Human Development and Unemployment - Case Study of Turkey

Bc. Dilan Kayahan, BA

Diplomová práce

Abstract:

This thesis examines the relationship between human development and unemployment in Türkiye over the period 1991–2023. The main objective is to analyze whether improvements in human development, measured by the Human Development Index (HDI), contribute to reducing unemployment. In addition to HDI, the analysis includes several macroeconomic control variables, such as GDP growth, inflation, trade openness, and youth unemployment. The empirical analysis is based on annual time-series data obtained from the World Bank, UNDP, and Statista. An Ordinary Least Squares (OLS) regression model is applied to examine the relationship between the variables. Diagnostic tests are conducted to ensure the validity of the model, including tests for heteroskedasticity, autocorrelation, and normality. The results indicate that youth unemployment has a strong and statistically significant positive effect on overall unemployment. GDP growth is found to be negatively related to unemployment, consistent with economic theory. However, contrary to expectations, HDI shows a positive and statistically significant relationship with unemployment. This finding suggests the presence of a development–unemployment paradox in Türkiye, where improvements in education, health, and income may increase labor force participation and job expectations faster than job creation. Overall, the study highlights the complexity of the relationship between development and labor market outcomes and suggests that economic growth alone may not be sufficient to reduce unemployment without structural labor market improvements.

Keywords

Human Development Index, Turkey (Türkiye), Unemployment

Jazyk práce: angličtina

Datum vytvoření / odevzdání či podání práce: 1. 4. 2026

Obhajoba závěrečné práce

• Obhajoba proběhla 2. 6. 2026
• Vedoucí: doc. Ing. Lenka Rumánková, Ph.D.
• Oponent: Kateřina Matulová, externi

Česká zemědělská univerzita v Praze

Provozně ekonomická fakulta

Magisterský studijní program:
International Trade and Business