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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
... shape files for the NUTS-2 regions used to create spatial weights are extracted from the shape files available in EUROSTAT for all European countries in all NUTS levels. Summary statistics of our sample for the variables used in our estimations are presented in Table 1. Table 1 shows that only 23.5% of our sample is female. ...
Context 2
... statistics of our sample for the variables used in our estimations are presented in Table 1. Table 1 shows that only 23.5% of our sample is female. This is not surprising because labor force statistics of TURKSTAT shows that the labor force participation of women is quite low ranging between 20%-30% in the last two decades. ...
Context 3
... is not surprising because labor force statistics of TURKSTAT shows that the labor force participation of women is quite low ranging between 20%-30% in the last two decades. It is also presented in Table 1 that the average working hours per week is 51 hours which is the highest average among the OECD countries. The average years of education of the sample is 9.13. ...
Context 4
... present the unemployment elasticity of pay for the comparison periods with the overall unemployment rates as well as with non-agricultural unemployment rates in the Appendix A Table A1. Panel A of Table A1 suggests that there is no evidence for a wage curve in periods 2005-2008 and 2005-2009, except one case, for the male workers in the 2005-2009 sample, when the overall unemployment rate is used. ...
Context 5
... present the unemployment elasticity of pay for the comparison periods with the overall unemployment rates as well as with non-agricultural unemployment rates in the Appendix A Table A1. Panel A of Table A1 suggests that there is no evidence for a wage curve in periods 2005-2008 and 2005-2009, except one case, for the male workers in the 2005-2009 sample, when the overall unemployment rate is used. This is similar to Ilkkaracan et al. (2013) and Konyali (2012). ...
Context 6
... is similar to Ilkkaracan et al. (2013) and Konyali (2012). Furthermore, Panel B of Table A1 shows the same comparison but using the non-agricultural unemployment rate. We were able to replicate the fixed effect results of Baltagi et al. (2012Baltagi et al. ( , 2013, such that the wage curve for women is more elastic than for men in the periods, 2005-2008 and 2005-2009. ...
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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.
