Research Article
BibTex RIS Cite

Year 2024, Volume: 8 Issue: 2, 145 - 165, 29.10.2024

Sinem Sefil Tansever

Abstract

References

  • Aslan, G. (2019). Türkiye’de asgari ücretli çalışan sayısı ve ücret seviyelerinin değişimi (2003-2017 hanehalkı işgücü anketleri veri analizi). Sosyal Güvenlik Dergisi, 9(1), 141-159.
  • Autor, D. H., Manning, A., & Smith, C. L. (2016). The contribution of the minimum wage to US wage inequality over three decades: a reassessment. American Economic Journal: Applied Economics, 8(1), 58-99.
  • Autor, D. H., Katz, L. F., & Kearney, M. S. (2008). Trends in US wage inequality: Revising the revisionists. The Review of economics and statistics, 90(2), 300-323.
  • Bakis, O., Hisarciklilar, M., & Filiztekin, A. (2015). The Impact of a Minimum-Wage Increase on Employment and School Enrollment: Evidence from Turkey. In Koc University EAF Conference Paper.
  • Bakis, O., & Polat, S. (2015). Wage inequality in Turkey, 2002–10. Economics of Transition, 23(1), 169-212.
  • Bosch, M., & Manacorda, M. (2010). Minimum wages and earnings inequality in urban Mexico. American Economic Journal: Applied Economics, 2(4), 128-149.
  • Bossavie, L., Acar, A., & Makovec, M. (2019). Do Firms Exit the Formal Economy after a Minimum Wage Hike?. The World Bank Policy Research Working Paper Series, 8749.
  • Bossler, M., & Schank, T. (2023). Wage inequality in Germany after the minimum wage introduction. Journal of Labor Economics, 41(3), 000-000.
  • Brown, C. (1999). Minimum wages, employment, and the distribution of income. Handbook of labor economics, 3, 2101-2163.
  • Butcher, T., Dickens, R., & Manning, A. (2012). Minimum wages and wage inequality: some theory and an application to the UK. LSE Working Papers.
  • Caliendo, M., Fedorets, A., Preuss, M., Schröder, C., & Wittbrodt, L. (2017). The short-term distributional effects of the German minimum wage reform.
  • Caliendo, M., Fedorets, A., Preuss, M., Schröder, C., & Wittbrodt, L. (2018). The short-run employment effects of the German minimum wage reform. Labour Economics, 53, 46-62.
  • Card, D. (1992). Using regional variation in wages to measure the effects of the federal minimum wage. Ilr Review, 46(1), 22-37.
  • Card, D., & Krueger, A. B. (1994). A Living Wage? The Effects of the Minimum Wage on the Distribution of Wages, the Distribution of Family Earnings, and Poverty (No. 712).
  • Card, D., & Krueger, A. B. (1995). Time-series minimum-wage studies: a meta-analysis. The American Economic Review, 85(2), 238-243.
  • Dağlıoğlu, S. & Bakır, M. (2015). Türkiye’de Asgari Ücretin İstihdam Üzerindeki Etkisinin Sektörel Panel Regresyon Modelleri İle İncelenmesi. Sosyal Güvence, 0 (8), 35-68. Retrieved from https://dergipark. org.tr/en/pub/sosyalguvence/issue/16501/172279
  • Dickens, R., & Manning, A. (2004). Has the national minimum wage reduced UK wage inequality?. Journal of the Royal Statistical Society Series A: Statistics in Society, 167(4), 613-626.
  • DiNardo, J., Fortin, N. M., & Lemieux, T. (1996). Labor Market Institutions and the Distribution of Wages, 1973-1992: A Semiparametric Approach. Econometrica, 64(5), 1001–1044. https://doi. org/10.2307/2171954
  • Dolton, P., Bondibene, C. R., & Stops, M. (2015). Identifying the employment effect of invoking and changing the minimum wage: A spatial analysis of the UK. Labour Economics, 37, 54-76.
  • Ekşi, O., & Kırdar, M. G. (2015). Emek gelirlerinin ve eşitsizliğinin Türkiye için bir analizi: 2002-2011 (No. 2015/2). Discussion Paper.
  • Engbom, N., & Moser, C. (2022). Earnings inequality and the minimum wage: Evidence from Brazil. American Economic Review, 112(12), 3803-3847.
  • Firpo, S., Fortin, N. M., & Lemieux, T. (2009). Unconditional quantile regressions. Econometrica, 77(3), 953- 973.
  • Fortin, N. M., & Lemieux, T. (2000). Income redistribution in Canada: minimum wages versus other policy instruments. Adapting Public Policy to a Labour Market in Transition, 211-244.
  • Gürcihan-Yüncüler, B., & Yüncüler, Ç. (2016). Minimum Wage Effects on Labor Market Outcomes in Turkey. Research and Monetary Policy Department, Central Bank of the Republic of Turkey.
