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

Yıl 2013, Cilt: 2 Sayı: 3, 1 - 21, 01.09.2013

Öz

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.

Teşekkür

We thank Hakan Ercan, Ercan Uygur (the Editor), two anonymous referees, seminar participants at the Central Bank of the Republic of Turkey, and the participants in the BETAM/ World Bank Labor Market Network Meeting in Istanbul and the Turkish Economic Association Workshop on Economic Statistics in Ankara for their helpful comments and suggestions. The views expressed here are our own and do not necessarily reflect those of the Central Bank of the Republic of Turkey. All errors are ours.

Kaynakça

  • Acemoglu, D., (2001), “Good Jobs versus Bad Jobs,” Journal of Labor Economics, 19, pp. 1-22.
  • Akar, G., B. Balkan, and S. Tumen, (2013), “Firm Size and Gender Discrimination in the Labor Market: Theory and Evidence from Turkey,” Unpublished manuscript, Central Bank of the Republic of Turkey.
  • Altonji, J. G. and R. M. Blank, (1999), “Race and Gender in the Labor Market,” in O. Ashenfelter and D. Card, eds., Handbook of Labor Economics Vol. 3, New York, NY: Elsevier, Chap. 48, pp. 3143-3259.
  • Baker, G. P., M. Jensen, and K. J. Murphy, (1988), “Compensation and Incentives: Practice vs. Theory,” Journal of Finance, 43, pp. 593-615.
  • Balkan, B., Y. S. Baskaya, and S. Tumen, (2014), “Evaluating the Impact of the Post-2008 Employment Subsidy Program in Turkey,” Unpublished manuscript, Central Bank of the Republic of Turkey.
  • Balkan, B. and S. Tumen, (2013), “Firm-Size Wage Gaps along the Formal-Informal Divide: Theory and Evidence,” BETAM Working Paper No.12.
  • Becker, G. S., (1971), The Economics of Discrimination, Chicago, IL: University of Chicago Press, 2nd ed.
  • Bernard, A. B. and J. B. Jensen, (1995), “Exporters, Jobs, and Wages in U.S. Manufacturing: 1976-1987,” Brookings Papers on Economic Activity, 1995, pp. 67-119.
  • Bertrand, M., (2011), “New Perspectives on Gender,” in O. Ashenfelter and D. Card, eds., Handbook of Labor Economics Vol. 4, New York, NY: Elsevier, Chap. 17, pp. 1543-1590.
  • Brown, C. and J. Medoff, (1989), “The Employer Size-Wage Effect,” Journal of Political Economy, 97, pp. 1027-1057.
  • Brunello, G. and A. Colussi, (1998), “The Employer Size-Wage Effect: Evidence from Italy,” Labor Economics, 5, pp. 217-230.
  • Chay, K. Y., (1998), “The Impact of Federal Civil-Rights Policy on Black Economic Progress: Evidence from the Equal Employment Opportunity Act of 1972”, Industrial and Labor Relations Review, 51, pp. 608-632.
  • Dickens, W. T. and K. Lang, (1985), “A Test of Dual Labor Market Theory,” American Economic Review, 75, pp. 792-805.
  • Fields, G., (1990), “Labor Market Modeling and the Urban Informal Sector: Theory and Evidence,” in B. Salome, A. Schwarz, and D. Turnham, eds., The Informal Sector Revisited, Paris: OECD.
  • Fox, J. T., (2009), “Firm-Size Wage Gaps, Job Responsibility, and Hierarchical Matching,” Journal of Labor Economics, 27, pp. 83-126.
  • Groshen, E., (1991), “Sources of Intra-Industry Wage Dispersion: How Much Do Employers Matter?” Quarterly Journal of Economics, 106, pp. 869-884.
  • Heckman, J. J. and J. V. Hotz, (1986), “An Investigation of the Labor Market Earnings of Panamanian Males, Evaluating the Sources of Inequality,” Journal of Human Resources, 21, pp. 507-542.
  • Heckman, J. J., L. J. Lochner, and P. E. Todd, (2006), “Earnings Functions, Rates of Return, and Treatment Effects: The Mincer Equation and Beyond,” in E. A. Hanushek and F. Welch, eds., Handbook of the Economics of Education, New York: Elsevier, pp. 307-458.
  • Heinze, E. and E. Wolf, (2006), “Gender Earnings Gap in German Firms: The Impact of Firm Characteristics and Institutions,” ZEW Discussion Paper 06-020.
  • Hollister, M. N., (2004), “Does Firm Size Matter Anymore? The New Economy and Firm-Size Wage Effects,” American Sociological Review, 69, pp. 659-676.
  • Holzer, H. J., (1998), “Why Do Small Establishments Hire Fewer Blacks Than Large Ones?” Journal of Human Resources, 33, pp. 896-914.
