Wage Dynamics, Poverty, and Inequality in Türkiye during 2006-2024

Hai-Anh Dang (), Dhushyanth Raju (), Kseniya Abanokova () and Minh Do ()
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Hai-Anh Dang: World Bank
Dhushyanth Raju: World Bank
Kseniya Abanokova: World Bank
Minh Do: University of Economics and Business, Viet Nam National University, Hanoi

No 19066, IZA Discussion Papers from IZA Network @ LISER

Abstract: Hardly any study investigates the relationship between wage mobility, poverty, and inequality. Analyzing Turkish SILC data during 2006-2024, we find more wage mobility for longer time periods, particularly in the past three years. Wage mobility has largely been due to wage redistribution, rather than wage growth. Individual factors that are positively associated with higher-than-average wage mobility include working above the minimum wages, older age, having a formal job or being non-poor. Managers and professional workers or workers in large firms have most wage mobility, while workers in small to medium firms have lower-than-average to average wage mobility. Those working in the agricultural and industrial sectors have lowest wage mobility. Further regression analysis suggests that upward wage mobility and being able to maintain high wage over time are respectively associated with increases of at least 12% and 18% in poverty reduction.

Keywords: poverty; labor; wage; income; synthetic panels; Türkiye (search for similar items in EconPapers)
JEL-codes: I3 J3 J6 O1 (search for similar items in EconPapers)
Date: 2026-11
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