Formal/informal labor mobility in Turkey

What is it about?

This paper examines the labor mobility between formal and informal sector in Turkey using panel data. We apply Markov transition analysis to identify the mobility patterns and multinomial logit estimation to characterize their underlying dynamics.

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Why is it important?

We find that the market displays a rather static structure throughout the period considered. This indicates that a well recognition of underlying dynamics may help policy makers to produce various effective tools for addressing informality.