Spatial Wage Curves for Formal and Informal Workers in Turkey

Badi Baltagi and Yusuf Baskaya

No 15060, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This paper estimates spatial wage curves for formal and informal workers in Turkey using individual level data from the Turkish Household Labor Force Survey (THLFS) provided by TURKSTAT for the period 2008-2014. Unlike previous studies on wage curves for formal and informal workers, we extend the analysis to allow for spatial effects. We also consider household characteristics that would affect the selection into formal employment, informal employment, and non-employment. We find that the spatial wage curve relation holds both for formal and informal workers in Turkey for a variety of specifications. In general, the wages of informal workers are more sensitive to the unemployment rates of the same region and other regions than formal workers. We find that accounting for the selection into formal and informal employment affects the magnitudes but not the significance of the spatial wage curves for the formal and informal workers with the latter always being larger in absolute value than that for formal workers.

Keywords: spatial wage curve; spatial weights; regional labor markets; informal labor markets (search for similar items in EconPapers)
JEL-codes: C21 J30 J60 (search for similar items in EconPapers)
Pages: 33 pages
Date: 2022-02
New Economics Papers: this item is included in nep-ara, nep-geo, nep-iue, nep-lma, nep-ltv and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Published - published in Journal of Spatial Econometrics, 2022, 3, Article 3

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Related works:
Journal Article: Spatial wage curves for formal and informal workers in Turkey (2022)
Working Paper: Spatial Wage Curves for Formal and Informal Workers in Turkey (2022)
Working Paper: Spatial Wage Curves for Formal and Informal Workers in Turkey (2022)
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