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Wage Curve Evidence From Turkey’s 2007-2009 Income and Living Conditions Survey

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  • Konyalı, Gonca

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    (Dokuz Eylul University, Faculty of Business, Economics Department)

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    Abstract

    The aim of this paper is to investigate the labour market conditions of Turkey via disaggregated wage curves following the argument that group specific regional unemployment rates might better describe wage curves than aggregate ones. Using 2007-2009 panel survey of Income and Living Conditions, I found that there is weak evidence in favour of the existence of a wage curve for Turkey. Different categories of unemployment rate give different results on the unemployment elasticity of pay. For male workers, wage curve relationship seems to exist only when male unemployment rates are used and for female workers, there is no evidence in favor of a wage curve. When the data are split into two age groups, and age specific unemployment rates are used, there appears a wage curve for women of age twenty-five to sixty-four and a positive unemployment elasticity of pay for the women of age fifteen to twenty-four. These results might be explained by •Ilkkaracan and Selim (2003)’s argument focusing on the labour force participation dynamics of women in Turkey.

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    Bibliographic Info

    Article provided by Asociación Española de Ciencia Regional in its journal Investigaciones Regionales.

    Volume (Year): (2012)
    Issue (Month): 24 ()
    Pages: 199-210

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    Handle: RePEc:ris:invreg:0009

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    Keywords: Wage curve; group-specific regional unemployment rates;

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    1. Baltagi, Badi H. & Baskaya, Yusuf Soner & Hulagu, Timur, 2012. "The Turkish wage curve: Evidence from the Household Labor Force Survey," Economics Letters, Elsevier, vol. 114(1), pages 128-131.
    2. Blanchflower, D. & Oswald, A., 1989. "The Wage Curve," Papers 340, London School of Economics - Centre for Labour Economics.
    3. Peter Nijkamp & Jacques Poot, 2002. "The Last Word on the Wage Curve?," Tinbergen Institute Discussion Papers 02-029/3, Tinbergen Institute, revised 13 Mar 2003.
    4. Sanz-de-Galdeano, Anna & Turunen, Jarkko, 2006. "The euro area wage curve," Economics Letters, Elsevier, vol. 92(1), pages 93-98, July.
    5. Solon, Gary & Barsky, Robert & Parker, Jonathan A, 1994. "Measuring the Cyclicality of Real Wages: How Important Is Composition Bias?," The Quarterly Journal of Economics, MIT Press, vol. 109(1), pages 1-25, February.
    6. Rauch, James E., 1991. "Modelling the informal sector formally," Journal of Development Economics, Elsevier, vol. 35(1), pages 33-47, January.
    7. David Card, 1995. "The Wage Curve: A Review," Working Papers 722, Princeton University, Department of Economics, Industrial Relations Section..
    8. Bratsberg, Bernt & Turunen, Jarkko, 1996. "Wage curve evidence from panel data," Economics Letters, Elsevier, vol. 51(3), pages 345-353, June.
    9. Baltagi, Badi H. & Blien, Uwe, 1998. "The German wage curve: evidence from the IAB employment sample," Economics Letters, Elsevier, vol. 61(2), pages 135-142, November.
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