  • Idson, T. L., (1996), “Employer Size and Labor Turnover,” Research in Labor Economics, 15, pp. 273–304.
  • Idson, T. L. and D. J. Feaster, (1990), “A Selectivity Model of Employer-Size Wage Differentials,” Journal of Labor Economics, 8, pp. 99–122.
  • Idson, T. L. and W. Y. Oi, (1999), “Workers are More Productive in Large Firms,” American Economic Review, 89, pp. 104–108.
  • Lallemand, T., R. Plasman, and F. Rycx, (2007), “The Establishment-Size Wage Premium: Evidence from European Countries,” Empirica, 34, pp. 427-451.
  • Lang, K., (1991), “Persistent Wage Dispersion and Involuntary Unemployment,” Quarterly Journal of Economics, 106, pp. 181-202.
  • Lang, K. and J.-Y. K. Lehmann, (2012), “Racial Discrimination in the Labor Market: Theory and Empirics,” Journal of Economic Literature, 50, pp. 959-1006.
  • Lang, K. and M. Manove, (2011), “Education and Labor-Market Discrimination,” American Economic Review, 101, pp. 1467-1496.
  • Lang, K., M. Manove, and W. T. Dickens, (2005), “Racial Discrimination in Labor Markets with Posted Wage Offers,” American Economic Review, 95, pp. 1327-1340.
  • Lemieux, T., (2006), “The ‘Mincer Equation’ Thirty Years after Schooling, Experience, and Earnings,” in S. Grossbard, ed., Jacob Mincer: A Pioneer of Modern Labor Economics, New York, NY: Springer, Chap. 11, pp. 127-145.
  • Magnac, T., (1991), “Segmented or Competitive Labor Markets,” Econometrica, 59, 165-187.
  • Marcouiller, D., V. Ruiz de Castilla, and C. Woodruff, (1997), “Formal Measures of the Informal-Sector Wage Gap in Mexico, El Salvador and Peru,” Economic Development and Cultural Change, 45, pp. 367-392.
  • Meagher, K. J. and H. Wilson, (2004), “Different Firm Size Effects on Wages for Supervisors and Workers,” Economics Letters, 84, pp. 225-230.
  • Mellow, W., (1982), “Employer Size and Wages,” Review of Economics and Statistics, 64, pp. 341-345.
  • Mincer, J., (1958), “Investment in Human Capital and Personal Income Distribution,” Journal of Political Economy, 66, pp. 281-302.
  • Mincer, J., (1974), Schooling, Experience, and Earnings, New York: Columbia University Press.
  • Montgomery, J. D. (1991), “Equilibrium Wage Dispersion and Inter-industry Wage Differentials,” Quarterly Journal of Economics, 106, pp. 163-179.
  • Oi, W. Y. and T. L. Idson, (1999), “Firm Size and Wages,” in O. Ashenfelter and D. Card, eds., Handbook of Labor Economics Vol.3, New York, NY: Elsevier, Chap. 33, pp. 2165-2214. Rauch, J. E., (1991), “Modeling the Informal Sector Formally,” Journal of Development Economics, 35, pp. 33-47.
  • Smith, J. P. and F. R. Welch, (1984), “Affirmative Action and Labor Markets,” Journal of Labor Economics, 2, pp. 269-301.
  • Sorensen, J. B., (2004), “The Organizational Demography of Racial Employment Segregation,” American Journal of Sociology, 110, pp. 626-671.
  • Stiglitz, J. E., (1976), “The Efficiency Wage Hypothesis, Surplus Labor, and the Distribution of Labor in LDCs,” Oxford Economic Papers, 28, pp. 185-207. Tan, H. and G. Batra, (1997), “Technology and Firm-Size Wage Differentials in Colombia, Mexico, and Taiwan (China),” World Bank Economic Review, 11, pp. 59-83.
  • Tansel, A., (1996), “Self-Employment, Wage Employment, and Returns to Education for Urban Men and Women in Turkey,” in Tuncer Bulutay, ed., Education and the Labor Market in Turkey, State Institute of Statistics, Ankara. pp. 175-208.
  • Tansel, A., (1997), “Informal-Sector Earnings Determination in Turkey,” Regional Trade, Finance, and Labor Markets in Transition, ERF, Conference Proceedings, September, 7-9, Beirut, Lebanon: pp. 153-161.
  • Tansel, A., (2000), “Wage Earners, Self Employed, and Gender in the Informal Sector in Turkey,” World Bank Policy Research Report on Gender and Development, No. 24.
  • Tansel, A. and E. O. Kan, (2012), “The Formal/Informal Employment Earnings Gap: Evidence from Turkey,” IZA Discussion Paper No. 6556.
  • Troske, K. R., (1999), “Evidence on the Employer Size-Wage Premium from Worker-Establishment Matched Data,” Review of Economics and Statistics, 81, pp. 15-26.

