Seyfettin Gürsel and Selin Pelek
Informal employment remains a major structural problem of Turkish economy, while there seems to be a recent rise in the number of workers being registered with the social security system. Informality is one of the most important reasons behind the unfair competition, low productivity, tax evasion and ineffective social policies. The number of informally employed who are not registered social security significantly increased after the 2001 crisis in non-agriculture, while showing a tendency to decline in the last year. Nevertheless, informal employment is rising among self-employed. Also, it is pervasively widespread among the young and those over middle-age. Informality decreases as the level of schooling increases for self-employed and as the firm scale increases for the wage earners.
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