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Labor Force Status And Income Disparity - Evidence From Turkey

Author

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  • Ayça AKARÇAY-GÜRBÜZ

    (Galatasaray University and GIAM)

  • Mustafa ULUS

    (Galatasaray University and GIAM)

Abstract

The nature of the informal sector is a much debated issue. Is working in the informal sector a choice or a constraint? What is the relation between informality and poverty? Theoretically, both are possible, and in this sense, the informal sector bears its own dualism (Fields, 1990, 2005). Consequently, the answer is an empirical issue. In this study, we aim at providing further information about the Turkish labor market using the 2003 and 2008 Household Budget Surveys (HBS) which allows combining income levels with labor force status. We compare income according to five labor force statuses: non-participant, unemployed, worker in the formal sector and worker in the informal sector (agricultural and non-agricultural), and relate findings to poverty. We investigate data to see whether observable heterogeneities in terms of income exist not only between the different statuses, but also within the informal sector.

Suggested Citation

  • Ayça AKARÇAY-GÜRBÜZ & Mustafa ULUS, 2011. "Labor Force Status And Income Disparity - Evidence From Turkey," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 34, pages 39-56.
    • Handle: RePEc:tou:journl:v:34:y:2011:p:39-56
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    File URL: http://region-developpement.univ-tln.fr/fr/pdf/R34/3-Akarcay.pdf
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    References listed on IDEAS

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    1. Agénor, Pierre-Richard & Bayraktar, Nihal & El Aynaoui, Karim, 2008. "Roads out of poverty? Assessing the links between aid, public investment, growth, and poverty reduction," Journal of Development Economics, Elsevier, vol. 86(2), pages 277-295, June.
    2. Betcherman, Gordon & Daysal, N. Meltem & Pagés, Carmen, 2010. "Do employment subsidies work? Evidence from regionally targeted subsidies in Turkey," Labour Economics, Elsevier, vol. 17(4), pages 710-722, August.
    3. Günther, Isabel & Launov, Andrey, 2012. "Informal employment in developing countries," Journal of Development Economics, Elsevier, vol. 97(1), pages 88-98.
    4. Melanie Khamis, 2012. "Is Informal Sector Work an Alternative to Workfare Benefits? The Case of Pre-program Expansion and Economic Crisis," Review of Development Economics, Wiley Blackwell, vol. 16(4), pages 579-593, November.
    5. Johannes Jütting & Jante Parlevliet & Theodora Xenogiani, 2008. "Informal Employment Re-loaded," OECD Development Centre Working Papers 266, OECD Publishing.
    6. Pratap, Sangeeta & Quintin, Erwan, 2006. "Are labor markets segmented in developing countries? A semiparametric approach," European Economic Review, Elsevier, vol. 50(7), pages 1817-1841, October.
    7. Dominik H. Enste & Friedrich Schneider, 2000. "Shadow Economies: Size, Causes, and Consequences," Journal of Economic Literature, American Economic Association, vol. 38(1), pages 77-114, March.
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    Cited by:

    1. Ayça Akarçay Gürbüz & Sezgin Polat & Mustafa Ulus, 2014. "In Limbo: Exploring Transition to Discouragement," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 26(4), pages 527-551, September.

    More about this item

    Keywords

    LABOR FORCE STATUS; POVERTY; TURKEY; INFORMAL WORKERS;

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure

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