Turkish Labor Market Research Articles

Socioeconomic, Migration, and Political Upheaval Factors in Crime: Applying the Social Disorganization Theory in Turkey

ABSTRACTThis review attempts to provide a comprehensive investigation of the complex argument that socioeconomic conditions and crime are related through political instabilities and their impact on Turkey's economy, with a specific focus on social disorganization theory. By focusing on the Turkish labor market, this study examines the interplay of socioeconomic factors impacting crime rates and changing public views. This review highlights social disorganization and crime patterns via socioeconomic factors, migration, and political upheaval. By exploring the transformation of Turkey's labor market over many decades, this study aims to provide insights into the ongoing issues of the country.

Impact of Global Climate Change on The Labour Market: Evidence from Türkiye

In the literature, the relationship between climate change and the labour market is discussed in terms of whether climate policies create employment opportunities or increase unemployment. Therefore, whether the transition to renewable energy will increase unemployment or create employment opportunities is an important research topic. This study aims to investigate the relationship between unemployment and the use of renewable energy by focusing on the Turkish labour market. In the study, the Augmented Autoregressive Distributed Lag test is applied to determine the short- and long-run relationships of the variables with annual data for the period 1990-2019 obtained from the International Energy Agency and TurkStat databases. The results of the study show that in the long-run, a 1% increase in non-renewable energy reduces unemployment by 1.64%, while renewable energy reduces unemployment by 2.03%. In the short-run, every 1% increase in the use of renewable energy reduces unemployment by 1.06%, while a 1% increase in the use of non-renewable energy reduces unemployment by 1.31%. In this context, it is possible to say that non-renewable energy sources have a greater impact on unemployment in the short run. The results of the research suggest that climate policies focussing on renewable energy in Turkey can help fight unemployment.

Examining the Shifting Dynamics of the Beveridge Curve in the Turkish Labor Market during Crises

Following the global financial crisis, an increasing amount of attention has been directed towards examining the Beveridge curve (BC), which indicates the relationship between unemployment and vacancy rates. This research analyzes the unemployment–vacancy rate dynamics in the Turkiye labor market during both the global financial crisis and COVID-19 periods. The findings from this study demonstrate that the labor market exhibits deteriorating efficiency, as evidenced by movement of BC away from the origin. The unemployment and vacancy rates both increase over time, with a leftward (rightward) shift of BC during the global financial crisis (COVID-19) period. The study also reveals that both crises had no significant effect on unemployment–vacancy rate dynamics. In the Turkish labor market, there exists a situation where the vacancy rate is in shortfall of the unemployment level in Turkiye. This creates a positive relationship between these two factors. The labor market in Turkiye experiences inefficiencies as it struggles to generate a sufficient number of jobs to meet the demand from job seekers.

International Forced Migration and Employment Relations: The Case of Syrians in Turkey

Due to the political unrest following the civil war in 2011, several million Syrians had to flee from their own country to save their lives. This form of migration is called as forced migration given rise to reasons such as environmental disasters, climate change, civil conflict, and war. The mass migration movement of Syrians, first within the country and then towards neighboring countries, brought along many socio-economic problems. One of the most affected countries has been forced migration from Turkey to the Syrian hosts, including about 5 million registered and unregistered. Although it has been 9 years since the process, which was initially established through temporariness, a solution could not be found and the dream of returning Syrians has weakened day by day. This study aims to reveal how the Syrians, who are included in the labor market in an unplanned way, affect the Turkish labor market. Dynamic Panel data analysis was carried out using the data of 26 regions of Turkey. As a result, a 1% increase in the immigrant rate, which represents the share of Syrian immigrants in the region’s population, increases the employment rate by approximately 0.02%.

