Background Study on Labour Market and Employment in

Transcription

FINAL REPORT/June 27, 2003
*Annexes 3 and 4 are under separate cover
Background Study on Labour Market
and Employment in TURKEY
İnsan TUNALI
Prepared for the European Training Foundation
i
Background Study on
Labour Market and Employment in Turkey
Table of Contents
i
Foreword
iii
Executive summary
iv
1.
1
Introduction
1.1
The Objectives of the Study
1.2
Methodology
1.3
Limitations
2.
Labour Market Situation in Turkey
2.1
General Trends
2.2
Wage Structure
2.3
Social Security and Taxes
2.4
Key Issues
3.
Employment
3.1
General trend
3.2
Structural Changes in Employment (major sectors)
3.3
Employment in Private Sector
3.4
Regional Distribution of Employment
3.5
Rural Employment
3.6
Child Labour
3.7
“Hidden” Employment
3.8
Vacancies and Structural Imbalances
4.
Labour Force Participation
4.1
Demographic Trends
4.2
Labour Force Participation of the Population
4.3
Labour Force Participation by Educational Attainment
4.4
Labour Force Participation by Region
4.5
Supply of Hours
4.6
Geographic Mobility
5.
Unemployment
5.1
Unemployment Data
5.2
General Trends in Total Unemployment
5.3
Unemployment by Age Groups
5.4
Unemployment by Educational Attainment
3
14
30
44
ii
5.5
Unemployment by Region
5.6
“Hidden” Unemployment
6.
Vocational Education and Training systems
6.1
General Status of the Education and Training System
6.2
Initial Vocational Education
6.3
Continuous Training and Adult Education
6.4
Training for the Unemployed
7.
Labour Market Institutions
7.1
Government Bodies
7.2
Labour Market Regulations
7.3
Industrial Relations
8.
Labour Market Policies
8.1
Passive Labour Market Measures
8.2
Active Labour Market Measures
8.3
Public Employment Services
8.4
Industrial Policies
58
73
79
9.
Summary and Conclusions
90
10.
Acknowledgments
98
11.
References
99
Annexes
Annex 1. Supplementary Figures and Tables
103
Annex 2. Glossary of Acronyms and Key Terms
121
Annex 3. Annotated Bibliography (under separate cover)
Annex 4. Topical Reports (under separate cover)
iii
Foreword
(will be drafted centrally)
iv
Executive summary
This study offers a comprehensive overview of the labour market in Turkey at the beginning
of the 21st century. The first chapter states the objectives, describes the methodology, and
underscores the limitations of the report. The second chapter highlights recent economic and
political developments, and introduces some key features of the labor market. Chapters 3-5
provide a detailed account of the trends and recent conditions regarding employment, labor
force participation, and unemployment. Chapters 6-8 provide a summary account of the
relevant institutional framework. Chapter 9 contains a short summary of the findings and
identifies the challenges that Turkey faces in formulating its employment strategy.
By the end of the 20th century, it was clear that the structural reforms that Turkey
implemented during the 1980s and 1990s failed to deliver the favorable labour market
outcomes (namely decent employment and wage growth) predicted by the proponents of
reform. The crash of 2001 elevated problems to historic levels which had not been witnessed
by the generations born after 1960, who account for over 60 percent of the population.
Notably between the end of 2000 and the beginning of 2003, the number of unemployed
individuals doubled. As the national unemployment rate climbed to double digits, the
national The unemployment rate of the educated youth (ages 15-24, with high school
education or higher) approached 30 percent. Mid career individuals (those in the 35-54 age
group) accounted for more than 25 percent of the 2.8 million unemployed nationwide.
In 2002, 65 percent of males and 25 percent of females aged 15 and above had jobs.
Agriculture accounted for 35 percent of all employment. Attaining macroeconomic stability
emerges as the precondition of solving Turkey’s employment problems and their
distributional implications. Short term challenges include rendering mid career individuals
affected by privatization and the crash of 2001 employable, and easing the school-to-work
transition of the educated youth. Labour market implications of the policy shift towards
agriculture, namely the removal of agricultural subsidies, loom large in the medium term.
Also of concern are the dramatically low female labour force participation rates in urban
areas.
When viewed from the perspective of population structure and dynamics in the EU15 (even
EU25), Turkey has much to offer. Thanks to dramatic reductions in fertility, the share of
Turkey’s working age population is rising, and will remain high during the first half of the
21st century. Recent and pending reforms of the education system will ensure steady
improvements in the quality of the new entrants to the labour force. Also welcome is the fact
that improvements in average educational attainment have been accompanied by reductions
in the male-female and urban-rural differentials.
With key structural reforms out of the way, recent Governments have directed their attention
to legislative and institutional reform called for by the Copenhagen criteria. The pace of
change attests to Turkey’s seriousness in becoming a full member of the EU. Labour market
reform directed at mediating employer concerns with flexibility and employee concerns about
job security, has been on the agenda for some time. The anticipated comprehensive revision
of the old Work Law (no. 1475) was recently implemented with the enaction of Law no. 4857
on May 22, 2003. Although the debates and concerns that preceded the new law are
discussed in detail in the report, its full content and implications could not be incorporated
into the finished product. Finally, the long awaited legislation concerning İŞKUR, the
Turkish Employment Agency, was adopted in the Parliament on June 24, 2003.
1
1.
Introduction
1.1
The Objectives of the Study
The objective of this study is to provide a comprehensive analysis of the labour market in
Turkey. Although the emphasis is on the current situation in terms of employment,
participation and unemployment, historical data are also analyzed in an attempt to establish
trends and patterns of adjustment during the post-1980 period. The analysis is complimented
by a sweeping account of the relevant institutional framework and delivery mechanisms.
1.2
Methodology
To the degree possible, the study relied on published research, reports, statistics and
newspaper articles. Publications that were of direct relevance were groomed and their
contents were summarized in the form of an annotated bibliography (included in the Annex
of this report). This made it possible to identify what is known, and what can be learned from
existing data sources. While some labour market outcomes are well-researched and
documented, others remain largely untouched. To remedy the shortcomings, members of the
team engaged in detailed preliminary investigations on eight topics covered in sections 3-5.
These topical reports are included in the Annex. Experts from ministries, government
agencies and universities (listed in section 11) were consulted on institutional issues, for the
purposes of obtaining secondary data, and for checking findings that appeared suspicious.
Starting with the earthquake that struck the Marmara region (the industrial heartland of
Turkey) in the summer of 1999, several major shocks impacted the labour market in the past
few years. Undoubtedly some of the recent deterioration in labour market outcomes will turn
out to be transitory, and some will prove to be of a more permanent nature. In an attempt to
identify the broad trends with better accuracy, available data were used selectively. For
example, 10-year trend calculations were based on data prior to 1999. At times data from
several years were averaged, so that measurement errors could be minimized.
The team assembled for the purposes of this study consisted of:
Dr. İnsan TUNALI, Associate Prof., Dept. of Economics, Koç University;
Dr. Hakan ERCAN, Associate Prof., Dept. of Economics, Middle East Tech. Univ.;
Dr. Cem BAŞLEVENT, Assistant Prof., Dept. of Economics, Bilgi University;
Orgül Demet ÖZTÜRK, Ph.D. student, Dept. of Economics, Univ. of WisconsinMadison.
In addition to the four members who had contractual responsibility for the project, a fifth was
employed as a Research Assistant:
Ufuk AKÇİĞİT, student, Dept. of Economics, Koç University.
The report was compiled by Dr. TUNALI, who, as the team leader, is responsible for the
overall project and the original report, written in English. The report was rendered into
Turkish by Dr. Metin Çulhaoğlu.
Naming and referencing conventions
To the extent possible, the official English rendering of Turkish names were used. The
original name in Turkish has been included in italics, inside square brackets, at the time of
first use. Acronyms were typically based on the English version, except when the Turkish
acronyms of the institutions were considered to be better recognized. A Glossary of
Acronyms and Key Terms used in the study has been included in the Annex. To facilitate
continuity in the text, references to cited sources and web documents have been given in
2
footnotes. Bibliographical information for conventional publications may be found at the end
of the report. The topical reports mentioned in section 1.2 are identified by an asterisk (*).
1.3
Limitations
Main data sources used in this report have been collected by the State Institute of Statistics
(SIS). These include Household Labour Force Surveys (HLFS) which were conducted
biannually (in April and October) between 1988-1999 and quarterly since 2000, General
Censuses of 1990 and 2000 (limited info. available), and Household Income and Distribution
Survey (HIDS) conducted in 1994. Due to legal stipulations designed to ensure
confidentiality of the information, access to micro data collected by the SIS is granted on a
case-by-case basis. However, select tabulations based on HLFS data may be obtained
conveniently from the web page of the SIS. Time series data on wages are hard to come by,
except for the manufacturing sector. These are based on establishment surveys and are
available in the form of crude averages. Cross-section data on labour market income are
available for 1988-89 (HFLS) and 1994 (HIDS).
