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The Impact of the Turkish Employment Subsidy Programs on Increasing the Level of Social Protection For Women

Author

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  • Binnur Balkan
  • Seyit M|min Cilasun
  • Belgi Turan

    (Atilim University)

Abstract

This paper investigates the impact of the employment subsidy program implemented in 2008 by Turkish government to generate new employment opportunities for women and young men. More precisely, using a nationally representative individual level data, we analyze the impact of the program on social protection of women by checking the transitions in the labor market states. Using difference-in-differences (DID) estimation technique; we assess the effectiveness of the policy by analyzing the switches from informal employment to formal employment, from unemployment to formal employment and from out of the labor force to formal employment. Our results indicate that the reform did not effectively increase the employment probabilities of women compared to men who are not eligible to benefit from the program but formality of women in the labor market increased significantly suggesting an expansion in the social security coverage women in Turkey.

Suggested Citation

  • Binnur Balkan & Seyit M|min Cilasun & Belgi Turan, 2016. "The Impact of the Turkish Employment Subsidy Programs on Increasing the Level of Social Protection For Women," Working Papers 1022, Economic Research Forum, revised Jun 2016.
  • Handle: RePEc:erg:wpaper:1022
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    References listed on IDEAS

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    1. Orszag, J. Michael & Snower, Dennis J., 2003. "Designing employment subsidies," Labour Economics, Elsevier, vol. 10(5), pages 557-572, October.
    2. Cilasun, Seyit Mumin & Acar, Elif Oznur & Gunalp, Burak, 2015. "The Effects of Labor Market Reforms on the Labor Market Dynamics in Turkey," MPRA Paper 64767, University Library of Munich, Germany.
    3. Huttunen, Kristiina & Pirttilä, Jukka & Uusitalo, Roope, 2013. "The employment effects of low-wage subsidies," Journal of Public Economics, Elsevier, vol. 97(C), pages 49-60.
    4. Binnur Balkan & Yusuf Soner Baskaya & Semih Tumen, 2014. "Evaluating the Impact of the Post-2008 Employment Subsidy Program in Turkey," Working Papers 1414, Research and Monetary Policy Department, Central Bank of the Republic of Turkey.
    5. Richard Blundell & Monica Costa Dias & Costas Meghir & John Van Reenen, 2004. "Evaluating the Employment Impact of a Mandatory Job Search Program," Journal of the European Economic Association, MIT Press, vol. 2(4), pages 569-606, June.
    6. Maarten Goos & Jozef Konings, 2007. "The Impact of Payroll Tax Reductions on Employment and Wages: A Natural Experiment Using Firm Level Data," LICOS Discussion Papers 17807, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
    7. 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.
    8. Sinem Ayhan, 2013. "Do non-wage cost rigidities slow down employment? Evidence from Turkey," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 2(1), pages 1-23, December.
    9. Huttunen, Kristiina & Pirttilä, Jukka & Uusitalo, Roope, 2013. "The employment effects of low-wage subsidies," Journal of Public Economics, Elsevier, vol. 97(C), pages 49-60.
    10. Albert G. Schweinberger, 1978. "Employment Subsidies and the Theory of Minimum Wage Rates in General Equilibrium," The Quarterly Journal of Economics, Oxford University Press, vol. 92(3), pages 361-374.
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    Cited by:

    1. Kaya, Ezgi, 2019. "Gender wage gap across the quantiles:What is the role of firm segregation?," Cardiff Economics Working Papers E2019/7, Cardiff University, Cardiff Business School, Economics Section.

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