Proceedings of the 8th International Academic Conference on Management and Economics
Year: 2024
DOI:
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Equilibrium Problem of Labor Market and Jobless
Growth; The Relationship Between Unpaid Labor and Economic Growth in MENA Region Countries
Saadet Yağmur Kumcu
ABSTRACT:
The approach of economic theory that takes labor-employment dependency into account makes the equilibrium analysis of labor markets difficult. Labor is the most important input in the production of goods and services within the economic functioning; While it is paid, it can also be provided free of charge, depending on population growth. In the patriarchal economic system, and especially in underdeveloped countries, the majority of those providing unpaid labor are women, on the one hand while deepening gender-based inequalities; on the other hand, it increases welfare problems in global economic functioning. In this study, it is envisaged that the rational individual in the classical economy is replaced by the limited rational individual of the heterodox economy, which is independent of the development of the country and emerges as a global achievement of the capitalist system. This prediction in the study; It is tested in MENA region countries using the labor – employment independence model (LEIM). According to the model; housewife labor, provided by limited rational individuals, the majority of the population being women, was used as an unpaid labor variable and its effect on growth without employment was calculated. As a result, inequalities in the labor market, which develops due to the demand for free labor supply, are explained and appropriate policy recommendations are made to eliminate labor inequality with the behavioral economics approach.
keywords: inequality, labor – employment independence, limited rationality, housewife labor, behavioral economics