Crowding-Out Effect of the COVID-19 Pandemic on the Unregistered Employment: Divergence in the Formal–Informal Labor Market in Turkey

The devastating effects of the COVID-19 pandemic on labor markets have been experienced across the globe, and Turkey is no exception. Worldwide, millions of workers lost their jobs or contracts or had to work fewer hours and had lower wages. The International Labour Organization estimates that at le...

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Main Authors: Nurgün Kul Parlak, Ayşe Nur Çiftçi
Format: Article
Language:English
Published: Istanbul University Press 2022-06-01
Series:Sosyal Siyaset Konferansları Dergisi
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Online Access:https://cdn.istanbul.edu.tr/file/JTA6CLJ8T5/1BA894409DC241849EB18BAD2A9D0539
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author Nurgün Kul Parlak
Ayşe Nur Çiftçi
author_facet Nurgün Kul Parlak
Ayşe Nur Çiftçi
author_sort Nurgün Kul Parlak
collection DOAJ
description The devastating effects of the COVID-19 pandemic on labor markets have been experienced across the globe, and Turkey is no exception. Worldwide, millions of workers lost their jobs or contracts or had to work fewer hours and had lower wages. The International Labour Organization estimates that at least 125 million full time jobs were lost. The pandemic has had a devastating impact on employment in general and a particularly severe one on the informal sector as these employees with no social protection are the most affected. This study tests whether there are differences in job loss and unemployment between formal and informal sectors in Turkish labor markets resulting from the pandemic. The data for testing are compiled according to NUTS-2 using the TSI’s data portal. The changes in the size of employment in formal and informal sectors between 2019 and 2020 are obtained according to regional units. In addition to the change in total employment volumes, employment tests regarding education, workplace scale, and gender proportion are conducted. The findings indicate a significant disintegration between formal and informal sectors according to change in employment. In addition, although the pandemic did expand employment opportunities in the formal sector, it clearly caused a severe contraction in informal sector employment. This indicates that the pandemic has led to a considerable number of job losses by those employed in the informal sector, exposing them to a severe risk of poverty.
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series Sosyal Siyaset Konferansları Dergisi
spelling doaj-art-1e3e50f7bc774e9cae53f30f1484d44d2025-08-20T02:57:55ZengIstanbul University PressSosyal Siyaset Konferansları Dergisi1304-01032548-04052022-06-01829313510.26650/jspc.2022.82.1051110123456Crowding-Out Effect of the COVID-19 Pandemic on the Unregistered Employment: Divergence in the Formal–Informal Labor Market in TurkeyNurgün Kul Parlak0https://orcid.org/0000-0002-0497-9098Ayşe Nur Çiftçi1https://orcid.org/0000-0003-0928-644Xİstanbul Üniversitesi-Cerrahpaşa, Istanbul, TurkiyeKırklareli Üniversitesi, Kirklareli, TurkiyeThe devastating effects of the COVID-19 pandemic on labor markets have been experienced across the globe, and Turkey is no exception. Worldwide, millions of workers lost their jobs or contracts or had to work fewer hours and had lower wages. The International Labour Organization estimates that at least 125 million full time jobs were lost. The pandemic has had a devastating impact on employment in general and a particularly severe one on the informal sector as these employees with no social protection are the most affected. This study tests whether there are differences in job loss and unemployment between formal and informal sectors in Turkish labor markets resulting from the pandemic. The data for testing are compiled according to NUTS-2 using the TSI’s data portal. The changes in the size of employment in formal and informal sectors between 2019 and 2020 are obtained according to regional units. In addition to the change in total employment volumes, employment tests regarding education, workplace scale, and gender proportion are conducted. The findings indicate a significant disintegration between formal and informal sectors according to change in employment. In addition, although the pandemic did expand employment opportunities in the formal sector, it clearly caused a severe contraction in informal sector employment. This indicates that the pandemic has led to a considerable number of job losses by those employed in the informal sector, exposing them to a severe risk of poverty.https://cdn.istanbul.edu.tr/file/JTA6CLJ8T5/1BA894409DC241849EB18BAD2A9D0539covid-19labor marketsunemploymentjob lossesunregistered employment
spellingShingle Nurgün Kul Parlak
Ayşe Nur Çiftçi
Crowding-Out Effect of the COVID-19 Pandemic on the Unregistered Employment: Divergence in the Formal–Informal Labor Market in Turkey
Sosyal Siyaset Konferansları Dergisi
covid-19
labor markets
unemployment
job losses
unregistered employment
title Crowding-Out Effect of the COVID-19 Pandemic on the Unregistered Employment: Divergence in the Formal–Informal Labor Market in Turkey
title_full Crowding-Out Effect of the COVID-19 Pandemic on the Unregistered Employment: Divergence in the Formal–Informal Labor Market in Turkey
title_fullStr Crowding-Out Effect of the COVID-19 Pandemic on the Unregistered Employment: Divergence in the Formal–Informal Labor Market in Turkey
title_full_unstemmed Crowding-Out Effect of the COVID-19 Pandemic on the Unregistered Employment: Divergence in the Formal–Informal Labor Market in Turkey
title_short Crowding-Out Effect of the COVID-19 Pandemic on the Unregistered Employment: Divergence in the Formal–Informal Labor Market in Turkey
title_sort crowding out effect of the covid 19 pandemic on the unregistered employment divergence in the formal informal labor market in turkey
topic covid-19
labor markets
unemployment
job losses
unregistered employment
url https://cdn.istanbul.edu.tr/file/JTA6CLJ8T5/1BA894409DC241849EB18BAD2A9D0539
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