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The wage curve for Turkey revisited considering the spatial spillovers of the regional unemployment rates using individual level data for a period of 2004–2013 at the 26 NUTS-2 level by employing FE-2SLS models. The unemployment elasticity of real wages is −0.07 without excluding any group of workers unlike previous studies. There is strong evidenc...
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Context 1
... make use of these disaggregated unemployment rates to estimate wage curves for various group of workers. Table 3 presents wage curve estimates using group-specific regional unemployment rates of different groups; gender, skill, and age groups. These estimates should be compared to those in Table 2. ...
Context 2
... estimates should be compared to those in Table 2. The second column of Table 3 shows the unemployment elasticity of pay for women using women-specific unemployment rates. The FE-2SLS results show that there is no significant wage curve for women, unlike the highly significant elasticity of −0.063 in Table 2. ...
Context 3
... we present, the wage curve estimates for the workers disaggregated by three skill levels using group-specific regional unemployment rates in the last three columns of Table 3. Ilkkaracan et al. (2013) used regional unemployment rates disaggregated by three education/skill level to estimate the wage curve of females and males in the private sector. ...
Context 4
... wages of the low-skilled workers have the highest responsiveness to the regional overall unemployment rate in Table 2, whereas the high-skilled workers are the least responsive group. However, the FE-2SLS results in Table 3 indicate that the slope of the wage curve is the steepest for the medium-skilled workers. Also, the wages of high-skilled workers are more responsive to the group-specific unemployment rates than that of low-skilled workers. ...
Context 5
... are statistically significant spatial spillover effects for all groups. The elasticities for further disaggregated worker groups are presented in Appendix A Table A3. We find statistically significant unemployment elasticities for all groups. ...
Context 6
... A Table A3 present the FE-2SLS results for further disaggregated samples. Results indicate that the spatial spillover unemployment elasticities are higher than own-region unemployment elasticities except for those who works in large firms. ...
Context 7
... FE-2SLS results indicate that there are no significant wage elasticities with respect to own-region and adjacent regions' unemployment rates for the women workers. Note that the effect of own-region women-specific unemployment rate on the wages of females is similar to that found in Table 3. This can be attributable to the selection into wage employment problem that females face and the lack of spillover effects for the high-skilled workers. ...
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... Bu bağlamda, bu çalışmada tahmin sonuçları, cinsiyet ve yaş gibi farklı gruplara ait gruba özgü bölgesel işsizlik oranları kullanılarak elde edilmektedir. Türkiye için yapılmış önceki çalışmalar (Ilkkaracan ve Selim, 2003;Baltagi vd., 2012a;Baltagi vd., 2012b;Konyalı, 2012: Ilkkaracan vd., 2013Karatas, 2017) ...
The validity of the wage curve according to gender, age, and
region groups using individual data from the Household Labor
Force Survey of Turkish Statistical Institute (TURKSTAT),
including 26 (NUTS-2) regions for Turkey over the period
2004-2013 and 2014-2017 is examined in this paper. The
wage curve describes a negative relationship between the
wage level and the local unemployment rate. Previous studies
of the wage curve in Turkey have not investigated whether or
not the unemployment elasticity of wages differs in regions.
Group-specific unemployment rates are used as indicated
in Card (1995). A wage curve for Turkey is estimated by
using micro-level wage data. The survey includes 6,520,839
individual observation. 1,018,202 individuals are included to
the study who works continuously full-time and gives a greater
than 0 answer to the wage question. The data is analyzed with
FE-2SLS and EC-2SLS models. Significant results that give
consistent estimation according to the Hausman test result are
evaluated in the model. The consistent estimator for subgroups
is mostly EC-2SLS. According to the general findings, there
is a higher unemployment elasticity of wages in the regional
estimations of Turkey. In addition to this, there exists regions,
where the wage does not respond to group-specific regional
unemployment. According to this paper, the unemployment
elasticity of real wages changes from region to region for
different age and gender groups for regional estimations in
Turkey.
This paper estimates spatial wage curves for formal and informal workers in Turkey using individual level data from the Turkish Household Labor Force Survey provided by TURKSTAT for the period 2008–2014. Unlike previous studies on wage curves for formal and informal workers, we extend the analysis to allow for spatial effects. We also consider household characteristics that would affect the selection into formal employment, informal employment, and non-employment. We find that the spatial wage curve relation holds both for formal and informal workers in Turkey for a variety of specifications. In general, the wages of informal workers are more sensitive to the unemployment rates of the same region and other regions than formal workers. We find that accounting for the selection into formal and informal employment affects the magnitudes but not the significance of the spatial wage curves for the formal and informal workers with the latter always being larger in absolute value than that for formal workers.