Three shortcomings of the biannual HLFS have been pointed out by researchers. First, it has
been difficult to identify business cycle effects and track seasonal employment patterns
(especially in agriculture). Second, the sample frame did not allow the construction of
regional labour market indicators. Third, given the cross-section nature of the sample, it was
impossible to capture labour market dynamics. The SIS has been extremely responsive to
these criticisms. The quarterly labour market indicators published by the SIS starting with
2000 (I) are based on the redesigned HFLS. Major improvements include use of a moving
reference week, larger sample, expanded sample frame that allows regional representation,
and a rotating panel design.
The redesign of the HLFS has ushered in two new problems. First, the expanded sample
frame appears to have introduced a break between the bi-annual and quarterly series. The
break is especially evident in the case agricultural employment. Second, the exploitation of
the panel dimension of HFLS awaits a better understanding and resolution of the attrition
problems. Presently adequate information for analyzing labour market dynamics (namely,
transition rates between labour market states) is unavailable.
Starting with the biannual HLFS, standard ILO definitions have been employed for the
purposes of arriving at labour market indicators.1 This renders statistics based on the HLFS
comparable to those used in the EU. When other data sources are used, deviations from the
norm and coverage problems are underscored in the relevant subsections.
The SIS has been revising its data collection methods and survey instruments to adapt to
Eurostat standards.2 Household based surveys have led the way in terms of improvements.
Two of the three household surveys that the SIS administers, the HLFS and the Household
Budget Survey (formerly called Consumption Expenditure Survey [HCES]), are presently
being conducted continuously. The revised HIDS will soon follow suit. The resulting data
sets will make it possible to paint an integrated picture of how the changes in labour market
outcomes are reflected in the well-being of households, so that sources of income and wage
inequality, and poverty can be properly understood and tackled.
1
Detailed information on the history of the HLFS and its current format and content is
available on the SIS web page, http://www.die.gov.tr, and in Turkish in SIS (2001a).
2
Additional information may be found on the SIS web page. In particular, the statistics
section of the “2002 Progress Report” published by the EU Commission is available: see
http://www.die.gov.tr/abkd/Progress2002Statistics.pdf.
3
2.
Labour Market Situation in Turkey
2.1
General Trends
The Turkish economy suffered from several major shocks during the past decade. These
resulted in substantial fluctuations in the standard of living. Figure 2.1.1 shows the evolution
of the GNP per capita (at current prices, converted to US$ based on the average exchange
rate) and the annual growth rate (of the GNP) between 1988 and 2001. Four events, which
are responsible for the drops identified in the graph, are worth recounting. In January 1991
the Gulf War started. Turkey’s trade with Iraq and other countries in the region was
negatively affected. The next crisis was homemade. Due to mounting concerns about the
Government’s handling of public sector barrowing, the lira lost 70 percent of its value against
the US dollar during the first three months of 1994. Inflation and interest rates skyrocketed
after the stabilization program was adopted in April. In the early part of 1999, the lagged
impact of the Russian crisis was felt in Turkey. In the second half of the year, two
earthquakes devastated the Eastern part of the Marmara region which accounted for 5
percent of the establishments, more than 6 percent of the workforce, and about 15 percent of
the value added in Turkish manufacturing in 1997. Finally, 2001 went into the record books
as the year of the severest economic crisis in Turkey since the 1950s. Financial markets
came to the brink of collapse in November 2000, but the actual crash came in February 2001.
Figure 2.1.1. GNP per capita (at current prices) and growth rate, 1988-2002
US$
%
3300
15
3100
10
2900
2700
5
2500
0
1991
2300
1999
2100
-5
1994
1900
-10
1700
2001
1500
-15
1988
1989
1990
1991
1992
1993
1994
1995
GNP per capita
1996
1997
1998
1999
2000
2001
2002
Growth Rate
Source: State Planning Organisation, as reported in *Akçiğit (2003), Figure 1.
During the past decade Turkey was governed by various coalition governments. As populist
concerns prevailed, the impetus for reform and change that marked the previous decade was
lost. The 90s were characterized by a moderate average growth rate of about 3.5 percent per
annum despite many homemade and imported economic crises, but a dismal average annual
employment growth record at about 1.5 percent. The general election in Spring 1999 brought
a new and unlikely coalition of three parties (one each from left of centre, right of centre, and
extreme right) to power. Concerns about sustainability of internal and external debt ushered
4
in a stabilization and inflation reduction program, which ran into trouble late in 2000. The
distortions induced by the exchange rate anchor proved unsustainable and the program ended
abruptly with a major devaluation and a floating Turkish Lira in February 2001. The ensuing
economic crisis set the stage for some major reforms. Legislative changes established the
independence of the Central Bank and promoted budgetary discipline.
In Figure 2.1.2 the annual changes in the TL/US$ exchange rate, CPI, and WPI over the
period 1988-2001 are shown. In the absence of indexation, the inflation experience of the
80s and beyond resulted in dramatic fluctuations in the standard of living. In the general
elections held on November 3rd, 2002, voters penalized political parties that participated in
recent governments by shutting them out of the Parliament. Of the 32 that contested the
elections, only two parties were able to gain representation in the Parliament. Right-of-centre
Justice and Development [AKP], founded only 18 months ago, was swept to power with 34
percent of the popular vote and 363 seats. Left-of-centre Republican People’s Party [CHP]
won 19 percent of the vote and 178 seats.
Figure 2.1.2. Changes in the TL/US$ exchange rate, CPI and WPI, 1988-2002
Percent
180.0
160.0
140.0
120.0
100.0
80.0
60.0
40.0
20.0
0.0
1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
Year
TL/US$
CPI
WPI
Source: Ministry of Trade and Central Bank of Turkey
Economic challenges that await the new government include achieving sustainable growth
without inflation, servicing of an external debt stock that has reached $120 billion, and
borrowing internally when real interest rates hover around 25 percent per annum. The
weakened financial and banking sector and a real sector that has ground to a halt are looking
for innovative policy initiatives that can restore confidence. With 2.8 million unemployed
individuals nationwide (as of the first quarter of 2003), unemployment rates that hover
around 30 percent for the educated youth (15-24 year olds with high school and university
diplomas) residing in urban areas, and urban labour force participation rates dipping under 45
percent, employment problems loom large. Historically subsidies to small farms have helped
sustain a large rural workforce and kept urban unemployment at bay. With the removal of
the subsidies, a new challenge emerges: How to keep rural-urban migration and urban
unemployment under check. On the political front, the government has to deal with regional
issues and the reform expectations of the EU.
5
2.2
Wage Structure
Real wages:
Data limitations preclude a comprehensive analysis of the evolution of wage patterns over
time.3 Available series either come from specific sectors (such as manufacturing) or are
based on indirect methods of calculation (such as share of employee income in GDP). The
series shown in Figure 2.2.2 are based on the annual surveys of establishments in
manufacturing conducted by the SIS.4 The data for the private sector are from establishments
with 25 or more employees. The nominal series were deflated using the CPI (1987 = 100).
The third series tracks the private-public wage differential (private sector wage as a
percentage of the public sector wage).
700
100
90
80
70
60
50
40
30
20
10
0
Thousand 1987 TL
600
500
400
300
200
100
0
Percent
Figure 2.2.1. Average real wages in manufacturing, 1988-1997
88 989 990 991 992 993 994 995 996 997
19
1
1
1
1
1
1
1
1
1
private
public
private/public
Source: SIS (1999, 2000).
Average real manufacturing wages were stagnant in the private sector and declining in the
public sector during the non-democratic climate of the early-to-mid 80s. Averages in both
the public and private sectors rose sharply during the 1989-91 period with the return of
populist policies, as the gap in favour of the public sector widened. Public sector workers
experienced additional real wage increases in 1992 and 1993. The gains were severely
3
Three rounds of the biannual HLFS, 1988-October, 1989-April and 1989-October, collected
nationally representative data on individual labour income and hours of work from the
household side. Although the sampling framework does not support average wage
calculations by region, sector, etc., it is possible to rely on econometric techniques for the
purposes of inferring wage differentials by variables such as education, sex, and firm size.
Another useful source for evaluating the sources of earnings differentials is the HIDS, which
was conducted nationwide in 1987 and 1994.
4
Tansel (2001) offers a detailed account based on these and some additional available series.
