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An Assessment on the Relationship Between Informal Economy and Educational Level in Turkey

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  • Mehmet Ela

    (Department of Public Finance, Faculty of Economics and Administrative Sciences,Osmaniye Korkut Ata University, Osmaniye, Turkey)

Abstract

The informal economy is an obscure concept but it contains several economic transactions. It is a very difficult task to measure its size and dimensions, however economists have developed reliable methods to predict the size and impact of informal economy in a given country or economic region. Studies in Turkey and abroad indicate that informal economy in this country is considerably large and sprawling. Existence of informal economy is a significant problem in any country since it negatively affects the national economic system. So far, policies deployed to deal with the negative outcomes of informal economy in Turkey mainly focused on tax policies and wages. On the other hand, increased educational attainment and provision of contemporary educational programs should be considered as better means to reduce the size and negative impact of informal economy. However, before using education to solve problems related to informal economy, the educational system needs to be restructured along with other restructuring efforts in economy, politics and legal systems. Increased educational attainment should also contribute to resolution of such social problems as economic growth and unfair income distribution in the country.

Suggested Citation

  • Mehmet Ela, 2013. "An Assessment on the Relationship Between Informal Economy and Educational Level in Turkey," International Journal of Economics and Financial Issues, Econjournals, vol. 3(4), pages 910-922.
    • Handle: RePEc:eco:journ1:2013-04-12
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    References listed on IDEAS

    as
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    Cited by:

    1. Cem Başlevent & Ayşenur Acar, 2015. "Recent trends in informal employment in Turkey," Yildiz Social Science Review, Yildiz Technical University, vol. 1(1), pages 77-88.
    2. Duc Hong Vo & Ha Minh Nguyen & Tan Manh Vo & Michael McAleer, 2020. "Information Sharing, Bank Penetration and Tax Evasion in Emerging Markets," Risks, MDPI, vol. 8(2), pages 1-16, April.
    3. Paraskevi Koufopoulou & Colin C. Williams & Athanassios Vozikis & Kyriakos Souliotis & Antonios Samprakos, 2021. "Estimating Shadow Economy Size in Greece 2000 - 2018: A Flexible MIMIC Approach," SPOUDAI Journal of Economics and Business, SPOUDAI Journal of Economics and Business, University of Piraeus, vol. 71(3-4), pages 23-47, July-Dece.
    4. Cem Baslevent, 2016. "Social Transfers and Income Inequality in Turkey: How Important is the Gender Dimension?," Working Papers 1013, Economic Research Forum, revised Jun 2016.

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    More about this item

    Keywords

    Informal economy; education; informal employment;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • E26 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Informal Economy; Underground Economy
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education

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