Determining the relationship between unemployment and minimum wage in Turkey

The minimum wage, which has increased more than tenfold in Turkey since 2014, has been a controversial topic for Turkish economic policy in the last few years. This controversy is due to a variety of factors including the high rate of minimum wage-bound workers and the minimum wage dropping below the hunger and poverty limits because of inflation despite rapid increase in the nominal minimum wage. The literature on the Turkish labor market, as well as the broader empirical and theoretical literature in economics, is divided about the employment effect of minimum wage. We hypothesized that the minimum wage has a positive and a Granger causal relationship with unemployment because the high rate of minimum wage bound workers suggests a minimum wage increase might introduce a lot of rigidity in the labor market. To test this hypothesis, we conducted Ordinary Least Squares (OLS) regression and Granger causality tests using unemployment, minimum wage, gross domestic product (GDP), and producer price index (PPI) data from 2014 to 2022. We concluded that there is a positive correlation between minimum wage and unemployment and that the minimum wage has a Granger causal link to unemployment. Although further research is required to establish a definite causal link, the findings in this paper establish a positive relationship and strengthen the case that a higher minimum wage has a causal link to a higher level of unemployment. These results imply that greater consideration of the of minimum wage on unemployment is needed in minimum wage setting.

The returns to field of study in the Turkish labour market: a pseudo-panel approach

The returns to field of study in the Turkish labour market: a pseudo-panel approach

Creative Class in Türkiye: New Job Prospects

This paper covers a comprehensive study of the creative class in Türkiye in terms of new job prospects. Nowadays, creativity is one of key skills necessary for future jobs. People, who have creative and innovative thinking, generate original ideas and produce unique products, form a special stratum of society called creative class. Creative class professionals include scientists, teachers, artists, models, social media influencers, etc. This article is intended to outline the specifics of new type of workers’ lifestyle which implies comfortable living conditions known as “quality of place.” In order to clarify how ready Türkiye is for the development of the creative class, the state of the labor market is analyzed. It has been revealed that the Turkish labor market is characterized by both strengths (e.g. large population, a large share of the youth, increase in labor productivity) and weaknesses (e.g. labor underutilization, limited female labor participation, lack of skills). People mainly work in agriculture, industry, service sector and construction. These characteristics outline the basis for the rise of the creative class and the emergence of new careers in Türkiye. Correspondingly, this research is aimed at analysis and assessment of factors, circumstances and preconditions for the emergence of the creative class in Türkiye as well as determining the creative class job opportunities. The methodology of the study is founded on exploring new and potential jobs that will be required by the future. The article presents a framework for the assessment of the creative class in Türkiye based on the standard measures of job quantity, as well as job quality and labor market inclusiveness. The paper proposes the vision of how Türkiye can drive talent transformation and upskill its workforce in order to satisfy demand for innovative type of workers and take advantage of new opportunity. This study provides a unique and vital contribution to ongoing discussions about the significance of the creative class for employment highlighting the universalized assumptions concerning the position of these professionals in the Turkish economy.

Determinants of overlapping mismatch in the Turkish labour market

Using a micro dataset from labour force survey of Turkey and employing a multinomial logistic regression, this paper examines the determinants of mere overeducation, mere field of study mismatch and full-mismatch (who are both overeducated and field of study mismatched simultaneously). The target group consists of full-time wage-based employees who graduated from higher education and are aged 20–65. The determinants of mismatch are analysed under four variable groups which are labour market context, demography, field of study and job-specific characteristics. In line with the earlier empirical evidence, we find that the unfavourable economic conditions at the time of entry into the labour market might affect the behavioural pattern of individuals while searching for a matching job. Moreover, the sharp increase in university graduates increased further the fierce competition for the limited jobs available in the labour market, and resulted in a high likelihood of mismatch especially for the recent graduates. In sum, the estimation results yield that any mismatch category is responsive to those determinants where fully-mismatched employees are more responsive. Hence, we propose that the policy implications should better focus on the full-mismatch category.