We are grateful to Prof. Aysıt Tansel for updating the information in her paper using SIS
(1999, 2000) and sharing them with us. See also Bulutay (2001), pp. 52-55.
6
eroded in 1994 and 1995, as wages fell sharply following the economic crisis in 1994. In
1994 the average private manufacturing wage was one-half that in public manufacturing.
Subsequent events (such as the spill over from the Asian and Russian crises in 1997-98, and
the earthquakes that hit the industrial heartland in 1999) impacted the economy negatively
and restrained real wage growth. The crash in 2001 that sent unemployment to record levels
is likely to have had a major negative impact on real wages.
Wage setting:
In its capacity as legislator, policy maker, and enforcer, the Government sets the minimum
wage, the retirement benefits of civil servants and others covered by the publicly funded
social security system, the thresholds and rates that apply to social insurance premiums, the
administrative fines that firms have to pay in case of infringements of the labour law, and the
benefit ceilings for workers who qualify for severance pay and unemployment insurance.
The annual amount of severance pay is bounded by the maximum annual retirement bonus
paid to the highest ranked government employee.5 The maximum amount of unemployment
insurance is bounded by the net minimum wage.6
Although Turkey does not have a comprehensive centralized wage setting system, the
government influences the pace of wage growth thanks to its role as a major employer.7
Wage changes are typically implemented by retrospective or pre-determined adjustments for
inflation, and on occasion automatic indexation which is written into collective bargaining
agreements between the government and the major trade unions. These serve as examples for
unions in the organized segments of the private sector. Contractual wage adjustments are
likely to impact the unorganized segments of the economy as well, as private sector firms try
to fend off organizing efforts of unions, and as market forces trigger responses from smaller
firms.8
As of 2000, about 20 percent of the paid workforce was covered by collective bargaining
agreements (CBAs).9 Although legislation passed in 2001 expanded representation and
5
Ministry of Labour and Social Security (2001), pp.169-73.
http://www.iskur.gov.tr/mydocu/sigorta.html.
7
The share of public sector employment has been declining, but is still high. According to
Tansel (2001) the share of public sector employees among all wage workers was 33 percent
in 1990 and 28 percent in 1996. Wages and salaries paid to central government employees
equalled 6.6 percent of the GDP in 1996. This share was 4.5 percent in OECD in 1997.
8
*Tunalı (2002) provides evidence from the manufacturing sector. Based on 2-digit crosssection data from establishments with 10 or more workers, the pair-wise correlation between
average wages in the public and private sectors was 0.46 (p–value=0.18) in the first period of
1997, and 0.78 (p–value=0.008) in the second period. The association between covered and
non-covered sector wages was even stronger: the correlation coefficient was 0.85 (p–
value=0.0005) in the first period, and 0.78 (p–value=0.003) in the second.
9
Arriving at an accurate estimate is a difficult task. According to the Ministry of Labour and
Social Security, there were 2.6 million union members in January 2002. Private sector
workers accounted for 64 percent of this total. Share of females in the organized workforce
was 18.6 percent in the private sector, and 8.8 percent in the public sector (Ministry of
Labour and Social Security, 2002, p.126). Based on HLFS-2002(I), there were about 8
million regular employees who worked for pay. If the Ministry data are taken at face value,
we arrive at a unionization rate of over 30 percent. Experts on the subject point out to double
counting caused by members switching between unions and the incentive to inflate
membership figures on the part of unions. They also draw the distinction between union
6
7
bargaining rights of public sector employees, the law bars some civil servants from becoming
union members and forbids others from striking. Power of the unions in the private sector
declined during the repressive environment of the 1980s and is considerably below the
historical highs witnessed in the early 1970s.
Minimum wage:
Minimum wage legislation in Turkey dates back to 1967 and has been implemented
nationwide since 1974. The Work Law (no. 1475) stipulates that minimum wages have to be
adjusted at the latest every two years by a Committee reporting to the Ministry of Labour and
Social Security. Turkey’s experience with inflation called for frequent adjustments. Starting
with 1988, the minimum wage has been adjusted every year (in mid year), and starting with
1999, twice a year. Despite the frequent adjustments, real minimum wage has fluctuated over
the years. It increased substantially during the 1989-93 period, dropped precipitously to 1989
levels in 1994 (around US$100), slowly recovered during the second half of the 90s, and
peaked at around US$200 in 1999 before dropping to $120 per month in 2001. Up until mid
1989 a lower minimum wage applied to jobs in agriculture and forestry. A second
distinction, between the minimum paid to workers under age 16, and that paid to workers
who are 16 and over, remains in effect. The under-16 wage which was about 70 percent of
the full wage in 1989, steadily increased to 85 percent of the full amount in 1999 and
remained at that level afterwards.10 The daily minimum wage over 2000-2001 was around 25
percent of the average daily wage in manufacturing.
Wage differentials:
Data from manufacturing sector establishments with 10 or more workers -- where unions
have a strong presence -- reveal a wage hierarchy. In 1997 (the last year before crises began
to take their toll on the economy), among regular employees who were covered by CBAs,
those in the private sector (on average) earned about 83 percent of what workers in the public
sector earned. Among regular workers in the private sector, average wages of those who
were not covered by CBAs was about 53 percent of that for workers in covered
establishments. Data from 2000 and 2001 (1st period) reveal that the union-non union
differential in the private sector remained unchanged, while the public-private differential in
the covered sector widened.11
Econometric studies based on micro data inform us about various differentials, after
controlling for other observed traits of the individuals. A study based on HLFS-88Oct.
yielded a gender premium of 15 percent in favour of males, a firm-size premium of 9 percent
in establishments with 10 or more workers, a risk-premium of 4 percent for casual (rather
than regular-cum-contractual) workers, and a 4 percent penalty for rural (<20,000)
residents.12
members who pay dues, and workers who are covered by CBAs. After examining the
numbers from various sources, Koç (1998) gives an estimate of 22-23 percent in 1997. This
figure is likely to have eroded following the economic crises.
10
See Ministry of Labour and Social Security (2001), pp.161-5.
11
See *Tunalı (2002). The figures for 2000 and 2001 (I) were in the 72-75 percent range, as
opposed to 80-85 percent for 1997.
12
These estimates are reported in Tunalı and Ercan (1998), and are based on a nationwide
random sample of more than 11,000 prime age (20-54) employees who work full-time (40
hours per week or more).
8
Inter-industry differentials remain even after personal human capital characteristics of the
workers are controlled for. Workers in Mining and Quarrying, and Services are at the bottom
of the wage spectrum. Then come Trade, and Manufacturing, where workers on average earn
respectively 3 and 6 percent more. Relative to the two low wage sectors, average wages in
Finance are 13 percent higher, and those in Construction are 27 percent higher.13
Differences in education turn out to be an important source of wage dispersion, especially in
the private sector. Although slow but steady improvements over time are evident, the
educational profile in Turkey at the end of the 20th century was still highly skewed to the
right, and the average member of the labour force only had about 6 years of education.14
Nationwide survey data from the late 80s and mid 90s reveal that the rewards to education
increase with additional levels of schooling. In 1994, the annualized rate of return to
completion of high school (rather than junior high) for male wage earners stood at 10 percent
in general high schools, and 13 percent in vocational high schools. For women the figures
were 12 and 20 percent respectively. Male university graduates earned an incremental return
of 11 percent relative to general high school graduates, and 9 percent relative to vocational
high school graduates. In the case of women, the figures were 17 and 11 percent. The
earnings profiles are typically steeper in the case of private sector workers.15 As measured by
the size of the wage gap between comparable workers, women’s position improved in
government jobs, but deteriorated elsewhere.16
The decline in union power and the decline in the employment share of the public sector have
been implicated as forces that are likely to have increased wage inequality during the 80s and
90s.17 Indeed there is evidence from micro data that wage dispersion increased between late
80s and mid 90s, as a consequence of differential improvements in the returns to education.18
The summary statistics compiled in Table 2.2.1 reveal several important points.
First, although the premium for school completion rose across the board for wage earners as a
whole, the gains were particularly large at the primary and high school levels. Consequently
the incremental rate of return to graduation from junior high beyond what primary school
offered, and to university beyond what high school offered, actually fell. In other words, the
incentive to continue past primary school was lower in 1994 compared to 1988, unless the
individual had high school in mind. Similarly the rewards for going beyond high school fell.
13
Based on the results in Bayazıtoğlu and Ercan (2000), Table 3.1. They also use HLFS88Oct. but work with a different subsample: part-time workers (<40 hours per week) are
included, agricultural workers and residents of small towns (<500) are excluded. The large
premium earned by workers in the Construction sector is attributable to the risk premium that
employers have to pay, as compensation for recurrent unemployment.
