Sectoral informality in Turkey

Abstract

This thesis evaluates the sectoral based probability of informal employment and its possible determinants. By decomposing the effects of workers’ characteristics and sectoral features on probability of informal employment, new measures of informality degrees of sectors are calculated. These new informality measures provide an easy and understandable interpretation and comparison across sectors. These new measures suggest that people who work in agriculture (includes agriculture, forestry and fishing) and construction sectors are more likely to be employed informally, while financial (financial intermediation, real estate, renting and business activities) and mining (mining and quarrying) sectors are relatively more formal in terms of employment. Additionally, among the determinants of differences in the probability of informal employment, the share of male workers and the amount of sectoral credits over GDP are found to be significant.