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

Date

2013-9-01

Author

Akar, Gizem
Balkan, Binnur
Tümen, Semih

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This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

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This paper documents two new findings 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.

Subject Keywords

Informal employment, Wage differentials, Firm size, Gender discrimination, THLFS, Turkish Household Labor Force Survey

URI

https://dergipark.org.tr/tr/pub/ekonomitek/issue/61955/927102
https://hdl.handle.net/11511/114999

Collections

Department of Economics, Article