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Wage Penalty for Temporary Workers in Turkey: Evidence From Quantile Regressions

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  • Anil Duman

Abstract

The paper estimates the wage gap between employees with different contract types in Turkey. We first employ a quantile regression method and then decompose wage differentials along the distribution. Our results indicate that nonpermanent contract holders are more common among the low‐skilled and low‐wage group. The findings imply a non‐monotone pattern in Turkey where both sticky floor and glass ceiling effects are observable. These effects are persistent over time as both bottom‐ and top‐earner temporary workers are penalized, and the wage gap displays almost no change for each group. Also, from the quantile decomposition, we reveal that the wage gap for low earners is mainly attributable to labor market characteristics. On the other hand, returns are primarily responsible for explaining the wage gap for high earners, suggesting that they are subject to unfavorable conditions in the labor market.

Suggested Citation

  • Anil Duman, 2019. "Wage Penalty for Temporary Workers in Turkey: Evidence From Quantile Regressions," The Developing Economies, Institute of Developing Economies, vol. 57(4), pages 283-310, December.
    • Handle: RePEc:bla:deveco:v:57:y:2019:i:4:p:283-310
    DOI: 10.1111/deve.12206
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    Cited by:

    1. Duman, Anil, 2020. "Non-Standard Employment and Wage Differences across Gender: a quantile regression approach," GLO Discussion Paper Series 664, Global Labor Organization (GLO).
    2. Albanese, Andrea & Gallo, Giovanni, 2020. "Buy flexible, pay more: The role of temporary contracts on wage inequality," Labour Economics, Elsevier, vol. 64(C).
    3. T T Nguyen-Huu, 2023. "Wage inequality associated with job status: Evidence from Indonesia and the Philippines," Economic Issues Journal Articles, Economic Issues, vol. 28(1), pages 57-79, March.
    4. Chau, Nancy H. & Kanbur, Ravi & Soundararajan, Vidhya, 2022. "Employer Power and Employment in Developing Countries," Applied Economics and Policy Working Paper Series 324053, Cornell University, Department of Applied Economics and Management.
    5. Duman, Anil, 2020. "Pay Gaps and Mobility for Lower and Upper Tier Informal Sector Employees: an investigation of the Turkish labor market," GLO Discussion Paper Series 655, Global Labor Organization (GLO).
    6. Altan Aldan & Muhammet Enes Çıraklı, 2022. "Restrictions on temporary employment and informality among young: evidence from Turkey," Economic Change and Restructuring, Springer, vol. 55(3), pages 1481-1496, August.

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