14
See *Akçiğit and Tunalı (2002).
15
The reported estimates are from Dayıoğlu (2002). See also Tansel (1999a, b).
16
According to Dayıoğlu (2002), the gap increased from about 7 percent in 1988 to 20
percent in 1994 for all wage earners, and from about 10 percent to 26 percent among nongovernmental employees. In the case of civil servants, the gap that stood at about 4 percent
in 1988, was about 3 percent in favour of women in 1994.
17
See Bulutay (2001).
18
In World Bank (2000: 29), relative average wages by education level are compared using
data from the Household Income Distribution Surveys (HIDS), 1987 and 1994. In Dayıoğlu
(2002), annual earnings functions are estimated on samples of urban wage and salary earners
obtained from 1988 HLFS and 1994 HIDS.
9
Secondly, civil service jobs became less attractive for males, but more attractive for females
who have high school education or higher. Thirdly, the premium for education rose in jobs
outside the civil service, except for women who graduated from general high schools.
Fourthly, the forces that lowered the additional rate of return to junior high school relative to
primary school, and to university education, relative to high school education, were at work
across the board.
Table 2.2.1. Changes in the returns to schooling, 1988 vs. 1994
1994 - 1988 change in the
schooling coefficient
(Reference: Illiterate)
Read and Write
Primary school
Junior high school
General high school
Vocational high school
University
1994 - 1988 change in the
Rate of return per year of
additional schooling (percent)
Read and Write
Primary school
Junior high school
General high school
University vs. high
University vs. voc high
Source: Dayıoğlu (2002)
2.3
Wage Earners
Men
-0.013
0.118
0.068
0.135
0.163
-0.03
Women
0.078
0.207
0.14
0.267
0.395
0.214
Wage Earners
Men
-0.67
4.44
-1.77
2.43
3.52
-4.68
-5.40
Women
4.09
4.30
-2.45
4.63
9.73
-1.56
-5.13
Government
Non-governmental
Employees
Employees
(Civil servants)
Men Women
Men
Women
--0.082
0.092
--0.209
0.091
-0.107 -0.032
0.121
0.033
-0.11
0.199
0.138
-0.079
-0.063
0.196
0.377
0.152
-0.192
0.034
0.104
0.125
Government
Non-governmental
Employees
Employees
(Civil servants)
Men Women
Men
Women
---0.51
4.29
--4.35
4.25
-3.76
-1.13
-1.08
-3.23
-0.11
8.23
4.72
0.63
1.67
8.58
5.01
9.72
-2.33
-4.77
-6.84
-1.02
-3.52
-4.49
-7.08
-8.02
Social Security and Taxes
Social security:
According to HLFS 2000-2002, 48-50 percent of the workers in Turkey have social security
coverage. There are three major publicly administered social security institutions, with a
combined pool of over 11.8 million active participants in 2000. These are the Social
Insurance Institution [Sosyal Sigortalar Kurumu (SSK)], which is open to private sector
employees and workers in the public sector, Retirement Fund [Emekli Sandığı (ES)], which
covers civil servants, and Bağ-Kur (BK), which is a fund for the self-employed. Including
dependents and pensioners, some 57 million people, or 84 percent of the population, are
covered by the public social security system. Approximately 57 percent of the insured
population is covered by SSK, 26 percent by ES, and 17 percent by BK. The share of
privately insured individuals is a trivial 0.5 percent in the population.
The data in Table 2.3.1 provide additional information on the three main components, and
trace out the evolution of the system. In 1980 there were close to 1.3 million pensioners,
implying approximately one pension recipient for 3.65 contributors to the pay-as-you-go
system. In 2000 the number of pensioners exceeded 5.9 million, and the number of
contributors per pensioner was down to 2. The situation is especially acute in the case of
10
SSK and ES, where the ratio of contributors to pension recipients was under 2 in 2000. To
view the burden from another perspective, there were 5.1 beneficiaries per active SSK
member in 1980, and 5.12 in 2000. During the same time this figure rose from 4.1 to 4.51 in
the case of ES, and from 4.13 to 4.54 in the case of BK.
Table 2.3.1. Social security system, 1980-2000
INSTITUTIONS
I. THE SOCIAL INSURANCE INSTITUTION
1. Active Insured
2. Voluntary Active Insured (2)
3. Active Insured in Agriculture
4. Pensioners
5. Dependants (1)
Total
1980
1985
1990
1995
2000
2,204,807
2,607,865
3,446,502
4,410,744
5,254,125
-
-
300,000
980,841
843,957
-
18,300
74,407
253,463
184,675
635,815
1,070,681
1,596,634
2,337,755
3,339,327
8,407,100
10,654,600
13,561,000
18,555,865
22,541,181
11,247,722
14,351,446
18,978,543
26,538,668
32,163,265
Active insured per pensioner = (1+2+3)/4
3.47
2.45
2.39
2.41
1.88
Beneficiaries per active insured = Total/(1+2+3)
5.10
5.46
4.97
4.70
5.12
1,325,000
1,400,000
1,560,000
1,880,437
2,163,698
495,669
680,142
843,443
952,360
1,296,935
3,605,604
3,798,440
4,179,698
5,291,090
6,305,218
5,426,273
5,878,582
6,583,141
8,123,887
9,765,851
Active insured per pensioner = 1/2
2.67
2.06
1.85
1.97
1.67
Beneficiaries per active insured = Total/1
4.10
4.20
4.22
4.32
4.51
1,100,500
1,613,645
1,967,379
1,791,246
2,220,014
-
68,102
107,502
82,205
216,532
-
105,563
750,592
795,900
876,148
II. THE RETIREMENT FUND
1. Active Insured
2. Pensioners
3. Dependants (1)
Total
III. BAĞ-KUR
1. Active Insured
2. Voluntary Active Insured
3. Active Insured in Agriculture
4. Pensioners
5. Dependants (1)
Total
Active insured per pensioner = (1+2+3)/4
Beneficiaries per active insured = Total/(1+2+3)
Total population
1. Share of all active insured
2. Share of pensioners
3. Share of dependants
Share of all with social security coverage
138,317
294,469
595,889
880,820
1,277,444
3,301,500
5,918,977
7,911,324
8,282,543
10,446,180
4,540,317
8,000,756
11,332,686
11,832,714
15,036,318
7.96
6.07
4.74
3.03
2.59
4.13
4.48
4.01
4.43
4.54
44,737,000
50,664,000
56,473,000
61,644,000
67,804,000
0.10
0.11
0.15
0.17
0.17
0.03
0.04
0.05
0.07
0.09
0.34
0.40
0.45
0.52
0.58
0.47
0.56
0.65
0.75
0.84
Source: The Retirement Fund (ES), Social Insurance Institution (SSK), Bağ-Kur, SPO (DPT), SIS (DİE).
(1) Estimate. Excludes Veterans and those under the coverage of Law No.2022.
(2) The dependants of voluntarily insured person are subsumed under the coverage of social insurance schemes.
The payroll tax is the second significant tax on employee income.19 Excluding the
unemployment insurance (UI) premiums, the contribution rate for workers covered by SSK
ranges between 33.5 percent and 39 percent of insurable earnings. The variation is due to
differences in the occupational risk premium (1.5-7 percent) paid by employers, which is
19
Information on the contribution rates was provided by the Treasury. A detailed discussion
of tax incidence and calculations of the welfare burden may be found in Zenginobuz (1999).
11
typically around 2.5 percent. The rates are 3 percentage points higher for workers who
qualify for UI benefits. Employees contribute as much as 15 percent (5 percent for health
insurance, 9 percent towards retirement benefits, plus 1 percent for UI), while employers in
the typical risk occupation contribute as much as 22.5 percent (6 percent for health insurance,
11 percent towards retirement benefits, 2.5 percent towards work injury and occupational
disease risks, 1 percent as maternity benefits, plus 2 percent for UI).20 The effective rates
depend on the income floor below which a minimum tax applies, and the ceiling above which
earnings are not insurable (but are still taxed). The nominal floor is adjusted annually by a
multiplier which equals the product of the previous years’ inflation rate (based on the CPI)
and the GDP growth rate. The ceiling is set as five times the base.
In the case of ES, the contribution rate is about 35 percent of insurable earnings. The public
servant pays 15 percent, while the State pays 20 percent. Self-employed individuals covered
by BK need to contribute about 20 percent of their earnings towards their retirement pension,
and 20 percent towards health insurance.
