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Title:The Turkish wage curve: Evidence from the household labor force survey PDF Logo
Authors:Baltagi, Badi H.
Baskaya, Yusuf Soner
Hulagu, Timur
Issue Date:2011
Series/Report no.:Discussion paper series // Forschungsinstitut zur Zukunft der Arbeit 5633
Abstract:This paper examines the Turkish wage curve using individual data from the Household Labor Force Survey (HLFS) including 26 NUTS-2 regions over the period 2005-2008. When the local unemployment rate is treated as predetermined, there is evidence in favor of the wage curve only for younger and female workers. However, if the lagged unemployment rate is used as an instrument for current unemployment rate, we find an unemployment elasticity of -0.099. We also find a higher elasticity for younger, less educated, low experienced workers than for older, more educated and more experienced workers. Another important finding is that the wages of females in Turkey are significantly more responsive to local unemployment rates than their male counterparts.
Subjects:wage curve
fixed effects
instrumental variables
two-stage least squares
JEL:C26
J30
J60
Persistent Identifier of the first edition:urn:nbn:de:101:1-201104134363
Document Type:Working Paper
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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