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

Yıl 2013, Cilt: 2 Sayı: 3, 1 - 21, 01.09.2013

Öz

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.

Kaynakça

  • Acemoglu, D., (2001), “Good Jobs versus Bad Jobs,” Journal of Labor Economics, 19, pp. 1-22.
  • Akar, G., B. Balkan, and S. Tumen, (2013), “Firm Size and Gender Discrimination in the Labor Market: Theory and Evidence from Turkey,” Unpublished manuscript, Central Bank of the Republic of Turkey.
  • Altonji, J. G. and R. M. Blank, (1999), “Race and Gender in the Labor Market,” in O. Ashenfelter and D. Card, eds., Handbook of Labor Economics Vol. 3, New York, NY: Elsevier, Chap. 48, pp. 3143-3259.
  • Baker, G. P., M. Jensen, and K. J. Murphy, (1988), “Compensation and Incentives: Practice vs. Theory,” Journal of Finance, 43, pp. 593-615.
  • Balkan, B., Y. S. Baskaya, and S. Tumen, (2014), “Evaluating the Impact of the Post-2008 Employment Subsidy Program in Turkey,” Unpublished manuscript, Central Bank of the Republic of Turkey.
  • Balkan, B. and S. Tumen, (2013), “Firm-Size Wage Gaps along the Formal-Informal Divide: Theory and Evidence,” BETAM Working Paper No.12.
  • Becker, G. S., (1971), The Economics of Discrimination, Chicago, IL: University of Chicago Press, 2nd ed.
  • Bernard, A. B. and J. B. Jensen, (1995), “Exporters, Jobs, and Wages in U.S. Manufacturing: 1976-1987,” Brookings Papers on Economic Activity, 1995, pp. 67-119.
  • Bertrand, M., (2011), “New Perspectives on Gender,” in O. Ashenfelter and D. Card, eds., Handbook of Labor Economics Vol. 4, New York, NY: Elsevier, Chap. 17, pp. 1543-1590.
  • Brown, C. and J. Medoff, (1989), “The Employer Size-Wage Effect,” Journal of Political Economy, 97, pp. 1027-1057.
  • Brunello, G. and A. Colussi, (1998), “The Employer Size-Wage Effect: Evidence from Italy,” Labor Economics, 5, pp. 217-230.
  • Chay, K. Y., (1998), “The Impact of Federal Civil-Rights Policy on Black Economic Progress: Evidence from the Equal Employment Opportunity Act of 1972”, Industrial and Labor Relations Review, 51, pp. 608-632.
  • Dickens, W. T. and K. Lang, (1985), “A Test of Dual Labor Market Theory,” American Economic Review, 75, pp. 792-805.
  • Fields, G., (1990), “Labor Market Modeling and the Urban Informal Sector: Theory and Evidence,” in B. Salome, A. Schwarz, and D. Turnham, eds., The Informal Sector Revisited, Paris: OECD.
  • Fox, J. T., (2009), “Firm-Size Wage Gaps, Job Responsibility, and Hierarchical Matching,” Journal of Labor Economics, 27, pp. 83-126.
  • Groshen, E., (1991), “Sources of Intra-Industry Wage Dispersion: How Much Do Employers Matter?” Quarterly Journal of Economics, 106, pp. 869-884.
