IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/73165.html
   My bibliography  Save this paper

Industry Wage Differentials and Working Conditions in Turkey: A Brief Note

Author

Listed:
  • Polat, Sezgin

Abstract

In this article, we test the compensating wage differentials hypothesis for the manufacturing industry using official industrial accident figures provided by the Ministry of Labor and Social Security and wage data for the 2009-2014 Household Labor Force Surveys. First, we estimate a standard hedonic wage equation for the fatal and injury risk at the industrial level. After controlling for industry effects, the positive injury risk compensation disappears and becomes insignificant while the fatal risk premium reverses its sign from positive to negative. For an alternative estimation, we also used a two-step procedure by regressing industry wage differentials on working conditions including accident risk and several industry-specific averages. The results show, contrary to the compensating wage differentials hypothesis, that poor working conditions (higher fatal risk, longer working hours and high turn-over rate) are associated with lower wage compensation at the industry level. Our findings reveal a segmented labor market where low pay sectors are characterized by poor working conditions.

Suggested Citation

  • Polat, Sezgin, 2016. "Industry Wage Differentials and Working Conditions in Turkey: A Brief Note," MPRA Paper 73165, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:73165
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/73165/1/MPRA_paper_73165.pdf
    File Function: original version
    Download Restriction: no
    File URL: https://mpra.ub.uni-muenchen.de/73230/1/MPRA_paper_73230.pdf
    File Function: revised version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Beat Hintermann & Anna Alberini & Anil Markandya, 2010. "Estimating the value of safety with labour market data: are the results trustworthy?," Applied Economics, Taylor & Francis Journals, vol. 42(9), pages 1085-1100.
    2. Viscusi, W Kip & Aldy, Joseph E, 2003. "The Value of a Statistical Life: A Critical Review of Market Estimates throughout the World," Journal of Risk and Uncertainty, Springer, vol. 27(1), pages 5-76, August.
    3. Krueger, Alan B & Summers, Lawrence H, 1988. "Efficiency Wages and the Inter-industry Wage Structure," Econometrica, Econometric Society, vol. 56(2), pages 259-293, March.
    4. Polat, Sezgin, 2013. "Wage Compensation for Risk: The Case of Turkey," GIAM Working Papers 13-11, Galatasaray University Economic Research Center.
    5. Charles Brown, 1980. "Equalizing Differences in the Labor Market," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 94(1), pages 113-134.
    6. Kim, Seung-Wook & Fishback, Price V, 1999. "The Impact of Institutional Change on Compensating Wage Differentials for Accident Risk: South Korea, 1984-1990," Journal of Risk and Uncertainty, Springer, vol. 18(3), pages 231-248, October.
    7. Saxonhouse, Gary R, 1976. "Estimated Parameters as Dependent Variables," American Economic Review, American Economic Association, vol. 66(1), pages 178-183, March.
    8. Jon C. Messenger, 2011. "Working time trends and developments in Europe 1," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 35(2), pages 295-316.
    9. Hwang, Hae-shin & Reed, W Robert & Hubbard, Carlton, 1992. "Compensating Wage Differentials and Unobserved Productivity," Journal of Political Economy, University of Chicago Press, vol. 100(4), pages 835-858, August.
    10. repec:reg:rpubli:282 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Intan Nurpratiwi & Syamsurijal Abdul Kadir & Yunisvita Yunisvita, 2019. "Factors that Influence Wages Differences in Formal Sector on Male and Female Workers in Palembang City," Business & Management Compass, University of Economics Varna, issue 4, pages 327-343.
    2. Intan NURPRATIWI & Syamsurijal AK & YUNISVITA, 2020. "Factors that influence wages differences in formal sector on male and female workers in Palembang City," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(1(622), S), pages 147-158, Spring.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Maureen Cropper & James K. Hammitt & Lisa A. Robinson, 2011. "Valuing Mortality Risk Reductions: Progress and Challenges," Annual Review of Resource Economics, Annual Reviews, vol. 3(1), pages 313-336, October.
