The Effects of youth minimum wage on labour market and schooling outcomes: evidence from Turkey

Küçükbayrak, Müşerref
This study analyzes the impact of youth minimum wage policy on labour market and schooling outcomes in Turkey based on a quasi-experimental approach. Before January 2014, minimum wage was determined according to the age of a worker. Young workers under 16 years of age were entitled to get a lower pay. This created a cut-off at the wages paid to workers based on this age. Differentiation of minimum wage was eliminated in 2014. Exploiting this cut-off, we use an RD design to study the effects of minimum wage for 15-16-year-old males on the outcomes variables for being employee, employment, unemployment, labour force participation, being in education and being neither in employment nor in education. We employ Survey of Income and Living Conditions in Turkey. Indeed, we take 12 months before and after the change in the minimum wage policy, thereby covering 2013 January- 2014 December. In this study, we develop two models. In the first one, we follow a conventional RD methodology. The second one extends the first by adding a difference-in-differences aspect to RD, thereby forming a difference-in-discontinuities model. Both models are compatible regarding the empirical findings. The results of the difference-in-discontinuities model suggest that change in probability of finding a job is 0.03-0.06 pp less for 15-year-old males from 2013 to 2014, relative to 16-year-old males. Moreover, change in probability of being in labour force is 0.01-0.03 pp less, but the change in probability of unemployment is 0.02-0.03 pp more for the younger group. This model also reveal that minimum pay encourages young males to attend school, but raises the incidence of being neither in employment nor in education among them.


Youth in the labor market and the transition from school to work in Turkey
İlhan, Bengi; Dayıoğlu Tayfur, Meltem; Tunalı, İnsan Tunalı; Department of Economics (2012)
In this thesis, we examine labor market outcomes for the youth (ages 15-29) using microdata from several rounds of the Turkish Household Labor Force Survey (HLFS). We begin by examining demographic trends. We then rely on synthetic cohorts. The fact that the HLFS sample frame targets the civilian non-institutional population brings about difficulties in interpreting labor market indicators. We show that a more reasonable picture of schooling and work choices emerges when a simple correction for ‘missing mal...
Tansel, Aysıt (2015-07-01)
In this study, we examine the formal/informal sector earnings differentials in the Turkish labor market using detailed econometric methodologies and a novel panel data set drawn from the 2006-2009 Income and Living Conditions Survey (SILC). In particular, we test if there is evidence of traditional segmented labor markets theory which postulates that informal workers are typically subject to lower remuneration than similar workers in the formal sector. Estimation of standard Mincer earnings equations at the...
Trends in female labor force participation in Turkey in the period 1988 – 2008: structural decomposition and factor content analyses
Munzur, Alaz Şafak; Voyvoda, Ebru; Saraçoğlu, Dürdane Şirin; Department of Economics (2011)
Female labor force participation rate in Turkey has been consistently lower than the participation rate in many of the similar developing countries. In addition to country specific factors that prevent increased participation of women, the Turkish economy has been passing through a liberalization program since 1980s which also affects the structure of female labor force in many aspects. The main objective of this thesis is to investigate the patterns in the position of women in the labor force during 1988 -...
The impact of household income on child labour in urban Turkey
Dayıoğlu Tayfur, Meltem (Informa UK Limited, 2006-08-01)
The aim of this study is to investigate the determinants of child labour in urban Turkey with a special reference to low household income or poverty as one of its root causes. Studies done elsewhere have produced mixed results which necessitate the relationship to be studied at country-level. The data from urban Turkey indicate that children from poorer families stand at a higher risk of employment. This finding is confirmed using various measures of household material well-being. Simulation results have fu...
The effect of squatter housing on income distribution in urban Turkey
Baslevent, C; Dayıoğlu Tayfur, Meltem (2005-01-01)
The purpose of this study is to examine the effect of home-ownership on income distribution in Turkey. Making use of raw data from an official income distribution survey which provides information on cash and in-kind incomes of household members and imputed rents for home-owners, it is found that home-ownership has an equalising effect on income distribution in the urban areas of Turkey. This result is attributed to the fact that many low-income families reside in squatter housing built at the outskirts of ...
Citation Formats
M. Küçükbayrak, “The Effects of youth minimum wage on labour market and schooling outcomes: evidence from Turkey,” Ph.D. - Doctoral Program, Middle East Technical University, 2018.