Reform of the Social Security system:
Historically surpluses from the funds collected by the Social Security system have typically
been invested in government bonds. Prior to the initiation of the system of public auctions in
1985, government bond yields were often below the inflation rate. Consequently the
accumulated surplus of SSK up until this time was all but wiped out. Combined with the
increased cumulative burden on SSK and ES discussed above (see Table 2.3.1), this
threatened the solvency of the social security system. The situation was especially grim in
the case of SSK, because of compliance problems that were exacerbated in the 90s. The
retirement system was overhauled in 1999, the main aims being the restoration of the
actuarial integrity of the entire system, and solvency of SSK. Legal challenges to the
grandfather clauses delayed the implementation of the legislation until May 2002. It used to
be the case that women could choose to retire at age 38, providing they had 20 years of
continuous employment. In the case of men the thresholds were 43 years of age, and 25
years of employment. According to the new law, for a new entrant the minimum age of
retirement is 58 for women, and 60 for men. All retiree incomes are indexed to inflation,
except those paid out by the ES.
In an attempt to reduce the State’s dominance in the sponsorship of retirement benefits, a new
personal pension scheme for workers and the self-employed was legislated in April 2001. It
is based on voluntary contributions and is designed to supplement public pensions.
Employers can also contribute to the system on behalf of their employees. Contributions up
to 10 percent of gross earnings, but limited by the total annual minimum wage, are deductible
from the payroll tax contributions. The fund is managed by private pension companies and is
overseen by the Treasury.
Taxes:
Tax on personal income, which was about 7.5 percent of GDP in 1999, constitutes the most
important single source of tax revenue in Turkey. According to Bulutay and Bölükbaşı
(1999), personal income tax paid by employees accounted for a little over 3 percent of the
GDP in 1996. They estimated the share of direct taxes less rebates (on VAT) to be around
20
In the UI law, the contributions were originally set at 2 percent for the employee, and 3
percent for the employer. In response to the 2001 crisis, these shares were reduced by 1
percentage point in the Budget Law passed in 2002. The State contributes an additional 2
percent to the UI fund.
12
13.5 percent of employee income. Social security contributions account for slightly less than
half of the total. Thanks to the rebates, the share of taxes paid by employees on wage and
salary income actually fell after 1987. When employer’s shares are added, the total tax
burden on wage labour reaches 30 percent of payments to employees. There is evidence that
the collection system is becoming more efficient. The fraction of the tax that is actually
collected was 82.8 percent in 1994, 85.6 percent in 1995, and 88.1 percent in 1996.21
According to OECD data, in 1999 total tax receipts in Turkey amounted to 31.3 percent of
GDP (OECD average = 37.3 percent; EU average = 41.6 percent). The shares of main tax
sources, as a percent of total tax revenue were as follows (OECD/EU averages are given in
parentheses): Personal income tax 23.8 (OECD=26.3/EU=25.6) percent; corporate income
tax 7.6 (8.8/8.7) percent; employee share of social security contributions 6.9 (7.3/8.2)
percent; employer share 8.8 (14.9/15.6) percent; taxes on goods and services 35.9
(31.7/30.9) percent; other taxes 17 (11/11.5) percent.22
In 1998, there was an attempt at reform but the proposed changes were dropped in 1999. No
pending reform plans are known to be in the government agenda. To improve tax collection,
Tax ID numbers were introduced several years ago, and are required in all banking
transactions as of the beginning of 2002.
Income tax:
The income tax schedules for 2001 and 2002 applicable to wage income are shown in Table
2.3.2. In addition to income tax, wage and salary earners pay a ‘stamp tax’ at the rate of 0.6
percent.23 The marginal tax rate for income from non-wage sources is 5 percent higher at
each income bracket. Between 2001 and 2002 the nominal brackets were adjusted upwards
by 35.71 percent. By contrast, the CPI jumped by 73.16 from January of 2001 to 2002.
Consequently the income tax became more regressive. An individual who had wage and
salary income of TL20 billion in 2001 paid tax at the average rate of 22.6 percent. Assuming
that the nominal income of this individual got fully adjusted for inflation, his/her average tax
rate (ATR) in 2002 rose to 23.1 percent. If the calculations are repeated for someone with an
annual income of TL70 billion in 2002, the change in the ATR is found to be 2 percentage
points, from 30.8 to 32.8 percent.
Table 2.3.2. Income Tax brackets, 2001 and 2002*
2001
2002
Maximum
schedule
schedule
average tax rate
(billion TL)
(billion TL)
(percent)
min
max
min
max
15
0.0
2.8
0.0
3.8
15
20
2.8
7
3.8
9.5
18
25
7.0
14
9.5
19
21.5
30
14.0
35
19.0
47.5
26.6
35
35.0
70
47.5
95
30.8
40
70.0
95.0
---> 40
Source: http://www.gelirler.gov.tr/gelir2.nsf
*Average exchange rate was US$1 = 1.2 mil. TL in 2001 and 1.5 mil. TL in 2002.
Marginal tax rate
(percent)
21
See Bulutay and Bölükbaşı (1999) pp.73, 78, and Table 4B.
OECD (2002: 38-39). http://www1.oecd.org/publications/e-book/0102071E.PDF.
23
Information on the stamp tax was obtained from the Comptrollers Office at Koç
University.
22
13
2.4
Key Issues
The 90s were characterized by a moderate average growth rate of about 3.5 percent per
annum but a dismal average annual employment growth record at about 1.5 percent. As a
result of the 2001 crisis, Turkey found itself in the deepest recession of the last fifty years.
In a span of two years the number of unemployed individuals doubled, and exceeded 2.8
million during the first quarter of 2003. An overwhelming majority of those lucky enough to
have jobs saw their standard of living erode as real wages came crashing down. Increased
wage inequality and lack of an adequate safety net for those without jobs, threaten the social
contract. High income and payroll taxes, and a regressive tax structure, provide ample
incentives for tax dodging and contribute to the ‘informalization’ of the economy.
General elections held in November 2003 installed Turkey’s first single party government in
more than a decade. As it searches for solutions to the country’s ills, the new government has
to live with constraints that it inherited, such as an independent Central Bank, and the 6.5
percent primary budget surplus requirement of the standby agreement with the IMF.
14
3.
Employment
3.1
General trend
By way of establishing what the employment trends looked like before the shocks came, it is
useful to examine data from the 1988-1998 period. During this decade total employment (of
individuals aged 12 and above) grew at the rate of 1.5 percent per annum, from about 19
million to about 22 million. At the same time the number of individuals between the ages of
20 to 54, the subpopulation from which the bulk of the work force is drawn, grew by more
than 3 percent per annum.24
In urban areas the growth rate was more than double this figure, approaching 3.2 percent per
annum. Consequently the share of the employed in urban areas increased from 38 percent to
45 percent. In the meantime the share of the urban population increased from about 58
percent to 64 percent. The wide gap between the population and employment shares is
attributable to the role of agriculture.
The share of females in total employment declined from 31 percent to 29 percent while the
absolute numbers increased at an average annual rate of 0.76 percent. These figures conceal
the changing role of women in the workforce. In fact, the share of females working in urban
areas increased from 19 percent to 27 percent of total female employment. During this time
the share of females among workers located in urban areas increased from 15 percent to 18
percent, and the urban female work force registered an average growth rate of 4.8 percent per
annum, significantly higher than the urban male work force which grew at the rate of 2.9
percent per annum.
Women turned to the marketplace in increasing numbers. Among female workers in urban
areas, the share of regular and casual wage and salary workers increased from 75.1 percent to
82.3 percent. Share of self-employment decreased from 10.1 to 6.2 percent; share of unpaid
family work decreased from 13.9 to 9.2 percent. In terms of absolute numbers, there were as
many self-employed women in 1988 and 1998 (106 thousand), and roughly the same number
of unpaid family workers (147 thousand in 1988, 158 thousand in 1998). During this time the
number of wage and salary workers increased by about 80 percent, from 792 thousand to 1.4
million. Number of female employers increased four fold, and accounted for 2.3 percent of
the urban female work force. Number of casual female workers increased from 73 thousand
to 107 thousand, but their share in the urban female work force decreased from 9 percent to
7.5 percent. As we discuss in some detail in Chapter 4, these compositional changes took
place against a background of stagnant female labour force participation rates in urban areas.
In Figures A3.1.1-A3.1.4 in Annex 1, employment ratios for the period 1989-99 are plotted
by age group, separately by sex, and location.25 The gender differences are considerable
(except for the youngest age groups) and are amplified in the urban areas. As children stay in
school longer, employment ratios of 12-14, and 15-19 year olds have fallen over time,
24
This is a guesstimate, based on age-group-specific projections done by Frederick Shorter,
using census data up to 1990. Model 2M, the preferred alternative reported in SIS (1995)
yields an average of 2.92 percent for the 1990-2000 period and a total population of 66.8
million in 2000. According to the 2000 General Census, total population was 67.8 million,
one million more than that predicted by model 2M. Presently age breakdown of the
population in 2000 is not available. Applying Shorter’s 1995 estimate of 0.46 for the share of
the 20-54 year old individuals in the total population, we arrived at the revised estimate of
3.06 percent per annum for the growth rate of the subpopulation of interest.
