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Defining and Measuring Informality: The Case of Turkish Labor Market

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  • Elif Öznur ACAR
  • Aysıt TANSEL

Abstract

In this study, we consider how informality can be defined and measured in the Turkish labor market. The empirical analysis consists of developing three alternative definitions of labor informality, and exploring the relevance and implications of each for the Turkish labor market using descriptive statistics and multivariate probit analysis of the likelihood of informality under each definition. We find that social security registration criterion is a better measure of informality in the Turkish labor market given its ability to capture key relationships between several individual and employment characteristics and the likelihood of informality.

Suggested Citation

  • Elif Öznur ACAR & Aysıt TANSEL, 2016. "Defining and Measuring Informality: The Case of Turkish Labor Market," Sosyoekonomi Journal, Sosyoekonomi Society, issue 24(28).
    • Handle: RePEc:sos:sosjrn:160208
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    References listed on IDEAS

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    1. World Bank, 2010. "Turkey - Country Economic Memorandum Informality : Causes, Consequences, Policies," World Bank Publications - Reports 2843, The World Bank Group.
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    7. Henley, Andrew & Arabsheibani, G. Reza & Carneiro, Francisco G., 2009. "On Defining and Measuring the Informal Sector: Evidence from Brazil," World Development, Elsevier, vol. 37(5), pages 992-1003, May.
    8. Jaime Saavedra & Alberto Chong, 1999. "Structural reform, institutions and earnings: Evidence from the formal and informal sectors in urban Peru," Journal of Development Studies, Taylor & Francis Journals, vol. 35(4), pages 95-116.
    9. Guillermo E. Perry & William F. Maloney & Omar S. Arias & Pablo Fajnzylber & Andrew D. Mason & Jaime Saavedra-Chanduvi, 2007. "Informality : Exit and Exclusion," World Bank Publications - Books, The World Bank Group, number 6730, December.
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    Cited by:

    1. Başbay, Mustafa Metin & Elgin, Ceyhun & Torul, Orhan, 2018. "Socio-demographics, political attitudes and informal sector employment: A cross-country analysis," Economic Systems, Elsevier, vol. 42(4), pages 556-568.
    2. Altan Aldan & Muhammet Enes Çıraklı, 2022. "Restrictions on temporary employment and informality among young: evidence from Turkey," Economic Change and Restructuring, Springer, vol. 55(3), pages 1481-1496, August.
    3. Duman, Anil, 2020. "Non-Standard Employment and Wage Differences across Gender: a quantile regression approach," GLO Discussion Paper Series 664, Global Labor Organization (GLO).

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    More about this item

    Keywords

    Labor Market Dynamics; Informality; Definition and Measurement; Turkey.;
    All these keywords.

    JEL classification:

    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements

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