  • Gürsel, S., Bakış, O., & Genç, Y. (2018). Asgari ücret artışı özellikle düşük ücretli sektörlerde çalışan erkekleri kayıt dışı çalışmaya yöneltti (No. 231). BETAM Working Paper.
  • Güven, A., Mollavelioğlu, M. Ş., & Dalgıç, B. Ç. (2011). Asgari ücret istihdamı arttırır mı? 1969-2008 Türkiye örneği. ODTÜ Gelişme Dergisi.
  • ILO. (2021). Global Wage Report 2020-21: Factsheet for the European Union (EU-27). International Labour Organization.
  • Işık, E., Orhangazi, Ö., & Tekgüç, H. (2020). Heterogeneous effects of minimum wage on labor market outcomes: A case study from Turkey. IZA Journal of Labor Policy, 10(1).
  • Kahveci, M., & Pelek, S. (2021). Asgari ücret ve politika: asgari ücreti seçimler mi belirliyor?. Amme İdaresi Dergisi, 54(1).
  • Khurana, S., Mahajan, K., & Sen, K. (2023). Minimum wages and changing wage inequality in India (No. wp- 2023-67). World Institute for Development Economic Research (UNU-WIDER).
  • Lee, D. S. (1999). Wage inequality in the United States during the 1980s: Rising dispersion or falling minimum wage?. The quarterly journal of economics, 114(3), 977-1023.
  • Levin-Waldman, O. M. (2018). Restoring the middle class through wage policy: arguments for a minimum wage. Springer.
  • Lin, C., & Yun, M. S. (2016). The effects of the minimum wage on earnings inequality: Evidence from China. In Income Inequality Around the World (pp. 179-212). Emerald Group Publishing Limited.
  • Lombardo, C. I., Ramírez-Leira, L., & Gasparini, L. C. (2022). Does the minimum wage affect wage inequality?. Documentos de Trabajo del CEDLAS.
  • Machin, S., & Manning, A. (1994). The effects of minimum wages on wage dispersion and employment: Evidence from the UK Wages Councils. ILR Review, 47(2), 319-329.
  • Machin, S., & Manning, A. (1997). Minimum wages and economic outcomes in Europe. European Economic Review, 41(3-5), 733-742.Bakis, O., & Polat, S. (2023). Wage inequality dynamics in Turkey. Empirica, 1-38.
  • Manning, A. (2011) ‘Minimum Wages and Wage Inequality’, in David Marsden (ed.), Employment in the Lean Years: Policy and Prospects for the Next Decade (Oxford, 2011; online edn, Oxford Academic, 20 Apr. 2015), https://doi.org/10.1093/acprof:osobl/978.019.9605439.003.0010, accessed 31 Oct. 2023.
  • Neumark, D., & Wascher, W. L. (2008). Minimum wages. MIT press. Öztürk, O. D. (2007). Employment effects of minimum wages in inflexible labor markets. Available at SSRN 1113175.
  • Papps, K. L. (2012). The effects of social security taxes and minimum wages on employment: Evidence from Turkey. ILR Review, 65(3), 686-707.
  • Pelek, S. (2013). The impact of the minimum wage on the wage distribution: Evidence from Turkey. Galatasaray University Economic Research Center Working Papers, (13-08).
  • Pelek, S. (2015). The employment effect of the minimum wage: an empirical analysis from Turkey. Ekonomi- tek, 4(1), 49-68.
  • Rubery, J. (2003). Pay equity, minimum wage and equality at work. Geneva: ILO.
  • Sotomayor, O. J. (2021). Can the minimum wage reduce poverty and inequality in the developing world? Evidence from Brazil. World Development, 138, 105182.
  • Stewart, M. B. (2002). Estimating the impact of the minimum wage using geographical wage variation. oxford Bulletin of Economics and Statistics, 64, 583-605.
  • Stewart, M. B. (2012). Wage inequality, minimum wage effects, and spillovers. Oxford Economic Papers, 64(4), 616-634.
  • Tamkoç, M. N., & Torul, O. (2020). Cross-sectional facts for macroeconomists: wage, income and consumption inequality in turkey. The Journal of Economic Inequality, 18(2), 239-259.
  • Teulings, C. N. (2003). The contribution of minimum wages to increasing wage inequality. The Economic Journal, 113(490), 801-833.
  • Vandekerckhove, S., Goos, M., & Van Gyes, G. (2018). The effect of minimum wage spillovers on wage dispersion in a strongly institutionalized wage bargaining system (No. 5, p. 26). Working Paper.
  • Wittbrodt, L. (2022). Minimum wage effects in Germany and Europe–four essays (Doctoral dissertation, Universität Potsdam).
  • Yolvermez, B. (2020). Türkiye’de Asgari Ücret Sorunlarına İlişkin Bir Değerlendirme. Çalışma ve Toplum, 4(67), 2441-2462.

