Macroeconomic Shocks and Labor Supply in Emerging Countries. Some Lessons from Turkey

Sezgin Polat and Francesco Saraceno

No 10-3, GIAM Working Papers from Galatasaray University Economic Research Center

Abstract: We investigate the general equilibrium effects of minimum consumption constraints over labor supply decisions. Within a simple static model, a minimum consumption constraint modifies labor supply decisions of unskilled workers, generating the well-known added worker effect. The results of the model help to analyze the Turkish labor market where added worker effects were observed following the 2001 crisis. We investigate the asymmetric effects of the crisis, using the Household Budget Surveys that cover the period between 2002 and 2005. The substantial decrease in real wages has increased labor supply for unskilled labor, especially for women

Keywords: Added worker; Taxation; Bivariate Probit; Labor Supply; Turkey (search for similar items in EconPapers)
JEL-codes: H23 J21 J22 J31 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2010-12, Revised 2010
New Economics Papers: this item is included in nep-ara and nep-cwa
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://giam.gsu.edu.tr/wp-content/uploads/2014/07/WP-10-03.pdf Full text (application/pdf)

Related works:
Working Paper: Macroeconomic Shocks and Labor Supply in Emerging Countries. Some Lessons from Turkey (2010)
Working Paper: Macroeconomic Shocks and Labor Supply in Emerging Countries: some Lessons from Turkey (2010)
Working Paper: Macroeconomic Shocks and Labor Supply in Emerging Countries: some Lessons from Turkey (2010)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ris:giamwp:2010_003

Access Statistics for this paper

More papers in GIAM Working Papers from Galatasaray University Economic Research Center Contact information at EDIRC.
Bibliographic data for series maintained by Renginar Senses Dayangac ().