What determines informal hiring? Evidence from the Turkish textile sector

Fatih Savasan () and Friedrich Schneider ()
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Fatih Savasan: Faculty of Economics and Administrative Sciences, Usak University, Usak, Turkey.

No 2006-04, Economics working papers from Department of Economics, Johannes Kepler University Linz, Austria

Abstract: Most studies about the shadow economy focus on the estimation of the aggregate size. However, this study aims to address the sectoral or micro aspects of this phenomenon using the data from the textile sector in Turkey. It uses discriminant analysis and ordered and logistic regression models to unveil the determinants of the informal hiring in Turkey. It concludes that high competition, the skill structure of the employees, perceived penalty scheme, and the size of the firms in the sector are important factors of the textile firms hiring informally.

Keywords: informal hiring in Turkish textile sector; discriminant analysis; logistic regression model; ordered regression (search for similar items in EconPapers)
JEL-codes: D78 H11 H2 H26 O17 O5 (search for similar items in EconPapers)
Date: 2006-06
New Economics Papers: this item is included in nep-cwa and nep-pbe
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:jku:econwp:2006_04

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