ASSESSING THE DISTRIBUTIVE EFFECTS OF MINIMUM WAGE: EVIDENCE FROM TURKEY

Year 2024, Volume: 8 Issue: 2, 145 - 165, 29.10.2024

Sinem Sefil Tansever

Abstract

This study explores the effects of the 2016 minimum wage hike in Turkey on wage distribution up to 2022 by using a difference-in-differences methodology. This approach employs unconditional quantile regressions by utilizing variation in the bite of the minimum wage across NUTS2 regions in Turkey and uses data from the Turkish Household Labor Force Survey (HLSF). The findings indicate that the 2016 minimum wage increase positively affects wages in the lower quantiles while having a negative impact on wages in the higher quantiles. Consequently, this leads to a wage compression effect, ultimately resulting in a reduction in wage inequality, as supported by descriptive analysis.

Keywords

minimum wage inequality wages

References

  • Aslan, G. (2019). Türkiye’de asgari ücretli çalışan sayısı ve ücret seviyelerinin değişimi (2003-2017 hanehalkı işgücü anketleri veri analizi). Sosyal Güvenlik Dergisi, 9(1), 141-159.
  • Autor, D. H., Manning, A., & Smith, C. L. (2016). The contribution of the minimum wage to US wage inequality over three decades: a reassessment. American Economic Journal: Applied Economics, 8(1), 58-99.
  • Autor, D. H., Katz, L. F., & Kearney, M. S. (2008). Trends in US wage inequality: Revising the revisionists. The Review of economics and statistics, 90(2), 300-323.
  • Bakis, O., Hisarciklilar, M., & Filiztekin, A. (2015). The Impact of a Minimum-Wage Increase on Employment and School Enrollment: Evidence from Turkey. In Koc University EAF Conference Paper.
  • Bakis, O., & Polat, S. (2015). Wage inequality in Turkey, 2002–10. Economics of Transition, 23(1), 169-212.
  • Bosch, M., & Manacorda, M. (2010). Minimum wages and earnings inequality in urban Mexico. American Economic Journal: Applied Economics, 2(4), 128-149.
  • Bossavie, L., Acar, A., & Makovec, M. (2019). Do Firms Exit the Formal Economy after a Minimum Wage Hike?. The World Bank Policy Research Working Paper Series, 8749.
  • Bossler, M., & Schank, T. (2023). Wage inequality in Germany after the minimum wage introduction. Journal of Labor Economics, 41(3), 000-000.
  • Brown, C. (1999). Minimum wages, employment, and the distribution of income. Handbook of labor economics, 3, 2101-2163.
  • Butcher, T., Dickens, R., & Manning, A. (2012). Minimum wages and wage inequality: some theory and an application to the UK. LSE Working Papers.
  • Caliendo, M., Fedorets, A., Preuss, M., Schröder, C., & Wittbrodt, L. (2017). The short-term distributional effects of the German minimum wage reform.
  • Caliendo, M., Fedorets, A., Preuss, M., Schröder, C., & Wittbrodt, L. (2018). The short-run employment effects of the German minimum wage reform. Labour Economics, 53, 46-62.
  • Card, D. (1992). Using regional variation in wages to measure the effects of the federal minimum wage. Ilr Review, 46(1), 22-37.
  • Card, D., & Krueger, A. B. (1994). A Living Wage? The Effects of the Minimum Wage on the Distribution of Wages, the Distribution of Family Earnings, and Poverty (No. 712).
  • Card, D., & Krueger, A. B. (1995). Time-series minimum-wage studies: a meta-analysis. The American Economic Review, 85(2), 238-243.
