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- Title
DECLINING LABOR MARKET INFORMALITY IN TURKEY: UNREGISTERED EMPLOYMENT AND WAGE UNDERREPORTING.
- Authors
BAĞIR, Yusuf Kenan; KÜÇÜKBAYRAK, Müşerref; TORUN, Huzeyfe
- Abstract
This paper examines the labor market informality in Turkey at two margins, unregistered employment and wage underreporting. We first document the stylized facts about informal employment and its change from 2004 to 2021. While doing this, we examine heterogeneity in informality across regions, sectors, firm properties and worker characteristics. Second, we decompose the change in informality rate into its components using Oaxaca-Blinder methodology. We find that compositional change of workers in terms of gender, age, education, occupation, as well as composition of firms in terms of size and sector explains half of the decline in informality rate from 2004 to 2021. Finally, we analyze wage underreporting behavior in Turkish labor market using both survey data and social security registry records. We show that there is a wide gap between earned and declared wages to among registered employees. However, this discrepancy declines significantly in recent years.
- Subjects
TURKEY; OAXACA de Juarez (Mexico); LABOR market; WAGES; WAGE differentials; EMPLOYMENT changes; EMPLOYMENT; SOCIAL security
- Publication
Journal of Management & Economics Research, 2023, Vol 21, Issue 3, p364
- ISSN
2148-029X
- Publication type
Article
- DOI
10.11611/yead.1345943