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The heterogeneity of informal employment and segmentation in the Turkish labour market

Author

Listed:
  • Mélika Ben Salem

    (ERUDITE - Equipe de Recherche sur l’Utilisation des Données Individuelles en lien avec la Théorie Economique - UPEM - Université Paris-Est Marne-la-Vallée - UPEC UP12 - Université Paris-Est Créteil Val-de-Marne - Paris 12, PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PSE - Paris-Jourdan Sciences Economiques - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique)

  • Isabelle Bensidoun

    (CEE - Centre d'études de l'emploi - M.E.N.E.S.R. - Ministère de l'Education nationale, de l’Enseignement supérieur et de la Recherche - Ministère du Travail, de l'Emploi et de la Santé)

Abstract

This paper aims at investigating the heterogeneity of informal employment on the Turkish labour market. To circumvent the constraints imposed by the traditional parametric methods, finite mixture models are estimated in order to identify the optimal number of segments within the informal employment and their respective returns to individual characteristics. In particular, it sheds light on the potential voluntary nature of informal employment by comparing the estimated probabilities of segment membership with the theoretical probabilities that would result from a competitive labour market under the hypothesis of income maximization by workers. Results show that the classical self-employed versus informal wage-workers divide is not the best split of informal employment. Furthermore, the two estimated informal employment segments are both less desirable than formal employment. Thus, the hypothesis of labour-market segmentation, even after taking informal-sector heterogeneity into account, seems to hold, supporting the traditional dualistic view of informal employment in the Turkish context.

Suggested Citation

  • Mélika Ben Salem & Isabelle Bensidoun, 2012. "The heterogeneity of informal employment and segmentation in the Turkish labour market," PSE-Ecole d'économie de Paris (Postprint) halshs-01118561, HAL.
    • Handle: RePEc:hal:pseptp:halshs-01118561
    DOI: 10.1080/13547860.2012.724546
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    Citations

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    Cited by:

    1. Enrique Alaniz & T.H. Gindling & Catherine Mata & Diego Rojas, 2021. "Heterogeneous informality in Costa Rica and Nicaragua," WIDER Working Paper Series wp-2021-50, World Institute for Development Economic Research (UNU-WIDER).
    2. Rayees Ahmad Sheikh & Sarthak Gaurav & Trupti Mishra, 2021. "Race among equals? An inquiry into the segmentation of Indian labor market," Review of Development Economics, Wiley Blackwell, vol. 25(4), pages 2180-2206, November.
    3. Thibaud Deguilhem & Jean-Philippe Berrou & François Combarnous, 2019. "Using your ties to get a worse job? The differential effects of social networks on quality of employment in Colombia," Review of Social Economy, Taylor & Francis Journals, vol. 77(4), pages 493-522, October.
    4. Christine ABLAZA & Mark WESTERN & Wojtek TOMASZEWSKI, 2021. "Good jobs and bad jobs for Indonesia's informal workers," International Labour Review, International Labour Organization, vol. 160(1), pages 143-168, March.
    5. Duman, Anil, 2020. "Pay Gaps and Mobility for Lower and Upper Tier Informal Sector Employees: an investigation of the Turkish labor market," GLO Discussion Paper Series 655, Global Labor Organization (GLO).

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