  • Dağlıoğlu, S. & Bakır, M. (2015). Türkiye’de Asgari Ücretin İstihdam Üzerindeki Etkisinin Sektörel Panel Regresyon Modelleri İle İncelenmesi. Sosyal Güvence, 0 (8), 35-68. Retrieved from https://dergipark. org.tr/en/pub/sosyalguvence/issue/16501/172279
  • Dickens, R., & Manning, A. (2004). Has the national minimum wage reduced UK wage inequality?. Journal of the Royal Statistical Society Series A: Statistics in Society, 167(4), 613-626.
  • DiNardo, J., Fortin, N. M., & Lemieux, T. (1996). Labor Market Institutions and the Distribution of Wages, 1973-1992: A Semiparametric Approach. Econometrica, 64(5), 1001–1044. https://doi. org/10.2307/2171954
  • Dolton, P., Bondibene, C. R., & Stops, M. (2015). Identifying the employment effect of invoking and changing the minimum wage: A spatial analysis of the UK. Labour Economics, 37, 54-76.
  • Ekşi, O., & Kırdar, M. G. (2015). Emek gelirlerinin ve eşitsizliğinin Türkiye için bir analizi: 2002-2011 (No. 2015/2). Discussion Paper.
  • Engbom, N., & Moser, C. (2022). Earnings inequality and the minimum wage: Evidence from Brazil. American Economic Review, 112(12), 3803-3847.
  • Firpo, S., Fortin, N. M., & Lemieux, T. (2009). Unconditional quantile regressions. Econometrica, 77(3), 953- 973.
  • Fortin, N. M., & Lemieux, T. (2000). Income redistribution in Canada: minimum wages versus other policy instruments. Adapting Public Policy to a Labour Market in Transition, 211-244.
  • Gürcihan-Yüncüler, B., & Yüncüler, Ç. (2016). Minimum Wage Effects on Labor Market Outcomes in Turkey. Research and Monetary Policy Department, Central Bank of the Republic of Turkey.
  • Gürsel, S., Bakış, O., & Genç, Y. (2018). Asgari ücret artışı özellikle düşük ücretli sektörlerde çalışan erkekleri kayıt dışı çalışmaya yöneltti (No. 231). BETAM Working Paper.
  • Güven, A., Mollavelioğlu, M. Ş., & Dalgıç, B. Ç. (2011). Asgari ücret istihdamı arttırır mı? 1969-2008 Türkiye örneği. ODTÜ Gelişme Dergisi.
  • ILO. (2021). Global Wage Report 2020-21: Factsheet for the European Union (EU-27). International Labour Organization.
  • Işık, E., Orhangazi, Ö., & Tekgüç, H. (2020). Heterogeneous effects of minimum wage on labor market outcomes: A case study from Turkey. IZA Journal of Labor Policy, 10(1).
  • Kahveci, M., & Pelek, S. (2021). Asgari ücret ve politika: asgari ücreti seçimler mi belirliyor?. Amme İdaresi Dergisi, 54(1).
  • Khurana, S., Mahajan, K., & Sen, K. (2023). Minimum wages and changing wage inequality in India (No. wp- 2023-67). World Institute for Development Economic Research (UNU-WIDER).
  • Lee, D. S. (1999). Wage inequality in the United States during the 1980s: Rising dispersion or falling minimum wage?. The quarterly journal of economics, 114(3), 977-1023.
  • Levin-Waldman, O. M. (2018). Restoring the middle class through wage policy: arguments for a minimum wage. Springer.
  • Lin, C., & Yun, M. S. (2016). The effects of the minimum wage on earnings inequality: Evidence from China. In Income Inequality Around the World (pp. 179-212). Emerald Group Publishing Limited.
  • Lombardo, C. I., Ramírez-Leira, L., & Gasparini, L. C. (2022). Does the minimum wage affect wage inequality?. Documentos de Trabajo del CEDLAS.