    2. Aaron Sojourner, "undated". "Partial identification of willingness-to-pay using shape restrictions with an application to the value of a statistical life," Working Papers 0110, Human Resources and Labor Studies, University of Minnesota (Twin Cities Campus).
    3. Thomas J. Kniesner & W. Kip Viscusi & Christopher Woock & James P. Ziliak, 2006. "Pinning Down the Value of Statistical Life," Center for Policy Research Working Papers 85, Center for Policy Research, Maxwell School, Syracuse University.
    4. Thomas DeLeire & Shakeeb Khan & Christopher Timmins, 2013. "Roy Model Sorting And Nonrandom Selection In The Valuation Of A Statistical Life," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 54(1), pages 279-306, February.
    5. Rafael Muñoz de Bustillo & Enrique Fernández-Macías & José-Ignacio Antón & Fernando Esteve, 2011. "Measuring More than Money," Books, Edward Elgar Publishing, number 14072.
    6. Dupuy, Arnaud & Galichon, Alfred, 2017. "A Note on the Estimation of Job Amenities and Labor Productivity," IZA Discussion Papers 10900, Institute of Labor Economics (IZA).
    7. Bellavance, Franois & Dionne, Georges & Lebeau, Martin, 2009. "The value of a statistical life: A meta-analysis with a mixed effects regression model," Journal of Health Economics, Elsevier, vol. 28(2), pages 444-464, March.
    8. Nicole Maestas & Kathleen J. Mullen & David Powell & Till von Wachter & Jeffrey B. Wenger, 2023. "The Value of Working Conditions in the United States and the Implications for the Structure of Wages," American Economic Review, American Economic Association, vol. 113(7), pages 2007-2047, July.
    9. Spengler, Hannes, 2004. "Kompensatorische Lohndifferenziale und der Wert eines statistischen Lebens in Deutschland," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 37281, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    10. Climent Quintana-Domeque, 2008. "Preferences, Comparative Advantage, and Compensating Wage Differentials for Job Routinization," Working Papers 1063, Princeton University, Department of Economics, Industrial Relations Section..
    11. Wehn-Jyuan Tsai & Jin-Tan Liu & James Hammitt, 2011. "Aggregation Biases in Estimates of the Value per Statistical Life: Evidence from Longitudinal Matched Worker-Firm Data in Taiwan," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 49(3), pages 425-443, July.
    12. Thomas J. Kniesner & W. Kip Viscusi & Christopher Woock & James P. Ziliak, 2005. "How Unobservable Productivity Biases the Value of a Statistical Life," NBER Working Papers 11659, National Bureau of Economic Research, Inc.
    13. Anelli, Massimo & Koenig, Felix, 2021. "Willingness to Pay for Workplace Safety," IZA Discussion Papers 14919, Institute of Labor Economics (IZA).
    14. Arnaud Dupuy & Alfred Galichon, 2023. "A Note on the Estimation of Job Amenities and Labor Productivity," Papers 2301.12542, arXiv.org.
    15. Climent Quintana‐Domeque, 2011. "Preferences, Comparative Advantage, and Compensating Wage Differentials for Job Routinization," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 73(2), pages 207-229, April.
    16. Delfgaauw, Josse & Dur, Robert, 2010. "Managerial talent, motivation, and self-selection into public management," Journal of Public Economics, Elsevier, vol. 94(9-10), pages 654-660, October.
    17. Zhang, Nan & Mendelsohn, Robert & Shaw, Daigee, 2023. "How to Identify and Estimate the Demand for Job Safety?," MPRA Paper 118594, University Library of Munich, Germany.
    18. Muhammad Rafiq & Mir Kalan Shah, 2010. "The Value of Reduced Risk of Injury and Deaths in Pakistan—Using Actual and Perceived Risk Estimates," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 49(4), pages 823-837.
    19. Thomas J. Kniesner & W. Kip Viscusi & Christopher Woock & James P. Ziliak, 2012. "The Value of a Statistical Life: Evidence from Panel Data," The Review of Economics and Statistics, MIT Press, vol. 94(1), pages 74-87, February.
    20. Spengler, Hannes, 2004. "Kompensatorische Lohndifferenziale und der Wert eines statistischen Lebens in Deutschland," Darmstadt Discussion Papers in Economics 133, Darmstadt University of Technology, Department of Law and Economics.

    More about this item

    Keywords

    Hedonic Wages; Wage Differentials; Working Hours; Work Accident; Fatal Risk; Turkey;
    All these keywords.

    JEL classification:

    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J81 - Labor and Demographic Economics - - Labor Standards - - - Working Conditions

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:73165. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.