Econ424Lecture5 - Selected Topics in Turkish Economy...

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Selected Topics in Turkish Economy Lecture Notes 5 Alper Duman April 8, 2009 Alper Duman Selected Topics in Turkish Economy Lecture Notes 5
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Bulutay and Tasti, 2004 I A high percentage of population engaging in agriculture constitutes the driving force behind informal employment. I The already large and surplus population in rural areas bolstered by high population growth rates, pushes the people to cities I The pull of the cities has been generally inadequate to absorb and employ these large volumes of people in satisfactory jobs. Alper Duman Selected Topics in Turkish Economy Lecture Notes 5
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I The informal sector should be put into a new classification, which is composed of agricultural, informal-sector, formal-sector and public-sector employment. I The low productivity in these two sectors (agriculture and informal sectors) is a fundamental characteristic of the Turkish labour market. I The employment rate, measures better the Turkish labour market than the standard unemployment rate. Alper Duman Selected Topics in Turkish Economy Lecture Notes 5
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I The informal sector units can be defined as ...unincorporated enterprises owned and operated by households or household members, either individually or in partnership with others. I Own account enterprises are those units owned and operated by own-account workers, either alone or in partnership with members of the same or other households, who do not employ any employees on a continuous basis but who may employ unpaid family workers and/or employ occasional hired workers to meet temporary work needs (casual employees)... I Two criteria are proposed in order to identify enterprises of informal employers: The size of the units in terms of employment, and the conditions of employment in terms of the social and legal protection of workers. I Small enterprises of employers, which do not employ any regular employees, may be considered part of the informal sector as enterprises of informal employers.
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