25
Circles mark the observations available in the biannual HLFS.
15
especially for the youngest in rural areas. Employment ratios of older females (60 or over),
and males (65 or over) rose in rural areas, possibly because of improved health. In urban
areas male employment ratios fell for adults. By contrast female employment ratios rose for
young adults (20-24 and 25-29). The difference is attributable to the fact that employment
growth has been especially fast in sectors such as textiles and services, where females are
favoured.
3.2
Structural Changes in Employment
According to the 1975 General Census, Turkey had a workforce (of age 12 and over) of 15.2
million. Close to sixty percent of the total was employed in agriculture, 14 percent in
industry, about 5 percent in construction, and close to 22 percent in services. In 1990 the
workforce was 19.3 million (18.2 million of which were 15 years old or older), and the shares
were over 46 percent in agriculture, around 15 in industry, 5 percent in construction, and 33
percent in services.26 The shift away from agriculture continued throughout the 90s. As of
2000, a little more than 34 percent of the workforce (of age 15 and over, which was 20.1
million strong), was still in agriculture. Services had emerged as the new leader, at over 40
percent. Industry accounted for around 18 percent and construction for 6 percent.
In the case of the female work force, share of agriculture declined from around 77 percent in
1990 to about 60 percent a decade later.27 Among females working in urban areas the share
of agriculture dropped from 15 percent in 1990 to 9 percent, while the share of services
increased from 39 percent to 64 percent. Manufacturing remained as the second most
important sector of employment for urban females although its share decreased from 31
percent to 26 percent in total.
Female concentration in services increased remarkably, as their employment share in the
service sectors increased from 13 to 17 percent. In 1990 female workers accounted for about
28 percent of the work force in commercial services and 19 percent of those in community
and personal services. Ten years later these figures were 30 percent and 27 percent
respectively. The share of females in manufacturing remained stable, around 18-19 percent.
Although they remained far from parity, females registered gains in white collar occupations.
In ten years their share among scientific and technical personnel and professionals, rose from
around 30 percent to 35, and among administrative personnel from around 32 percent to 37.
Data from the civil service, which has traditionally been the primary employer of educated
women, provide evidence of the ‘glass ceiling’ phenomenon. According to a survey
conducted by the State Personnel Department (SPD) [Devlet Personel Başkanlığı] in 1994,
92.4 percent of general managers in the public sector are males. Among females who hold
middle level management positions, 80 percent are supervisors, 15 percent are section heads
26
According to the 1990 Census, 23.4 million people worked. Sector shares were 53.9
percent in agriculture, 12.9 percent in industry, and 28.1 percent in services. Taştı and
Daşkıran (1999: 9) attribute the differences between the HLFS and Census figures to
differences in definitions and coverage.
27
There is reason to believe that the change recorded in the sectoral composition of
employment between 1990 and 2000 is overstated. As we discuss in some detail in section
3.4, the largest observed drop in the agricultural workforce coincided with the switch from
the biannual to the quarterly version of the HLFS.
16
and 3.7 percent are department heads. Among females the same fractions are respectively
51.3, 38.4 and 6 percent.28
3.3
Employment in the Private Sector
A large government bureaucracy and state involvement in industrial and agricultural
production are legacies of the early Republic which are still present 75 years later. Since the
introduction of the multi-party system in 1946, both central and local governments have
rewarded their constituents by using their power to hire new employees. Despite
improvements in life expectancy, tenure and minimum age requirements for retirement with
full benefits were kept at generous levels in the 80s and 90s to assure broader spread of the
benefits of public sector employment. Although legislation increasing the minimum
retirement age (from 43 to 60 for males, and 38 to 58 for females) cleared the Parliament
back in 1999, legal challenges stalled implementation until recently.
The share of the public sector in total wage and salary employment has been estimated at
around 33 percent in 1990, 28 percent in 1996, and 12 percent in 1998.29 The shedding of the
public workforce has mainly been implemented by privatization of the State-owned
Economic Enterprises (SEE). Privatization has been on the agenda since the policy shift
announced back in 1980, as part of the so-called “January 24” reform plan. The impetus for
privatization was renewed following the crisis in April 1994 and a special office known as
the Privatization Administration (PA) was set up under the Prime Ministry of Turkey.30 This
office is involved in programs that seek to mitigate the unemployment consequences of
privatization. The web page of the PA indicates that 46 percent of the displaced workers
have used the services provided under the Labour Force Adjustment Project [İşgücü Uyum
Projesi]. Data on the total amount of funds raised from privatization over 1985-2002
suggests that dislocation may have been especially severe after the sales in 1998 and 2000.31
Data from the top 500 industrial establishments in Turkey underscore the continuing
significance of the public sector in terms of employment. In 2001, while ten largest
establishments in the private sector (in terms of personnel size) on average employed a total
of 42,779 workers, ten largest SEEs combined had 137,509 workers.32 Many of the latter are
on the auction block.
28
The information has been provided by the General Directorate of the Status and Problems
of Women (GDSPW) [Kadın Statütüsü ve Sorunları Genel Müdürlüğü].
29
These figures are from Tansel (2001). Based on the 1994 HIDS, public sector employees
accounted for just over 10 percent of the workforce and 33 percent of all wage and salary
workers (World Bank, 2000, p.67). Public sector includes employees of the central
government administration, local administrations (municipalities), and SEEs. A detailed
examination of employment patterns up until 1998, broken down by the three components
and employment status of the workers, may be found in Tansel (2001).
30
Information on this office is available on the web, at http://www.oib.gov.tr.
31
See http://www.oib.gov.tr/Implementations.htm. At the end of 2000, a 4-year Privatization
Social Support Project was initiated and a fund for US$355.3 million was set up within the
framework of the economic support programs negotiated with the IMF and the World Bank.
These funds were to be used for covering severance and job loss compensation payments of
displaced workers, and for financing counselling and training services aimed at their
reemployment. For additional information, see http://www.oib.gov.tr/sp-index.htm.
32
Radikal, July 26, 2002. The figures are based on the results of a survey conducted by the
İstanbul Chamber of Industry, titled “500 Largest Industrial Establishment of Turkey in
2001.”
17
Figure 3.3.1, based on data collected bi-annually (in January and July) by the Ministry of
Labour and Social Security [Çalışma ve Sosyal Güvenlik Bakanlığı], from establishments
covered by Unions Law No.2821 provides a clear sense of the direction of change in the 90s
and beyond. Based on July-to-July figures, during the decade 1991-2001, number of workers
in private establishments grew at an average annual rate of 4 percent (from 2,560 to 3,774
thousand), while the number in the public sector shrunk by 1.9 percent (from 953 to 789
thousand, after peaking at 1,045 thousand in January 1994). During this period the
employment share of the private establishments rose from 72.9 to 82.7 percent.
Figure 3.3.1. Number of contractual workers by establishment type and private share
4,000,000
3,500,000
3,000,000
84.0%
82.0%
80.0%
78.0%
2,500,000
76.0%
2,000,000
74.0%
private
public
priv_share
1,500,000
72.0%
1,000,000
500,000
68.0%
66.0%
tim
e
19
91
.7
19
92
.1
19
92
.7
19
93
.1
19
93
.7
19
94
.1
19
94
.7
19
95
.1
19
95
.7
19
96
.1
19
96
.7
19
97
.1
19
97
.7
19
98
.1
19
98
.7
19
99
.1
19
99
.7
20
00
.1
20
00
.7
20
01
.1
20
01
.7
0
70.0%
Source: Ministry of Labour and Social Security (2001), pp.137-8.
HLFS data from 1995-2001 available on the SIS web page allow us to capture recent trends
from another perspective. We rely on the question on the workplaces of the workers and
keep track of those employed in public and “fixed” private establishments. The remaining
choices are field, market place, mobile, irregular, home, and a residual category. Since those
who do not work in fixed places are in all the private sector, our measure underestimates the
size of the workforce in the private sector and overestimates the employment share of the
public sector. Thus the private-public distinction we are able to draw is not perfect, but is
consistent over time. Since agriculture dominates economic activities in rural areas, we focus
on urban areas and disaggregate the data by sex and 5-year age groups.33 We average the
data for 1995-96 and 2000-01 (to minimize measurement errors) and examine the changes
that took place over a period of five years in the mix and number of employees in public and
fixed private establishments, which constitute nearly 80 percent of the total for both males
and females.34
33
The Law on Civil Servants stipulates 18 as the “general” minimum age for becoming a
civil servant, and indicates that exceptions could be granted to vocational and technical
school graduates who are at least 15 years old. Consequently few public sector jobs are
available for those in the 15-19 age group.
