ERC WORKING PAPERS
00/15 Wage earners, self employed and gender in the informal sector in Turkey
This study considers covered and uncovered wage earners and the self-employed.
The analysis is carried out for men and women workers separately. 1994 Turkish
Household Expenditure Survey is used first to examine how individuals are selected
into the covered and uncovered wage earner and the self-employed categories.
Next, selectivity corrected wage equations are estimated to examine wage determination
in these sectors. Oaxaca-Blinder decomposition of sector of work and male-female
wage differentials are carried out. When controlled for the observed characteristics
and sample selection, for men, covered wage earners earn more than the uncovered
wage earners and the self-employed. For the covered wage earners, mens expected
wages are about twice higher than the womens wages. For the uncovered wage
earners, mens wages are near parity with those of women. These results suggest
segmentation for men along the formal and informal lines and substantial discrimination
for women in the covered private sector.