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Low-Wage Persistence in the Turkish Labor Market

Year 2022, Volume: 37 Issue: 2, 460 - 480, 05.06.2022
https://doi.org/10.24988/ije.962469

Abstract

Low-wage employment is a type of employment that is commonly seen in the labor market of both developed and developing countries. One of the reasons for the emergence of low-wage employment is low-wage persistence. This study aims is to investigate whether low-wage persistence in the Turkish labor market and the reasons for low-wage persistence. Low-wage persistence was analyzed with a bivariate probit model with the endogenous selection that addressed initial conditions problems, using panel data from 2013-2016 (Survey on Income and Living Conditions (SILC). The results show that the initial conditions should be taken into account, low-wage persistence is present in the Turkish labor market and a considerable part of the persistence stems from true state dependence. In addition, the remaining part of the low-wage persistence can be explained by observed heterogeneity such as gender, education level, skill, and firm size.

References

  • Cai, L., Mavromaras, K., ve Sloane, P. (2018). Low Paid Employment in Britain: Estimating State‐Dependence and Stepping Stone Effects. Oxford Bulletin of Economics and Statistics, 80(2), 283-326.
  • Cappellari, L. (1999). Low-pay transitions and attrition bias in Italy: An analysis using simulation-based estimation. Economic Research Papers 269253, University of Warwick, Department of Economics.
  • Cappellari, L. (2000). Low-wage mobility in the Italian labour market. International Journal of Manpower, 21(3-4), 264-290.
  • Cappellari, L., ve Jenkins, S. P. (2008a). Transitions between unemployment and low pay. Research in Labor Economics, in: Solomon W. Polachek ve Konstantinos Tatsiramos (ed.), Work, Earnings and Other Aspects of the Employment Relation içinde, volume 28, (57-79 ss.), Emerald Publishing Ltd.
  • Cappellari, L., ve Jenkins, S. P. (2008b). Estimating low pay transition probabilities accounting for endogenous selection mechanisms. Journal of the Royal Statistical Society, 57(2), 165-186.
  • Clark, K., ve Kanellopoulos, N. C. (2013). Low pay persistence in Europe. Labour Economics, 23, 122-134.
  • Cook, J. A., Newberger, N., ve Lee, J. S. (2020). On identification and estimation of Heckman models. http://dx.doi.org/10.2139/ssrn.3639727.
  • De Coulon, A., Zürcher, B. A. (2004). Low-pay Mobility in the Swiss Labour Market. In Minimum Wages, Low Pay and Unemployment içinde (57-86 ss.). Palgrave Macmillan, London.
  • Eraslan, V. (2012). Türkiye İşgücü Piyasasında Ücret Seviyesinde Cinsiyet Ayrımcılığı: Blinder-Oaxaca Ayrıştırma Yöntemi. İstanbul Üniversitesi İktisat Fakültesi Mecmuası, 62(1), 231-248.
  • Fok, Y. K., Scutella, R., ve Wilkins, R. (2015). The Low‐Pay No‐Pay Cycle: Are There Systematic Differences across Demographic Groups?. Oxford Bulletin of Economics and Statistics, 77(6), 872-896.
  • Heckman, J. J. (1981). The incidental parameters problem and the problem of initial conditions in estimating a discrete time-discrete data stochastic process and some Monte Carlo evidence. C. F. Manski ve D. McFadden (Ed.), Structural Analysis of Discrete Data with Econometric Applications içinde (179–195 ss.). Cambridge, MA: MIT Press.
  • Oi, W. Y., ve Idson, T. L. (1999). Firm size and wages. Handbook of labor economics, 3, 2165-2214.
  • Pasaribu, S. H. (2016). Persistence of Individual Unemployment in Indonesia: Dynamic Probit Analysis from Panel SUSENAS 2008-2010. International Journal of Economics and Financial Issues, 6(3), 1239–1245.
  • Schnabel, C. (2021). Low-wage employment. IZA World of Labor 2021: 276 doi: 10.15185/izawol.276.v2.
  • Stewart, M. B., ve Swaffield, J. K. (1999). Low pay dynamics and transition probabilities. Economica, 66(261), 23-42.
  • Stewart, M. B. (2007). The interrelated dynamics of unemployment and low‐wage employment. Journal of applied econometrics, 22(3), 511-531.
  • Şeker, S. D. (2011). The Dynamics of Poverty in Turkey. (Yayınlanmamış doktora tezi), Middle East Technical University, Ankara.
  • Tansel, A., Dalgıç, B., ve Güven, A. (2019). Wage inequality and wage mobility in Turkey. Social Indicators Research, 142(1), 107-129.
  • TÜİK, (2020). Gelir ve Yaşam Koşulları Araştırması, [Haber Bülteni], Erişim adresi https://tuikweb.tuik.gov.tr/PreHaberBultenleri.do?id=33820
  • TÜİK, (2021). Gelir ve Yaşam Koşulları Araştırması, Erişim adresi https://tuikweb.tuik.gov.tr/MicroVeri/GYKA_Panel_2017/turkce/metaveri/oerneklemetasariimii/index.html
  • Vieira, J. A. C. (2005). Low-wage mobility in the Portuguese labour market. Portuguese Economic Journal, 4(1), 1-14.