34
The details may be found in *Öztürk and Tunalı (2002).
18
Between 95-96 and 2000-01, the size of the urban workforce working in public and fixed
private establishments increased by 15 percent, from 6,437 thousand to 7,415 thousand. The
share of private establishments rose from 75 to 77 percent of the total. In Figures 3.3.2 and
3.3.3 the distributions of the public-by-age and private-by-age shares are graphed (using the
abbreviated labels public and private) respectively for urban males and urban females. Note
that the public sector share is higher for females than for males. Since the shares sum to 1 in
each period, we are able to infer that the employment share of the public sector declined
across the board.
Figure 3.3.2. Share of the male urban workforce in fixed workplaces by age and
establishment type
Shares of Public and Private Employment, Urban, Males, 1995-96 vs. 2000-01 averages
0.18
0.16
0.14
0.12
0.1
0.08
0.06
0.04
0.02
0
15-19
20-24
25-29
30-34
Public95-96
35-39
40-44
Private95-96
45-49
Public-00-01
50-54
55-59
60-64
65+
Private-00-01
Source: HLFS 1995, 1996, 2000 and 2001, as reported in *Öztürk and Tunalı (2002), Figure 5.
Figure 3.3.3. Share of the female urban workforce in fixed workplaces by age and
establishment type
Shares of Public and Private Employment, Urban, Females, 1995-96 vs. 2000-01
averages
0.2
0.15
0.1
0.05
0
15-19
20-24
25-29
30-34
Public95-96
35-39
Private95-96
40-44
45-49
Public-00-01
50-54
55-59
60-64
65+
Private-00-01
In Figures 3.3.4 and 3.3.5 we repeat the exercise using the absolute numbers, rather than
shares. In a stationary environment without new recruits and retirement, the curve for 199596 would simply shift to the right by one age group by 2000-01. Evidently the public sector
continued to hire younger workers (ages 15-39 in the case of males, 15-34 in the case of
females). There is evidence that males were hired at a slower rate, while females were hired
at a faster rate. Although legislation increasing the retirement age did not become effective
19
until 2002, we find that the absolute number of males in the 40-49 age bracket and females in
the 40-44 bracket increased. This might be attributable to a reduction of opportunities in the
private sector. As seen in Figures 3.3.2 and 3.3.3, although the share of younger private
sector employees increased over the 5-year period, the shares of males above 50 and females
above 45 have stagnated.
Figure 3.3.4. Size of the male urban workforce in fixed workplaces by age and
establishment type
Public vs. Private Employment Shares, Urban, Males, 1995-96 vs. 2000-01 averages
1200
Thousands
1000
800
600
400
200
0
15-19
20-24
25-29
Public95-96
30-34
35-39
40-44
Private95-96
45-49
50-54
55-59
Public00-01
60-64
65+
Private00-01
Figure 3.3.5. Size of the female urban workforce in fixed workplaces by age and
establishment type
Public vs. Private Employment Shares, Urban, Females, 1995-96 vs. 2000-01 averages
350
Thousands
300
250
200
150
100
50
0
15-19
Public95-96
20-24
25-29
30-34
35-39
Private95-96
40-44
45-49
Public00-01
50-54
55-59
60-64
65+
Private00-01
3.4
Regional distribution of employment
The sampling frame of the HLFS prior to 2000 was not suitable for arriving at regional labour
force statistics. To establish the regional contours, we rely on the population, employment
and output figures from the 1990 General Census, given in Table 3.4.1. Comparable data
from the 2000 Census are presently unavailable.
Turkish publications typically distinguish between seven regions. These are (1990
population shares among people 12 years or older are given in parentheses): Marmara region
20
in the northeast (25.1), Aegean region in the west (14.2), Black Sea region in the North
(14.4), Central Anatolian region in the middle (17.8), Mediterranean region in the south
(12.3), Eastern Anatolian region in the east (8.8), and South Eastern Anatolian region in the
southeast (7.4).
Table 3.4.1. Regional employment and output in 1990
Share of
All sectors
Agriculture
region in
Emp.
Share of
Output
Share of
Share of
Output
population
ratio
region in
per head
region in
Ag. empl.
per head
employment
(Total=100)
Ag. empl.
in total
(Total=100)
22.6%
157.92
12.2%
29.1%
161.56
Regions
age 12+
Marmara
25.1%
51.7%
Aegean
14.2%
60.4%
15.0%
105.55
15.1%
54.4%
126.03
Mediterranean
12.3%
57.5%
12.3%
97.65
13.2%
57.7%
114.07
Central Anatolia
17.8%
53.3%
16.6%
101.68
15.6%
50.7%
104.46
Black Sea
14.4%
65.1%
16.4%
60.35
21.7%
71.3%
69.63
Eastern Anatolia
8.8%
64.2%
9.8%
42.58
13.1%
71.9%
48.07
Southeastern Anatolia
Turkey
7.4%
56.5%
7.3%
75.34
9.1%
67.5%
93.31
100.0%
57.3%
100.0%
100.00
100.0%
53.9%
100.00
Source: 1990 Census, as reported in Taştı and Daşkıran (1999: 73).
In 1990 the Marmara region, which stands out as the industrial heartland of Turkey,
accounted for 35.7 percent of GDP and 22.6 percent of total employment. Regions with
sizeable shares in output were Central Anatolia (16.8 percent), Aegean (15.8 percent) and
Mediterranean (12 percent). In terms of employment Central (16.6 percent), Black Sea (16.4)
and Aegean (15 percent) regions had sizeable shares. While Eastern region had the lowest
share of GDP (4.2 percent), South Eastern region had the lowest share of employment (7.3
percent).
Central Anatolia contains Ankara, the capital city, where government functions are centred.
This region is the breadbasket of the country. Mediterranean, Aegean and Marmara regions
specialize in cash crops. Bursa, Kocaeli and İstanbul in the Marmara region, İzmir in the
Aegean, and Adana and Mersin in the Mediterranean are provinces which boast a high
concentration of population and industrial activity. Mountain ranges in the Black Sea and
Eastern Anatolian regions and lack of irrigation facilities in the South Eastern Anatolian
region have historically imposed limits on land use and agricultural activity. These regions
are characterized by high rates of out-migration directed towards provinces in the Marmara,
Aegean and Mediterranean regions where the industrialization effort of the 60s and 70s has
had the biggest impact.
To provide a sense of where things stood in 2000, we include the figures from HLFS 2000
given in Table 3.4.2. Note that it is not possible to establish trends because the information in
Tables 3.4.1 and 3.4.2 are not strictly comparable. The former relies on an age cut-off of 12,
while the latter uses 15 as the threshold. Agricultural activities are not confined to rural
areas, nor are rural areas limited to agriculture. The Census definition of employment is
broader than the ILO version used in the HLFS.
With these in mind, we refrain from comparisons over time and concentrate on regional
patterns. The ranking of regions by employment ratio reflects the significance of
agricultural/rural employment. The Black Sea region, land-constrained but blessed with
favourable climate, boasts the highest employment ratio, ahead of the others by a comfortable
21
margin. The Eastern Region, also land-constrained and without a favourable climate, ranks
second.
Table 3.4.2. Regional employment in 2000
Share of
All
Urban
Rural
region in
Emp.
Share of
Emp.
Share of
Emp.
Share of
population
ratio
region in
ratio
region in
ratio
region in
Regions
age 15+
employment
employment
employment
Marmara
28.4%
43.6%
26.9%
41.9%
38.4%
50.6%
13.7%
Aegean
14.3%
46.4%
14.4%
41.5%
13.0%
52.1%
16.0%
Mediterranean
12.7%
41.3%
11.4%
38.0%
11.3%
45.9%
11.4%
Central Anatolia
17.3%
41.0%
15.4%
36.9%
16.2%
47.9%
14.5%
Black Sea
12.0%
62.0%
16.2%
42.1%
8.0%
74.6%
25.7%
Eastern Anatolia
7.3%
47.5%
7.5%
34.9%
4.9%
59.1%
10.5%
Southeastern Anatolia
8.1%
46.1%
8.2%
38.5%
8.1%
59.2%
8.3%
100.0%
46.0%
100.0%
39.8%
100.0%
55.9%
100.0%
Turkey
Source: HLFS 2000.