The Effect of Innovation on Employment in Türkiye

This study examines the impact of innovation on employment in the Turkish labor market between the years 1991-2021, using monthly patent grants and annual R&D expenditure statistics. As for empirical technique, ARDL (autoregressive distributed lag) approach is used. The reason for choosing this approach is that it separates the long-term and short-term results and gives better results in analysis with a lower number of observations than other methods. The difference between the results of this study from the literature is that the analysis was performed in two different time periods, with two different proxy variables, and they gave the same result as proof of the robustness of the results. When the long-run model and the short-run model are investigated separately, it is found that while the effect of innovation on employment is negative in the short-run, it turns out to be positive in the long-run. Thus, during the period 1991-2021 in the Turkish labor market, while innovation might negatively affect employment levels to some extent in the short run, innovation could exert a more structural and sustainable positive impact on employment levels in the long run. In the short-run, the negative effect of innovation on employment can be seen as a kind of creative destruction, but in the long-run, the positive effect of innovation supports the hypothesis that the increase in the education and training levels of workers along with the profit and productivity provided by innovation increases employment by adapting workers to innovation. The aim of this study is to make an inference with macro data sets but, using micro-level, firm data may provide significant results on the effect of innovation on employment.

The Gendered Relationship Between Temporary, Informal Employment and Wages: Evidence from the Turkish Labor Market

This article examines the relationship between types of employment and wages by gender and gender pay gaps among permanent, temporary, and informal workers. There are substantial gender inequalities in bargaining, and these inequalities are argued to be more prevalent for temporary and informal jobs. Hence, larger wage penalties for women in such positions are expected. Moreover, the inverse association between wages and non-permanent contracts is larger for low-paid women. To this end, the study employs unconditional quantile regression techniques and counterfactual decomposition analysis, and accounts for selection bias. The dataset is based on labor force surveys over the period 2005–19 in Turkey and focuses on private sector employees. The findings highlight the disproportionate impact of temporary and informal employment on women’s earnings and suggest that employment type can be a contributing factor to the gender pay gap in Turkey, particularly for low wage groups. HIGHLIGHTS In Turkey, employment opportunities, social norms, and gender roles limit women’s bargaining power. Gender inequalities in bargaining can vary significantly across employment types. Women employees with temporary or informal jobs suffer from larger pay penalties. Residual gender pay gaps are larger for low-paid temporary and informal workers.

Syrian Asylum Seekers in the Turkish Labor Market

Türkiye’de sayıları 4 milyona yakın olan Suriyeli nüfusun iş gücü piyasasına katılımları ve ekonomik entegrasyon süreçleri Türkiye’de iş gücü arzını, gelir dağılımını, ülke içerisinde yaşanan ekonomik hareketliliği ve iş gücü piyasasına ilişkin dengeleri etkilemektedir. Bu doğrultuda bu çalışmada Suriyeli sığınmacıların iş gücü piyasasında görünümleri kayıt dışı istihdam, işsizlik, düzensiz göç, ücretler ve çalışma koşulları ekseninde mevcut veriler ve yapılan çalışmalar ışığında ele alınmıştır. Çalışmada Suriyeli sığınmacıların Türkiye’de iş gücü piyasasına katılım sağlamaları ile birlikte Türkiye iş gücü piyasasında yaşanan olumlu ve olumsuz değişimlerin değerlendirilmesi, Suriye göçünün Türkiye’nin iş gücü piyasasında ortaya çıkardığı sorun alanları ve bu sorun alanlarına yönelik çözüm önerilerinin değerlendirilmesi amaçlanmaktadır. Çalışmada Suriyeli sığınmacıların Türkiye’de iş gücü ve istihdama erişimleri karşısında sosyal, ekonomik ve yasal engellerin varlığı tespit edilmiştir. Suriyeli sığınmacıların özellikle kayıtlı istihdama erişimlerinde karşılaştıkları bu engeller Türkiye iş gücü piyasasında düşük ücret, emek sömürüsü, güvencesiz çalışma koşulları, kayıt dışı istihdamın genişlemesi gibi birtakım sorunları beraberinde getirmekte ve Türkiye ekonomisi bakımından bu sorunların derinleşmesine sebep olmaktadır.