Türkiye İşgücü Piyasasında Düşük Ücret Kalıcılığı

Year 2022, Volume: 37 Issue: 2, 460 - 480, 05.06.2022
https://doi.org/10.24988/ije.962469

Abstract

Düşük ücretli istihdam hem gelişmiş hem de gelişmekte olan ülkelerin işgücü piyasasında yaygın bir şekilde görülen bir istihdam türüdür. Düşük ücretli istihdamın ortaya çıkmasının nedenlerinden biri düşük ücret kalıcılığıdır. Bu çalışmanın amacı Türkiye işgücü piyasasında düşük ücret kalıcılığının olup olmadığını ve düşük ücret kalıcılığının nedenlerini araştırmaktır. Düşük ücret kalıcılığı, Gelir ve Yaşam Koşulları Araştırması’ndan (GYKA) elde edilen 2013-2016 dönemine ait panel veriler kullanılarak başlangıç koşulları problemini dikkate alan örnek seçiminin olduğu içsel iki değişkenli probit modeli ile analiz edilmiştir. Ulaşılan sonuçlar başlangıç koşullarının göz önünde bulundurulması gerektiğini, Türkiye işgücü piyasasında düşük ücret kalıcılığının olduğunu ve bu kalıcılığın önemli bir kısmının gerçek duruma bağımlılıktan kaynaklandığını göstermiştir. Buna ilaveten düşük ücret kalıcılığının geriye kalan kısmının cinsiyet, eğitim seviyesi, vasıf ve firma büyüklüğü gibi gözlenen heterojenlik tarafından açıklanabildiği ortaya çıkmıştır.

