Wage Earners, Self-Employed and Gender in the Informal Sector in Turkey

47 Pages Posted: 26 Mar 2001

See all articles by Aysit Tansel

Aysit Tansel

Middle East Technical University (METU) - Department of Economics; IZA Institute of Labor Economics; Economic Research Forum (ERF)

Date Written: November 2000

Abstract

This study considers covered and uncovered wage earners and the self-employed. The analysis is carried out for men and women workers separately. 1994 Turkish Household Expenditure Survey is used first to examine how individuals are selected into the covered and uncovered wage earner and the self-employed categories. Next, selectivity-corrected wage equations are estimated to examine wage determination in these sectors. Oaxaca-Blinder decomposition of sector of work and male-female wage differentials are carried out. When controlled for the observed characteristics and sample selection for men, covered wage earners earn more than the uncovered wage earners and the self-employed. For the covered wage earners, men's expected wages are about twice higher than the women's wages. For the uncovered wage earners, men's wages are near parity with those of women. These results suggest segmentation for men along the formal and informal lines and substantial discrimination for women in the covered private sector.

Keywords: Informal sector, Wage Earners, Self-employed, Gender

JEL Classification: J16, J31, J42

Suggested Citation

Tansel, Aysit, Wage Earners, Self-Employed and Gender in the Informal Sector in Turkey (November 2000). Available at SSRN: https://ssrn.com/abstract=263275 or http://dx.doi.org/10.2139/ssrn.263275

Aysit Tansel (Contact Author)

Middle East Technical University (METU) - Department of Economics ( email )

Inonu Bulvari
Ankara 06800
Turkey
90 312 210 2073 (Phone)
90 312 210 7964 (Fax)

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Economic Research Forum (ERF) ( email )

21 Al-Sad Al-Aaly St.
(P.O. Box: 12311)
Dokki, Cairo
Egypt

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