scholarly journals Heterogeneous effects of minimum wage on labor market outcomes: A case study from Turkey

2020 ◽  
Vol 10 (1) ◽  
Author(s):  
Enes Işık ◽  
Özgür Orhangazi ◽  
Hasan Tekgüç

AbstractWe assess the effects of a sharp minimum wage increase on wages, informality, and employment in Turkey, a large developing economy with one of the highest minimum wage-to-average wage ratios among OECD countries and widespread discrepancies between labor market outcomes of women and of men. We look at the quasi-experimental 2016 minimum wage increase and pay attention to identifying information coming from demographic groups. We find that the increase in the minimum wage had an economically substantial and statistically significant positive impact on wages. Despite the positive wage effects of the increase, we find no negative employment effects. However, we show that the minimum wage increase may have caused an increase in the share of informal employment among workers with less than tertiary education, especially for such workers working for small firms.

ILR Review ◽  
1992 ◽  
Vol 46 (1) ◽  
pp. 38-54 ◽  
Author(s):  
David Card

In July 1988, California's minimum wage rose from $3.35 to $4.25. During the previous year, 11% of workers in the state and 50% of California teenagers had earned less than the new state minimum. Using published data and samples from the Current Population Survey, the author compares changes in the labor market outcomes of California workers to the corresponding changes in a group of states with no increase in the minimum wage. The minimum wage increase raised the earnings of low-wage workers by 5–10%. Contrary to conventional predictions, however, there was no decline in teenage employment, or any relative loss of jobs in retail trade.


2020 ◽  
Author(s):  
Thomas Albert DiPrete ◽  
Joanna Chae

A large literature in both sociology and political science has theorized about the importance of skill formation systems for macroeconomic performance, for the transition from school to work, and for labor market outcomes. However, consensus on how countries fit into these theoretical groupings has been difficult, and empirical evidence that these groupings matter has been elusive. Focusing on labor market outcomes across twenty-one European countries, this paper demonstrates that the strength of linkage between specific educational outcomes and occupational destinations is an important source of these institutional effects. Stronger linkage is generally associated with higher relative earnings and greater chances of employment, though heterogeneity exists both across age and gender groupings and across educational levels. Country-level structure matters because it is related to the local linkage strength of pathways, even as there is considerable heterogeneity within countries in the coherence of pathways from educational outcomes to occupations. Pathway effects clearly matter, particularly in how they shape the consequences of working in an occupation that is well matched to one's educational level and field of study. The strongest evidence for macro-structural effects concerns the impact of macro-structure on the earnings gap between well-matched and not-well matched workers with non-tertiary and with upper tertiary education. The findings suggest that policies to improve labor market outcomes do not require wholesale transformations of a country's skill formation system, but instead can focus on improving pathway coherence one pathway at a time.


2013 ◽  
Vol 51 (2) ◽  
pp. 558-560

Etienne Wasmer of Sciences Po and LIEPP reviews, “The Minimum Wage and Labor Market Outcomes” by Christopher J. Flinn. The Econlit abstract of this book begins: “Presents a model based on search and bargaining to use in investigating the impact of a minimum wage on labor market outcomes. Discusses descriptive evidence on minimum wage effects; a model of minimum wage effects on labor market careers; labor market and welfare impacts of minimum wages; minimum wage effects on labor market outcomes—a selective survey; assessing the welfare impacts of actual changes in the minimum wage; econometric issues; model estimates and tests; optimal minimum wages; the on-the-job search; and heterogeneity. Flinn is Professor of Economics at New York University and Senior Research Fellow at Collegio Carlo Alberto.”


2020 ◽  
Vol 0 (0) ◽  
Author(s):  
Gergely Horváth

AbstractThis paper studies the impact of marital status on job finding in China using the correspondence methodology. Fictitious CVs are sent to job advertisements through an online job board website, focusing on financial and accounting jobs, and the callback rate is measured. We vary the gender and marital status on otherwise identical CVs. The previous literature suggests that being married has a negative impact on the labor market outcomes of females, but a positive impact for males. In contrast, for the Chinese labor market, we do not find a significant effect of marital status on job finding for either gender.


Sign in / Sign up

Export Citation Format

Share Document