References

  • Cai, L., Mavromaras, K., ve Sloane, P. (2018). Low Paid Employment in Britain: Estimating State‐Dependence and Stepping Stone Effects. Oxford Bulletin of Economics and Statistics, 80(2), 283-326.
  • Cappellari, L. (1999). Low-pay transitions and attrition bias in Italy: An analysis using simulation-based estimation. Economic Research Papers 269253, University of Warwick, Department of Economics.
  • Cappellari, L. (2000). Low-wage mobility in the Italian labour market. International Journal of Manpower, 21(3-4), 264-290.
  • Cappellari, L., ve Jenkins, S. P. (2008a). Transitions between unemployment and low pay. Research in Labor Economics, in: Solomon W. Polachek ve Konstantinos Tatsiramos (ed.), Work, Earnings and Other Aspects of the Employment Relation içinde, volume 28, (57-79 ss.), Emerald Publishing Ltd.
  • Cappellari, L., ve Jenkins, S. P. (2008b). Estimating low pay transition probabilities accounting for endogenous selection mechanisms. Journal of the Royal Statistical Society, 57(2), 165-186.
  • Clark, K., ve Kanellopoulos, N. C. (2013). Low pay persistence in Europe. Labour Economics, 23, 122-134.
  • Cook, J. A., Newberger, N., ve Lee, J. S. (2020). On identification and estimation of Heckman models. http://dx.doi.org/10.2139/ssrn.3639727.
  • De Coulon, A., Zürcher, B. A. (2004). Low-pay Mobility in the Swiss Labour Market. In Minimum Wages, Low Pay and Unemployment içinde (57-86 ss.). Palgrave Macmillan, London.
  • Eraslan, V. (2012). Türkiye İşgücü Piyasasında Ücret Seviyesinde Cinsiyet Ayrımcılığı: Blinder-Oaxaca Ayrıştırma Yöntemi. İstanbul Üniversitesi İktisat Fakültesi Mecmuası, 62(1), 231-248.
  • Fok, Y. K., Scutella, R., ve Wilkins, R. (2015). The Low‐Pay No‐Pay Cycle: Are There Systematic Differences across Demographic Groups?. Oxford Bulletin of Economics and Statistics, 77(6), 872-896.
  • Heckman, J. J. (1981). The incidental parameters problem and the problem of initial conditions in estimating a discrete time-discrete data stochastic process and some Monte Carlo evidence. C. F. Manski ve D. McFadden (Ed.), Structural Analysis of Discrete Data with Econometric Applications içinde (179–195 ss.). Cambridge, MA: MIT Press.
  • Oi, W. Y., ve Idson, T. L. (1999). Firm size and wages. Handbook of labor economics, 3, 2165-2214.
  • Pasaribu, S. H. (2016). Persistence of Individual Unemployment in Indonesia: Dynamic Probit Analysis from Panel SUSENAS 2008-2010. International Journal of Economics and Financial Issues, 6(3), 1239–1245.
  • Schnabel, C. (2021). Low-wage employment. IZA World of Labor 2021: 276 doi: 10.15185/izawol.276.v2.
  • Stewart, M. B., ve Swaffield, J. K. (1999). Low pay dynamics and transition probabilities. Economica, 66(261), 23-42.
  • Stewart, M. B. (2007). The interrelated dynamics of unemployment and low‐wage employment. Journal of applied econometrics, 22(3), 511-531.
  • Şeker, S. D. (2011). The Dynamics of Poverty in Turkey. (Yayınlanmamış doktora tezi), Middle East Technical University, Ankara.
  • Tansel, A., Dalgıç, B., ve Güven, A. (2019). Wage inequality and wage mobility in Turkey. Social Indicators Research, 142(1), 107-129.
  • TÜİK, (2020). Gelir ve Yaşam Koşulları Araştırması, [Haber Bülteni], Erişim adresi https://tuikweb.tuik.gov.tr/PreHaberBultenleri.do?id=33820
  • TÜİK, (2021). Gelir ve Yaşam Koşulları Araştırması, Erişim adresi https://tuikweb.tuik.gov.tr/MicroVeri/GYKA_Panel_2017/turkce/metaveri/oerneklemetasariimii/index.html
  • Vieira, J. A. C. (2005). Low-wage mobility in the Portuguese labour market. Portuguese Economic Journal, 4(1), 1-14.
There are 21 citations in total.

Details

Primary Language Turkish
Subjects Economics
Journal Section Articles
Authors

Selçuk Gemicioğlu 0000-0001-7952-5456

Hasan Şahin 0000-0001-5922-068X

Early Pub Date March 14, 2022
Publication Date June 5, 2022
Submission Date July 5, 2021
Acceptance Date November 23, 2021
Published in Issue Year 2022 Volume: 37 Issue: 2

Cite

APA Gemicioğlu, S., & Şahin, H. (2022). Türkiye İşgücü Piyasasında Düşük Ücret Kalıcılığı. İzmir İktisat Dergisi, 37(2), 460-480. https://doi.org/10.24988/ije.962469
İzmir Journal of Economics
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