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

  • Konyalı, Gonca

    ()

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

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    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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    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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    1. 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.
    2. David G. Blanchflower & Andrew J. Oswald, 1995. "The Wage Curve," MIT Press Books, The MIT Press, edition 1, volume 1, number 026202375x, June.
    3. David Card, 1995. "The Wage Curve: A Review," Journal of Economic Literature, American Economic Association, vol. 33(2), pages 285-299, June.
    4. Badi H. Baltagi & Yusuf Soner Baskaya & Timur Hulagu, 2011. "The Turkish Wage Curve : Evidence from the Household Labor Force Survey (Türkiye’de Ücret Egrisi: Hanehalki Isgücü Anketi’nden Bulgular)," Working Papers 1106, Research and Monetary Policy Department, Central Bank of the Republic of Turkey.
    5. Sanz-de-Galdeano, Anna & Turunen, Jarkko, 2006. "The euro area wage curve," Economics Letters, Elsevier, vol. 92(1), pages 93-98, July.
    6. 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.
    7. Bratsberg, Bernt & Turunen, Jarkko, 1996. "Wage curve evidence from panel data," Economics Letters, Elsevier, vol. 51(3), pages 345-353, June.
    8. Rauch, James E., 1991. "Modelling the informal sector formally," Journal of Development Economics, Elsevier, vol. 35(1), pages 33-47, January.
    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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