INCENTIVES INCREASE FORMAL FEMALE EMPLOYMENT

Gökçe Uysal

This research brief focuses on the effects of the social security premium incentives granted for women and youth employment and analyzes the effects of these incentives on formal employment among women in the 30-44 age group. This practice started in 2008 and has continued since under various different regulations. The analysis is carried out using data provided by TurkStat (Turkish Statistical Institute). The data indicates that the incentives had a positive effect particularly on the employment of married women who have low levels of education. Results imply that it is mostly the large companies operating in the industrial sector that benefit from the incentives. However, other incentives such as regional incentives, tax incentives to all new job creation, etc, that were enacted meanwhile, undermine the positive effects of this policy. This finding implies that policy-makers should take into account all possible interactions between incentives when designing laws and regulations.

doc. ResearchBrief151

pdf. ResearchBrief151