  • Heckman, J. J. and J. V. Hotz, (1986), “An Investigation of the Labor Market Earnings of Panamanian Males, Evaluating the Sources of Inequality,” Journal of Human Resources, 21, pp. 507-542.
  • Heckman, J. J., L. J. Lochner, and P. E. Todd, (2006), “Earnings Functions, Rates of Return, and Treatment Effects: The Mincer Equation and Beyond,” in E. A. Hanushek and F. Welch, eds., Handbook of the Economics of Education, New York: Elsevier, pp. 307-458.
  • Heinze, E. and E. Wolf, (2006), “Gender Earnings Gap in German Firms: The Impact of Firm Characteristics and Institutions,” ZEW Discussion Paper 06-020.
  • Hollister, M. N., (2004), “Does Firm Size Matter Anymore? The New Economy and Firm-Size Wage Effects,” American Sociological Review, 69, pp. 659-676.
  • Holzer, H. J., (1998), “Why Do Small Establishments Hire Fewer Blacks Than Large Ones?” Journal of Human Resources, 33, pp. 896-914.
  • Idson, T. L., (1996), “Employer Size and Labor Turnover,” Research in Labor Economics, 15, pp. 273–304.
  • Idson, T. L. and D. J. Feaster, (1990), “A Selectivity Model of Employer-Size Wage Differentials,” Journal of Labor Economics, 8, pp. 99–122.
  • Idson, T. L. and W. Y. Oi, (1999), “Workers are More Productive in Large Firms,” American Economic Review, 89, pp. 104–108.
  • Lallemand, T., R. Plasman, and F. Rycx, (2007), “The Establishment-Size Wage Premium: Evidence from European Countries,” Empirica, 34, pp. 427-451.
  • Lang, K., (1991), “Persistent Wage Dispersion and Involuntary Unemployment,” Quarterly Journal of Economics, 106, pp. 181-202.
  • Lang, K. and J.-Y. K. Lehmann, (2012), “Racial Discrimination in the Labor Market: Theory and Empirics,” Journal of Economic Literature, 50, pp. 959-1006.
  • Lang, K. and M. Manove, (2011), “Education and Labor-Market Discrimination,” American Economic Review, 101, pp. 1467-1496.
  • Lang, K., M. Manove, and W. T. Dickens, (2005), “Racial Discrimination in Labor Markets with Posted Wage Offers,” American Economic Review, 95, pp. 1327-1340.
  • Lemieux, T., (2006), “The ‘Mincer Equation’ Thirty Years after Schooling, Experience, and Earnings,” in S. Grossbard, ed., Jacob Mincer: A Pioneer of Modern Labor Economics, New York, NY: Springer, Chap. 11, pp. 127-145.
  • Magnac, T., (1991), “Segmented or Competitive Labor Markets,” Econometrica, 59, 165-187.
  • Marcouiller, D., V. Ruiz de Castilla, and C. Woodruff, (1997), “Formal Measures of the Informal-Sector Wage Gap in Mexico, El Salvador and Peru,” Economic Development and Cultural Change, 45, pp. 367-392.
  • Meagher, K. J. and H. Wilson, (2004), “Different Firm Size Effects on Wages for Supervisors and Workers,” Economics Letters, 84, pp. 225-230.
