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

Badi Baltagi, Yusuf Baskaya and Timur Hulagu

No 5633, IZA Discussion Papers from Institute of Labor Economics (IZA)

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.

Keywords: instrumental variables; fixed effects; wage curve; two-stage least squares (search for similar items in EconPapers)
JEL-codes: C26 J30 J60 (search for similar items in EconPapers)
Pages: 10 pages
Date: 2011-04
New Economics Papers: this item is included in nep-ara, nep-geo, nep-lab and nep-ltv
References: View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Published - published in: Economics Letters, 2012, 114 (1), 128-131.

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https://docs.iza.org/dp5633.pdf (application/pdf)

Related works:
Journal Article: The Turkish wage curve: Evidence from the Household Labor Force Survey (2012)
Working Paper: The Turkish Wage Curve: Evidence from the Household Labor Force Survey (2011)
Working Paper: The Turkish Wage Curve: Evidence from the Household Labor Force Survey (2011)
Working Paper: The Turkish Wage Curve: Evidence from the Household Labor Force Survey (T�rkiye�de �cret Egrisi: Hanehalki Isg�c� Anketi�nden Bulgular) (2011)
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