Defining and Measuring Informality: The Case of Turkish Labor Market

Year 2016, Volume: 24 Issue: 28, - , 14.04.2016

Elif Acar , Aysıt Tansel

https://doi.org/10.17233/se.89776

Cited By: 6

Abstract

In this study, we consider how informality can be defined and measured in the Turkish labor market. The empirical analysis consists of developing three alternative definitions of labor informality, and exploring the relevance and implications of each for the Turkish labor market using descriptive statistics and multivariate probit analysis of the likelihood of informality under each definition. We find that social security registration criterion is a better measure of informality in the Turkish labor market given its ability to capture key relationships between several individual and employment characteristics and the likelihood of informality.

Keywords

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