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The formal/informal employment earnings gap: evidence from Turkey

dc.contributor.authorTansel, Aysit
dc.contributor.authorAcar, Elif Öznur
dc.contributor.authorID48566tr_TR
dc.date.accessioned2020-02-18T07:08:14Z
dc.date.available2020-02-18T07:08:14Z
dc.date.issued2017
dc.departmentÇAnkaya Üniversitesi, İktisadi ve İdari Bilimler Fakültesi, Bankacılık ve Finans Bölümüen_US
dc.description.abstractThis 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.en_US
dc.identifier.citationTansel, 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).en_US
dc.identifier.doi10.1108/S1049-258520160000024006
dc.identifier.endpage154en_US
dc.identifier.isbn9781785609930
dc.identifier.startpage121en_US
dc.identifier.urihttp://hdl.handle.net/20.500.12416/2471
dc.identifier.volume24en_US
dc.language.isoenen_US
dc.publisherEmerald Group Publishing LTDen_US
dc.relation.ispartofInequality After The 20th Century: Papers From The Sixth Ecineq Meetingen_US
dc.rightsinfo:eu-repo/semantics/closedAccessen_US
dc.subjectEarnings Gapen_US
dc.subjectFormal/Informal Employmenten_US
dc.subjectLabor Market Dynamicsen_US
dc.subjectPanel Dataen_US
dc.subjectTurkeyen_US
dc.titleThe formal/informal employment earnings gap: evidence from Turkeytr_TR
dc.titleThe Formal/Informal Employment Earnings Gap: Evidence From Turkeyen_US
dc.typeBook Parten_US
dspace.entity.typePublication

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