  • Machin, S., & Manning, A. (1994). The effects of minimum wages on wage dispersion and employment: Evidence from the UK Wages Councils. ILR Review, 47(2), 319-329.
  • Machin, S., & Manning, A. (1997). Minimum wages and economic outcomes in Europe. European Economic Review, 41(3-5), 733-742.Bakis, O., & Polat, S. (2023). Wage inequality dynamics in Turkey. Empirica, 1-38.
  • Manning, A. (2011) ‘Minimum Wages and Wage Inequality’, in David Marsden (ed.), Employment in the Lean Years: Policy and Prospects for the Next Decade (Oxford, 2011; online edn, Oxford Academic, 20 Apr. 2015), https://doi.org/10.1093/acprof:osobl/978.019.9605439.003.0010, accessed 31 Oct. 2023.
  • Neumark, D., & Wascher, W. L. (2008). Minimum wages. MIT press. Öztürk, O. D. (2007). Employment effects of minimum wages in inflexible labor markets. Available at SSRN 1113175.
  • Papps, K. L. (2012). The effects of social security taxes and minimum wages on employment: Evidence from Turkey. ILR Review, 65(3), 686-707.
  • Pelek, S. (2013). The impact of the minimum wage on the wage distribution: Evidence from Turkey. Galatasaray University Economic Research Center Working Papers, (13-08).
  • Pelek, S. (2015). The employment effect of the minimum wage: an empirical analysis from Turkey. Ekonomi- tek, 4(1), 49-68.
  • Rubery, J. (2003). Pay equity, minimum wage and equality at work. Geneva: ILO.
  • Sotomayor, O. J. (2021). Can the minimum wage reduce poverty and inequality in the developing world? Evidence from Brazil. World Development, 138, 105182.
  • Stewart, M. B. (2002). Estimating the impact of the minimum wage using geographical wage variation. oxford Bulletin of Economics and Statistics, 64, 583-605.
  • Stewart, M. B. (2012). Wage inequality, minimum wage effects, and spillovers. Oxford Economic Papers, 64(4), 616-634.
  • Tamkoç, M. N., & Torul, O. (2020). Cross-sectional facts for macroeconomists: wage, income and consumption inequality in turkey. The Journal of Economic Inequality, 18(2), 239-259.
  • Teulings, C. N. (2003). The contribution of minimum wages to increasing wage inequality. The Economic Journal, 113(490), 801-833.
  • Vandekerckhove, S., Goos, M., & Van Gyes, G. (2018). The effect of minimum wage spillovers on wage dispersion in a strongly institutionalized wage bargaining system (No. 5, p. 26). Working Paper.
  • Wittbrodt, L. (2022). Minimum wage effects in Germany and Europe–four essays (Doctoral dissertation, Universität Potsdam).
  • Yolvermez, B. (2020). Türkiye’de Asgari Ücret Sorunlarına İlişkin Bir Değerlendirme. Çalışma ve Toplum, 4(67), 2441-2462.
There are 50 citations in total.

Details

Primary Language English
Subjects Applied Microeconometrics
Journal Section Makaleler
Authors

Sinem Sefil Tansever 0000-0001-7124-8618

Early Pub Date October 15, 2024
Publication Date October 29, 2024
Submission Date November 19, 2023
Acceptance Date May 29, 2024
Published in Issue Year 2024 Volume: 8 Issue: 2

Cite

APA Sefil Tansever, S. (2024). ASSESSING THE DISTRIBUTIVE EFFECTS OF MINIMUM WAGE: EVIDENCE FROM TURKEY. Journal of Research in Economics, 8(2), 145-165.
 Download Cover Image

Journal of Research in Economics is licensed under Creative Commons ATTRIBUTION-NONCOMMERCIAL-SHAREALIKE 4.0 INTERNATIONAL License (CC BY-NC-SA 4.0) 28137

JORE is indexed in 28139  28138