Economic Status of Turkey
Labor:
The school life expectancy of the population of Turkey is eleven years, which means that the majority of the population does not complete higher education. Of the 73.9 million people, Turkey has a labor force of 24.2 million ranking them 25th in the world. Of the 24.2 million, 29.5% work in agriculture, 24.7% work in industry and 45.8% work in services. A 2009 estimate shows that “about 1.2 million Turks work abroad” (www.cia.gov). The unemployment rate of 14.6% is an unused resource of human labor with 20% of the population living below the poverty line.
According to the Index of Economic Freedom, Turkey is considered moderately free with a rating of 63.8; however, their Labor Freedom is ranked 41.1. “Turkey’s labor regulations are inflexible. The non-salary cost of employing a worker is high, and dismissing an employee is difficult. The rigid labor market results in high unemployment and has contributed to the formation of a large informal sector” (www.heritaage.org). Turkey’s birth rate is 18.66 births/1,000 population and are ranked 109th in the world. Their death rate of 6.1/1,000 population ranks them 159th in the world. The fact that the death rate is lower than the birth rate is beneficial for the future labor force. The median age is 27.7 years with a life expectancy of 71.96 years.
According to the Index of Economic Freedom, Turkey is considered moderately free with a rating of 63.8; however, their Labor Freedom is ranked 41.1. “Turkey’s labor regulations are inflexible. The non-salary cost of employing a worker is high, and dismissing an employee is difficult. The rigid labor market results in high unemployment and has contributed to the formation of a large informal sector” (www.heritaage.org). Turkey’s birth rate is 18.66 births/1,000 population and are ranked 109th in the world. Their death rate of 6.1/1,000 population ranks them 159th in the world. The fact that the death rate is lower than the birth rate is beneficial for the future labor force. The median age is 27.7 years with a life expectancy of 71.96 years.
Entrepreneurial Ability:
When reviewing the resource of labor it is evident that the resource of agriculture workers is significant; however, the lack of higher education affects the entrepreneurial ability of Turkey, which makes it the weakest resource. Although Turkey’s overall economic freedom score is 63.8 which puts Turkey at 67th in the world, the scarcity of people with education beyond eleven years greatly affects Turkey’s lack of entrepreneurial ability. This lack of higher education is a disadvantage because more than likely the entrepreneur will lack the necessary skills to be successful. These skills include the ability to 1) recognize profit opportunity, 2) organize the resources necessary and 3) and willingness to take on the risk.