Syrian Women in the Turkish Labor Market: Understanding their Labor Supply Behavior

This study explores the various dynamics that Syrian women under temporary protection in Türkiye encounter in the labor market. By conducting a qualitative study on female Syrian employees residing in six different cities in Türkiye and basing our analysis on the neoclassical theory of labor supply, the study seeks to elucidate nationwide factors that potentially affect these women’s work decisions. It also attempts to identify if any differences exist in the labor market outcomes for Syrian women compared to their female Turkish counterparts or male Syrian counterparts. Therefore, the study employs a gender perspective and aims to provide an in-depth analysis of the experiences of working Syrian women by distinguishing them from the overall Syrian population living in Türkiye. Study findings point to both pecuniary and nonpecuniary factors that shape the labor supply behavior of these women.

The Returns to Field of Study in Turkish Labor Market: A Pseudo-Panel Approach

The Returns to Field of Study in Turkish Labor Market: A Pseudo-Panel Approach

SAĞLIK SEKTÖRÜNDEKİ ÇALIŞMA İZNİNE SAHİP GEÇİCİ KORUMA SAĞLANAN SURİYELİ KADIN İŞÇİLERİN ÇALIŞMA HAYATI TECRÜBELERİ VE TOPLUMSAL UYUM HALLERİ: MERSİN İLİ ÖRNEĞİ

Suriye göçünün ardında gelişen sosyo-ekonomik değişimlerin etkileri akademik çalışmalar bakımından önem arz etmektedir. Göçün etkilediği en önlemli alanların başında da çalışma hayatı gelmektedir. Özellikle yabancıların kayıtlı istihdamının sağlanması bilimsel çalışmaların geçerliliği ve güvenilirliği bakımından önem arz etmektedir.Göç sonrası dönemde Türkiye işgücü piyasasında bazı yasal değişikliklerin yapılmasına ihtiyaç duyulmuş-tur. Bu kapsamda Suriyeli işçilerin yasal olarak çalışabilmelerine imkan sunan düzenleme gerçekleştirilmiştir. Suriyeli işçilerin sınırlı bir kesiminin çalışma iznine sahip olması ampirik araştırmaların kapsamını farklılaştırmaktadır. Bu kapsamda çalışma iznine sahip olmak için uygulanmakta olan ilgili Yönetmelik gereği Suriyeli işçilerin sosyo-kültürel statülerinde farklı etkilerin olup olmadığı araştırılmak istenmiştir. Çalışmada Mersin ilinde ikamet edip sağlık sektöründe evde bakım hizmeti yürüten geçici koruma kapsamındaki Suriyeli işçilerin işgücü piyasasından hareketle toplumsal uyum düzeylerinde ne tür etkilerin olduğu araştırılmıştır. Bu bağlamda 6 Suriyeli işçi ile yarı yapılandırılmış sorular ekseninde derinlemesine mülakatlar yapılarak nitel araştırma yapılmıştır. Araştırma sonucunda çalışma izninin çalışma yaşamındaki olumlu etkilerin yanı sıra toplumsal uyumlarında kayda değer bulgulara rastlanmıştır.

The impact of mass migration of Syrians on the Turkish labor market

We estimate the effects of the arrival of 2.5 million Syrian refugees in Turkey as of the end of 2015 on the labor market outcomes of natives, using a difference-in-differences IV methodology. We find that the migrant influx has strong adverse effects on native workers in the informal sector, particularly on temporary wage workers, less-educated and young workers, women who are part-time employed and self-employed, and workers in agriculture and construction. At the same time, it has favorable effects on complementary workers in the formal sector; wage employment and wages of men in the formal sector increase—particularly in manufacturing. Increases in product market prices and capital investment in the treatment regions contribute to the rise in labor demand in the formal sector. The migrant impact on native men's total employment is null, whereas it is more adverse for women primarily because the migrant influx does not raise their employment in the formal sector—unlike for men. The adverse effects on the most vulnerable groups in the labor market and the rise in consumer prices imply that poverty might increase among these native groups.

