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The Impact of the Russian Sanctions on the Turkish Tourism Sector: Firm-level Evidence

Author

Listed:
  • Canan Yüksel Yücel

    (Central Bank of the Republic of Türkiye, İstanbul, Turkey)

  • Erol Taymaz

    (Department of Economics, Middle East Technical University, Ankara, Turkey)

Abstract

This study examines the impact of domestic outsourcing on the wages of workers performing outsourced tasks in Türkiye, using an administrative employee-employer linked dataset. Outsourcing events are identified by tracking worker flows across firms with specific properties. Unlike existing studies, our dataset incorporates buyer-supplier transactions, enabling us to confirm that a relationship between the predecessor and successor firm begins following the outsourcing event. This improves our ability to identify outsourcing events, which we use to explore wage effects of both high-skilled and low-skilled outsourcing. Our findings indicate that low-skilled workers experience wage losses from domestic outsourcing, while high-skilled, professional workers benefit, suggesting that domestic outsourcing may be one of the factors contributing to rising wage inequality.

Suggested Citation

  • Canan Yüksel Yücel & Erol Taymaz, 2025. "The Impact of the Russian Sanctions on the Turkish Tourism Sector: Firm-level Evidence," ERC Working Papers 2502, ERC - Economic Research Center, Middle East Technical University, revised May 2025.
    • Handle: RePEc:met:wpaper:2502
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    References listed on IDEAS

    as
    1. Jacobson, Louis S & LaLonde, Robert J & Sullivan, Daniel G, 1993. "Earnings Losses of Displaced Workers," American Economic Review, American Economic Association, vol. 83(4), pages 685-709, September.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Sanctions; Tourism; Foreign policy; Firm behavior;
    All these keywords.

    JEL classification:

    • F51 - International Economics - - International Relations, National Security, and International Political Economy - - - International Conflicts; Negotiations; Sanctions
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

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