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Journals / Journal of Mehmet Akif Ersoy University Economics and Administrative Sciences Faculty / 2025 / Volume: 12 Issue: 4

The Effect of Public Expenditures on Unemployment: Does Technology Matter?

Ömer Batuhan Beşirli(Central Bank of the Republic of Türkiye)0000-0002-5699-3158
Erdem Seçilmiş(HACETTEPE UNIVERSITY)0000-0002-5331-8122
Pages
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Publication Date
2025-12-23
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AI Summary & Key Takeaways

AI Insight
⚡ TL;DR(Too Long; Didn't Read)

According to the results, the employment-enhancing effect of public expenditures weakens when technological transformations accelerate.

📌 3 Key Takeaways

🎯
Objective & Hypothesis:Recent developments in technology are inducing irreversible transformations in the labor market.
📊
Key Findings & Data:It is expected that a significant number of the workforce will lose their jobs in the future due to low-skilled employees are more vulnerable to technology.
💡
Conclusion & Impact:According to the results, the employment-enhancing effect of public expenditures weakens when technological transformations accelerate.
🔬Design:Modeling & Simulation
📍Scope:2000 Verileri
⚙️Variables:Public Expenditure · Skill-Biased Technological Change · Task-Based Technological Change

Abstract

Recent developments in technology are inducing irreversible transformations in the labor market. In particular, developments in automation and artificial intelligence have brought the fear of technological unemployment back to the agenda. It is expected that a significant number of the workforce will lose their jobs in the future due to low-skilled employees are more vulnerable to technology. In addition, it is discussed in the literature that technology will trigger the problem of income (or wealth) distribution in the labor market. In this context, fiscal policies have begun to be presented and discussed as a solution in the literature to reduce the negative effects of technology. This study investigates how public expenditures can affect unemployment when technological transformations accelerate by using the dynamic threshold panel model for 38 countries between 2000 and 2021. According to the results, the employment-enhancing effect of public expenditures weakens when technological transformations accelerate.

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Cite This Article

Beşirli, Ö. B., Seçilmiş, E. (2025). The Effect of Public Expenditures on Unemployment: Does Technology Matter?. Journal of Mehmet Akif Ersoy University Economics and Administrative Sciences Faculty, Volume: 12 Issue: 4. https://doi.org/10.30798/makuiibf.1700034

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