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The formal/informal employment earnings gap: evidence from Turkey

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dc.contributor.author Tansel, Aysit
dc.contributor.author Acar, Elif Öznur
dc.date.accessioned 2020-02-18T07:08:14Z
dc.date.available 2020-02-18T07:08:14Z
dc.date.issued 2017
dc.identifier.citation Tansel, Aysit; Acar, Elif Öznur, "The formal/informal employment earnings gap: evidence from Turkey", Inequality After The 20th Century: Papers From The Sixth Ecineq Meeting, Vol. 24, pp. 121-154, (2017). tr_TR
dc.identifier.isbn 978-1-78560-993-0
dc.identifier.uri http://hdl.handle.net/20.500.12416/2471
dc.description.abstract This study investigates the formal/informal employment earnings gap in Turkey. We focus on the earnings differentials that can be explained by observable characteristics and unobservable time-invariant individual heterogeneity. We first, estimate the standard Mincer earnings equations using ordinary least squares (OLS), controlling for individual, household, and job characteristics. Next we use, panel data and the quantile regression (QR) techniques in order to account for unobserved factors which might affect the earnings and the intrinsic heterogeneity within formal and informal sectors. OLS results confirm the existence of an informal sector penalty almost half of which is explained by observable variables. We find that formal-salaried workers are paid significantly higher than their informal counterparts and of the self-employed confirming the heterogeneity within the informal employment. QR results show that pay differentials are not uniform along the earnings distribution. In contrast to the mainstream literature which views informal self-employment as the upper-tier and wage-employment as the lower-tier, we find that self-employment corresponds to the lower-tier in the Turkish labor market. Finally, fixed effects estimation indicates that unobserved individual characteristics combined with controls for observable characteristics explain the pay differentials between formal and informal employment entirely in the total and the female sample. However, informal sector penalty persists in the male sample. tr_TR
dc.language.iso eng tr_TR
dc.publisher Emerald Group Publishing LTD tr_TR
dc.relation.isversionof 10.1108/S1049-258520160000024006 tr_TR
dc.rights info:eu-repo/semantics/closedAccess tr_TR
dc.subject Earnings Gap tr_TR
dc.subject Formal/Informal Employment tr_TR
dc.subject Labor Market Dynamics tr_TR
dc.subject Panel Data tr_TR
dc.subject Turkey tr_TR
dc.title The formal/informal employment earnings gap: evidence from Turkey tr_TR
dc.type bookPart tr_TR
dc.relation.journal Inequality After The 20th Century: Papers From The Sixth Ecineq Meeting tr_TR
dc.contributor.authorID 48566 tr_TR
dc.identifier.volume 24 tr_TR
dc.identifier.startpage 121 tr_TR
dc.identifier.endpage 154 tr_TR
dc.contributor.department ÇAnkaya Üniversitesi, İktisadi ve İdari Bilimler Fakültesi, Bankacılık ve Finans Bölümü tr_TR


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