THE IMPACT OF INTERNATIONAL LABOR FORCE ON LABOR FORCE PARTICIPATION, GDP AND PRODUCTIVITY

In today’s world, there are many reasons behind labor migration, however, better living conditions are still the main motives. A new language, a new life in a foreign country, adaptation to the social and economic life, livelihood costs, loss of wages during a new job search are the main disadvantages that migrant labor can experience. The aim of this study is to reveal the impact of the international labor force on labor force participation, gross domestic product (GDP), and productivity in Turkey. The research method is a multivariate regression model, estimated in Stata. The number of foreign workers who are registered in the Foreigners Automation System and who have work permits is taken into account. According to the statistics, they are generally employed in low-skilled positions. The results provided that the foreign workers have a limited impact on the labor force participation, GDP, and productivity in the Turkish labor market. But in the last years, the education status of the foreign workers has been increasing which can pose a rise in productivity and in GDP in the future. We think that foreign labor workers are crucial forces both for host countries and organisations. Therefore, revealing other effects of foreign workers on the economy will contribute to both literature and practice.

Political Climate and the Headscarf Issue in Turkey: A Perspective from the Labor Market

This article focuses on the relationship between the socioeconomic rights of headscarved women and the political attitude of governments towards the headscarf in Turkey. Taking the 2013 removal of bans against the headscarf in the public sphere as the reference point, we attempt to provide a before-and-after comparison of the status of headscarved professionals in the Turkish labor market, based on factors in the political climate. While focusing mainly on the changing outlook in the public sector, we also examine the consequences of this liberalizing move on the private sector and explore the likely futures of the headscarf issue from a labor market perspective. Findings from the qualitative research reveal the strong influence political attitude has on the headscarf issue, as evident in the employment of headscarved women in white-collar occupations. We discovered that the political climate is still expected to be the key dynamic in Turkey that shapes the future for professionals wearing the headscarf, primarily through the channel of the state job market. This study contributes to the vast literature on women’s social and economic rights by addressing a decades-long, divisive issue that concerns a substantial segment of Turkish society.

Youth underemployment in the Turkish labour market

The aim of this study is to examine the factors affecting youth underemployment in the Turkish labour market using the nationally representative household labour survey (HLS) provided by the Turkish Statistical Institute (TurkStat) for 2016 and 2018 and aims to reveal the changes occurring in the two-year period. In order to estimate youth underemployment, the logistic regression method is performed in the empirical analysis. The analysis is carried out for young people between the ages 15-24. The findings indicate that females are more likely to be underemployed as compared to males for both 2016 and 2018. Furthermore, young individuals graduated from university or masters are more likely to be underemployed for both years. The most important variable explaining the underemployment is the informal sector and individuals working in informal sector are more likely to be underemployed. Considering sectors, agricultural sector has more risk in terms of underemployment as compared to other sectors.

The Impact of Mass Migration of Syrians on the Turkish Labor Market

The Impact of Mass Migration of Syrians on the Turkish Labor Market

Covid 19 and the Turkish labor market: Heterogeneous effects across demographic groups

The aim of this paper is to detect the effects of the Covid-19 pandemic on several labor market indicators and to identify the heterogeneity of these effects across different demographic groups in the Turkish labor market. To this aim, we use the quarterly Turkish household labor force surveys which cover the period between 2005 and 2020. We find that pandemic decreased employment and labor force participation of almost all groups. The effect on women was more prominent in comparison with men. We also find heterogeneity with respect to age. Finally, our results show that the least educated were more negatively affected by the pandemic.