Recent Trends in the Turkish Labor Market

Ozan Bakis

Iktisat Isletme ve Finans, 2015, vol. 30, issue 351, 73-110

Abstract: The purpose of this paper is to survey recent labor market trends in Turkey, between 2002 and 2012, when important structural and institutional changes took place. The decreasing trend in labor force participation seems to stop in the early 2000s, and recover thereafter, at a faster pace in the case of women. Both the share of wage earners and registered workers increased substantially. Wage inequality decreased only in the first half of 2000s, with no clear trend afterwards. The paper identifies three main drivers of recent trends: (i) structural transformation consisting of reallocation of labor from rural areas/agriculture to urban areas/services or industry; (ii) changes in the minimum wage level; (iii) reforms to retirement laws. The combination of these three factors is used to explain the recent labor market trends.

Keywords: Turkey; Labor force participation; Self-employment; Informality; Wage Inequality. (search for similar items in EconPapers)
JEL-codes: J21 J31 (search for similar items in EconPapers)
Date: 2015
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