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The Impact of Wage Subsidies on the Gender Division of Labor:The Case of Turkey

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  • Hüseyin Ikizler

    (Presidency of Strategy and Budget)

  • Çagla Ökten

    (Bilkent University)

Abstract

This paper investigates the employment effects of the employment subsidy programs implemented in Turkey since 2008. The Turkish Government put into practice active labor market programs to generate new employment for all women and younger men, the relatively disadvantaged groups in the Turkish labor market. We use a nationally representative microlevel dataset and a difference-in-differences approach to estimate these programs' causal effects. Although these incentive programs are relatively costly, they impact the gender division of labor, especially in the low-skilled blue-collar jobs and high-skilled white-collar jobs. These wage subsidies result, on average, a 1.2 ppt increase, and at most, a 3.5 ppt increase in the share of women in newly hired workers in high-skilled white-collar jobs.

Suggested Citation

  • Hüseyin Ikizler & Çagla Ökten, 2020. "The Impact of Wage Subsidies on the Gender Division of Labor:The Case of Turkey," Working Papers 1421, Economic Research Forum, revised 20 Nov 2020.
    • Handle: RePEc:erg:wpaper:1421
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