The Turkish Wage Curve: Evidence from the Household Labor Force Survey - Economic Research Forum (ERF)

The Turkish Wage Curve: Evidence from the Household Labor Force Survey

Badi Baltagi, Yusuf Soner Baskaya and Timur Hulagu

October, 2011


11 pages

Economic Research Forum (ERF)

J. Labor and Demographic Economics

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 the 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.

Arabic Abstract:

تبحث هذه الورقة منحنى الأجور التركية باستخدام بيانات فردية من مسح القوى العاملة المنزلية (HLFS) بما في ذلك المناطق 26 NUTS-2 خلال الفترة من 2005 — 2008. وعند التعامل مع معدل البطالة المحلية بإعتباره محدد سلفا، فإن هناك أدلة لصالح منحنى الأجور فقط للعمال صغار السن والإناث. ومع ذلك، و عند استخدام معدل البطالة المتخلف كأداة قياس لمعدل البطالة الحالي، نجد مرونة البطالة بسالب 0.099. كما وجدنا مرونة أكبر للعمال الأصغر سنا الأقل تعليما، أكثر من العاملين الأكبر سنا، والأكثر تعليما والأكثر خبرة. و اخيرا وجدنا أن أجور الإناث في تركيا أكثر استجابة و بشكل ملحوظ لمعدلات البطالة المحلية عن نظرائهم الذكور.
Research Fellows

Badi Baltagi

Distinguished Professor of Economics, Syracuse University

Yusuf Soner Baskaya

Timur Hulagu



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