Assessing The Distributive Effects of Minimum Wage: Evidence From Turkey
Journal of Research in Economics, cilt.2, sa.8, ss.145-164, 2024 (Hakemli Dergi)
- Yayın Türü: Makale / Tam Makale
- Cilt numarası: 2 Sayı: 8
- Basım Tarihi: 2024
- Doi Numarası: 10.29228/jore.xx
- Dergi Adı: Journal of Research in Economics
- Sayfa Sayıları: ss.145-164
- Açık Arşiv Koleksiyonu: AVESİS Açık Erişim Koleksiyonu
- İstanbul Ticaret Üniversitesi Adresli: Evet
Özet
This study explores the effects of the 2016 minimum wage hike in Turkey on wage distribution up to
2022 by using a difference-in-differences methodology. This approach employs unconditional quantile
regressions by utilizing variation in the bite of the minimum wage across NUTS2 regions in Turkey and
utilizes data from the Turkish Household Labor Force Survey (HLSF). The findings indicate that the
2016 minimum wage increase positively affects wages in the lower quantiles while having a negative
impact on wages in the higher quantiles. Consequently, this leads to a wage compression effect,
ultimately resulting in a reduction in wage inequality, as supported by descriptive analysis.