The Effect of the Regional “Income Tax Withholding Allowance” and “Social Security Premium Support” Programmes on Labour Outcomes in Turkey
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Eleftherios Giovanis
,
Oznur Ozdamar
Abstract
This paper examines the employment effects of the “Income tax withholding allowance” and “Social security premium support” programmes implemented in Turkey in 2012. The programmes aim to provide incentives to firms and generate employment opportunities for groups in targeted regions in the Eastern part of Turkey. The analysis relies on detailed micro-level data derived by the Household Labour Force Survey in 2008–2016. We apply the difference-in-differences (DID) method, and we use as treated subjects the respondents located in the regions affected by the policy. Moreover, we propose the propensity score matching approach within the DID framework to reduce the possible selection bias. The findings show a positive impact of the programme on employment, wages, the number of working hours and labour force participation, but we find a negative effect on the probability of being employed in a permanent job for the treated group.
Funding source: Türkiye Bilimsel ve Teknolojik Araştirma Kurumu
Award Identifier / Grant number: Career Development Program 3501 with Project No. 2
Acknowledgements
The authors would like to thank the Editor and two anonymous reviewers for their valuable suggestions and constructive comments that greatly contributed to the improvement of the quality of this paper. Any remaining errors or omissions remain the responsibility of the authors.
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Research funding: This research was supported and funded by the Scientific and Technological Research Council of Turkey (TÜBİTAK) under the Career Development Program 3501 with Project No. 217K059. The financial support received from TÜBİTAK does not mean that the context of the paper is approved in a scientific sense by TÜBİTAK. The authors are grateful for the financial support received.
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Data: This work is done using STATA 15 and is based on data derived from the Household Labour Force Survey (HLFS) 2008–2016 provided by the Turkish Statistical Institute (TURKSTAT).
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© 2021 Walter de Gruyter GmbH, Berlin/Boston
Artikel in diesem Heft
- Frontmatter
- Research Articles
- The Effect of the Regional “Income Tax Withholding Allowance” and “Social Security Premium Support” Programmes on Labour Outcomes in Turkey
- Trade Potential in Arab Nations: The Case of the GCC and PAFTA
- The Asymmetric Impact of Oil Prices on Unemployment in the MENA Region
Artikel in diesem Heft
- Frontmatter
- Research Articles
- The Effect of the Regional “Income Tax Withholding Allowance” and “Social Security Premium Support” Programmes on Labour Outcomes in Turkey
- Trade Potential in Arab Nations: The Case of the GCC and PAFTA
- The Asymmetric Impact of Oil Prices on Unemployment in the MENA Region