  • Mellow, W., (1982), “Employer Size and Wages,” Review of Economics and Statistics, 64, pp. 341-345.
  • Mincer, J., (1958), “Investment in Human Capital and Personal Income Distribution,” Journal of Political Economy, 66, pp. 281-302.
  • Mincer, J., (1974), Schooling, Experience, and Earnings, New York: Columbia University Press.
  • Montgomery, J. D. (1991), “Equilibrium Wage Dispersion and Inter-industry Wage Differentials,” Quarterly Journal of Economics, 106, pp. 163-179.
  • Oi, W. Y. and T. L. Idson, (1999), “Firm Size and Wages,” in O. Ashenfelter and D. Card, eds., Handbook of Labor Economics Vol.3, New York, NY: Elsevier, Chap. 33, pp. 2165-2214. Rauch, J. E., (1991), “Modeling the Informal Sector Formally,” Journal of Development Economics, 35, pp. 33-47.
  • Smith, J. P. and F. R. Welch, (1984), “Affirmative Action and Labor Markets,” Journal of Labor Economics, 2, pp. 269-301.
  • Sorensen, J. B., (2004), “The Organizational Demography of Racial Employment Segregation,” American Journal of Sociology, 110, pp. 626-671.
  • Stiglitz, J. E., (1976), “The Efficiency Wage Hypothesis, Surplus Labor, and the Distribution of Labor in LDCs,” Oxford Economic Papers, 28, pp. 185-207. Tan, H. and G. Batra, (1997), “Technology and Firm-Size Wage Differentials in Colombia, Mexico, and Taiwan (China),” World Bank Economic Review, 11, pp. 59-83.
  • Tansel, A., (1996), “Self-Employment, Wage Employment, and Returns to Education for Urban Men and Women in Turkey,” in Tuncer Bulutay, ed., Education and the Labor Market in Turkey, State Institute of Statistics, Ankara. pp. 175-208.
  • Tansel, A., (1997), “Informal-Sector Earnings Determination in Turkey,” Regional Trade, Finance, and Labor Markets in Transition, ERF, Conference Proceedings, September, 7-9, Beirut, Lebanon: pp. 153-161.
  • Tansel, A., (2000), “Wage Earners, Self Employed, and Gender in the Informal Sector in Turkey,” World Bank Policy Research Report on Gender and Development, No. 24.
  • Tansel, A. and E. O. Kan, (2012), “The Formal/Informal Employment Earnings Gap: Evidence from Turkey,” IZA Discussion Paper No. 6556.
  • Troske, K. R., (1999), “Evidence on the Employer Size-Wage Premium from Worker-Establishment Matched Data,” Review of Economics and Statistics, 81, pp. 15-26.
Toplam 46 adet kaynakça vardır.

Ayrıntılar

Birincil Dil Türkçe
Konular Ekonomi
Bölüm Araştırma Makaleleri
Yazarlar

Gizem Akar Bu kişi benim

Binnur Balkan Bu kişi benim

Semih Tümen Bu kişi benim

Yayımlanma Tarihi 1 Eylül 2013
Yayımlandığı Sayı Yıl 2013 Cilt: 2 Sayı: 3

Kaynak Göster

APA Akar, G., Balkan, B., & Tümen, S. (2013). Overview of Firm-Size and Gender Pay Gaps in Turkey: The Role of Informal Employment. Ekonomi-Tek, 2(3), 1-21.