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Overview of Firm-Size and Gender Pay Gaps in Turkey: The Role of Informal Employment

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  • Akar, Gizem
  • Balkan, Binnur
  • Tumen, Semih

Abstract

This paper documents two new facts linking firm-size and gender pay gaps to informal employment using micro-level data from Turkey. First, we show that the firm-size wage gap, defined as larger firms paying higher wages to observationally equivalent workers, is greater for informal employment than formal employment. And, second, we find that the gender pay gap is constant across different firm-size categories for formal employment, while it is a decreasing function of firm size for informal employment. These two facts jointly suggest that the informality status of a job is a valuable source of information in understanding the underlying forces determining firm-size and gender wage gaps. We propose and discuss the relevance of alternative mechanisms that might be generating these facts.

Suggested Citation

  • Akar, Gizem & Balkan, Binnur & Tumen, Semih, 2014. "Overview of Firm-Size and Gender Pay Gaps in Turkey: The Role of Informal Employment," MPRA Paper 53835, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:53835
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    Cited by:

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    3. Kübler, Dorothea & Schmid, Julia & Stüber, Robert, 2018. "Gender discrimination in hiring across occupations: a nationally-representative vignette study," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 55, pages 215-229.

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    More about this item

    Keywords

    Informal employment; wage differentials; firm size; gender discrimination; THLFS.;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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