Macroeconomic Shocks and Labor Supply in Emerging Countries. Some Lessons from Turkey
AbstractWe 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.
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Bibliographic InfoPaper provided by Observatoire Francais des Conjonctures Economiques (OFCE) in its series Documents de Travail de l'OFCE with number 2010-36.
Date of creation: Dec 2010
Date of revision:
Added worker; Taxation; Bivariate Probit; Labor Supply; Turkish Labor Market;
Other versions of this item:
- Polat, Sezgin & Saraceno, Francesco, 2010. "Macroeconomic Shocks and Labor Supply in Emerging Countries. Some Lessons from Turkey," GIAM Working Papers 10-3, Galatasaray University Economic Research Center, revised 2010.
- Sezgin Polat & Francesco Saraceno, 2010. "Macroeconomic Shocks and Labor Supply in Emerging Countries: some Lessons from Turkey," Sciences Po publications 2010-36, Sciences Po.
- H2 - Public Economics - - Taxation, Subsidies, and Revenue
- J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
- J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-12-23 (All new papers)
- NEP-CWA-2010-12-23 (Central & Western Asia)
- NEP-LAB-2010-12-23 (Labour Economics)
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For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Francesco Saraceno).
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