Assessing The Distributive Effects of Minimum Wage: Evidence From Turkey

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Sefil Tansever S.

Journal of Research in Economics, cilt.8, sa.2, ss.145-165, 2024 (Hakemli Dergi)

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 8 Sayı: 2
  • Basım Tarihi: 2024
  • Doi Numarası: 10.29228/jore.xx
  • Dergi Adı: Journal of Research in Economics
  • Derginin Tarandığı İndeksler: EconLit
  • Sayfa Sayıları: ss.145-165
  • 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.