Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/67252
Authors: 
Baltagi, Badi H.
Baskaya, Yusuf Soner
Hulagu, Timur
Year of Publication: 
2012
Series/Report no.: 
Discussion Paper Series, Forschungsinstitut zur Zukunft der Arbeit 6836
Abstract: 
This paper presents wage curves for formal and informal workers using a rich individual level data for Turkey over the period 2005-2009. The wage curve is an empirical regularity describing a negative relationship between regional unemployment rates and individuals' real wages. While this relationship has been well documented for a number of countries including Turkey, less attention has focused on how this relationship differs for informal versus formal employment. This is of utmost importance for less developed countries where informal employment plays a significant role in the economy. Using the Turkish Household Labor Force Survey observed over 26 NUTS-2 regions, we find that real hourly wages of informal workers in Turkey are more sensitive to variations in regional unemployment rates than wages of formal workers. This is true for all workers as well as for different gender and age groups.
Subjects: 
formal/informal employment
wage curve
regional labor markets
JEL: 
C26
J30
J60
O17
Document Type: 
Working Paper

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