When the data are broken down by gender, striking differences emerge. Figures 3.4.1 and
3.4.2 show the regional patterns in urban areas, respectively for males and females, for 2000
and 2001. In the case of males, employment ratios have declined everywhere, as a
consequence of the recession. Largest decline is observed in the Mediterranean region (by
3.7 percentage points) followed by Southeastern (3.1), Aegean (2.7) and Marmara (2.6)
regions. As measured by the range (= max – min), the regional gap in the employment ratio
declined from 8 percentage points in 2000 to 6 in 2002.
Figure 3.4.1. Male employment ratios in Urban areas, 2000 and 2001
Employment ratio, Males - Urban
80
60
40
20
0
Marmara
Aegean
Urban - 2000
Mediter.
Central
Urban - 2001
Black Sea
Urban TR - 2000
Eastern
Southeast
Urban TR - 2001
Source: HLFS 2000 and 2001, as reported in *Başlevent (2002), Figure 8b.
In the case of females, regional differences are considerably larger, even though the national
average is much lower than that for males. Eastern and Southeastern regions, which lag
behind the rest of the country in terms of developmental indicators, have female urban
employment ratios which are less than one half of the nationwide average. Evidently the long
standing patterns of regional inequality have a lasting impact on the labour market
opportunities available to females in urban areas. Furthermore, regional gaps have been
augmented as a result of the recession. The range increased from 13 percentage points in
2000 to 15.4 in 2001. Surprisingly employment ratios in the Black Sea and Mediterranean
22
regions increased (respectively by 0.4 and 0.7 percentage point), despite the overall
reduction.
Figure 3.4.2. Female employment ratios in Urban areas, 2000 and 2001
Employment ratio, Females - Urban
25
20
15
10
5
0
Marmara
Aegean
Urban - 2000
Mediter.
Central
Urban - 2001
Black Sea
Eastern
Urban TR - 2000
Southeast
Urban TR - 2001
Source: HLFS 2000 and 2001, as reported in *Başlevent (2002), Figure 9b.
3.5
Rural Employment
According to the biannual HLFS, the workforce (15+) in agriculture which was 8.3-8.5
million strong in 1989-90, peaked at 8.8 million in 1991, was down to 7.5 million in 1993,
and stood at over 8.6 million in 1999. According to the quarterly HLFS, the number was
around 6.8 million in 2000 and 2001. It is hard to believe that agricultural employment fell
by 1.8 million from 1999 to 2000, a reduction of more than 20 percent. There is good reason
to believe that the dramatic reductions in farming subsidies rendered agriculture less and less
attractive over time, starting with the mid 90s.35 Nonetheless the dramatic reduction from
1999 to 2000 probably has more to do with the changes in the sample frame than with
economic trends. Given the improvements in methodology, the quarterly HLFS should
provide a more accurate picture.
In 2001 agriculture accounted for 14 percent of the GNP, but more than 40 percent of
Turkey’s entire workforce (age 15 or over), and close to 70 percent of the female workforce.
An overwhelming majority of the rural population (estimated at 23 million in 2001) derived
its livelihood from agriculture. Despite half a century of commercialization and massive
rural-urban migration, family farms continue to be the dominant organizational unit in rural
Turkey. In 2001 there were about 4 million such establishments nationwide.36 These
typically rely on the labour of household members (who are classified as unpaid family
labour in the HLFS). Farming subsidies have played an important role in maintaining low
35
Historically there have been three major forms of state involvement in agriculture: product
price supports, subsidized credit, and input price subsidies (see Gürkan and Kasnakoğlu,
1991). Total support amounted to about $5 billion in 1995. The figure was down to $3
billion in 1999, $1.5 billion in 2000, and 0.8 billion in 2001. In 2001, subsidized credit and
inputs comprised around 60 percent of state support directed to farmers. The Government
recently began experimenting with direct income support using program funding from the
World Bank. Around 2.3 million farmers applied for $1 million slated for disbursement over
2001-2. (Figures provided by Rahim Yeni, Ministry of Agriculture.)
36
Estimate provided by Rahim Yeni, Ministry of Agriculture.
23
productivity family farms and curbing rural-urban migration.37 After the economic crisis in
2001, the mounting pressure to keep the Government’s finances under control has resulted in
further reductions in farming subsidies. This is likely to result in faster transfers of surplus
labour from the countryside to cities.
During harvest season, news of temporary migrants who travel long distances in search of
seasonal work to pick industrial cash crops (such as cotton and filberts), abound in
newspapers. Changes in the size of the seasonal workforce in agriculture over time are
difficult to pin down because of the biannual frequency of the HLFSs conducted between
1998-99. In 2000, SIS estimates that there were 242 thousand males and 105 thousand
females (15 years of age or older) who worked for pay in agriculture as irregular (seasonal,
casual, or temporary) workers. A year later the numbers were 180 thousand for males, and
107 thousand for females. Between 80-85 percent of these males, and 62-67 percent of the
females were resident in rural areas. Taken at face value, irregular workers amounted to 5-6
percent of the male, and around 3 percent of the female workforce in agriculture. Notably,
while irregular workers in agriculture accounted for only 12-13 percent of the irregular male
workforce, they constituted a much larger share of the irregular female workforce, at around
42 percent.
Data from rural areas reported in Table 3.4.2 help in establishing the regional patterns. The
Black Sea region which is land-constrained, but has the benefit of a suitable climate boasts by
far the highest employment ratio (at 74.6 percent) and highest share of the rural workforce.
Even though it contains 12 percent of Turkey’s population of age 15 and higher, it provides
jobs for close to 26 percent of the rural workforce. Eastern and Southeastern Anatolia, two
other land-constrained regions that do not have the benefit of a suitable climate, have the
second highest employment ratio (at around 59 percent).
The contrast between Figures 3.5.1 and 3.5.2 reveals that gender gaps are present in rural
areas, as well as urban areas. Recall that the three regions to the left (of the Central region)
are the relatively more developed west and the south, and the three on the right are the
relatively less developed north and the east. The variations in the employment ratio across
regions follows the broader contours observed in Table 3.4.2, except the differences are
amplified in the case of females. Following the economic crisis, female employment ratios
have gone up in four of the seven regions, most notably in the Marmara and Aegean regions
(respectively by 6.3 and 4 percentage points) to bring them closer to the national average. It
appears that agriculture operated as a safety net in the relatively more advanced regions
which were hit worst by the recession.
37
According to recent figures quoted by Prof. Ahmet Şahinöz of Ankara University, the
agricultural workforce in the EU15 is about as large as that in Turkey as of the end of the 90s
(around 9 million). While value added in agriculture is around $300 million in the EU15, it is
barely $10 million in Turkey.
24
Figure 3.5.1. Male employment ratios in rural areas, 2000 and 2001
Employment ratio, Males - Rural
100
80
60
40
20
0
Marmara
Aegean
Rural - 2000
Mediter.
Central
Rural - 2001
Black Sea
Eastern
Rural TR - 2000
Southeast
Rural TR - 2001
Source: HLFS 2000 and 2001, as reported in *Başlevent (2002), Figure 8c.
Figure 3.5.2. Female employment ratios in rural areas, 2000 and 2001
Employment ratio, Females - Rural
80
60
40
20
0
Marmara
Aegean
Rural - 2000
Mediter.
Central
Rural - 2001
Black Sea
Rural TR - 2000
Eastern
Southeast
Rural TR - 2001
Source: HLFS 2000 and 2001, as reported in *Başlevent (2002), Figure 9c.
3.6
Child Labour
The broad picture of employment in Turkey would be incomplete without an account of child
labour. In 1991 Turkey joined the International Program on the Elimination of Child Labour
(IPEC) initiated by the ILO. In 1998 it signed the ILO Convention 138 which establishes 15
as the minimum age of employment and calls for progressive increases in the minimum.
Based on the regular rounds of the HLFS, a steady decline in child labour is evident. The
fraction of those employed in the age group 12-17 declined from 31.8 percent in 1988 (36.5
percent for males, 26.9 for females) to 13.9 percent in 2001 (16.8 percent for males, 10.8 for
females). Two special modules appended to the October rounds of the 1994 and 1999 HLFS
provide data on a broader age group. The first survey collected detailed information on 6-14
and the second on 6-17 year-old children who were resident members of a household. Street
children were not included in the sampling framework. Children in the 6-14 age group
accounted for just under 20 percent of the civilian, non-institutional population in both years
(19 percent in 1994, 19.4 percent in 1999). In five years the number of ‘working’ children in
the 6-14 age group decreased from 974 thousand (8.5 percent in 1994) to 511 thousand (4.2
25
percent in 1999).38 The fraction of working children decreased from 9.9 percent to 4.9
percent in the case of males, and from 7.1 percent to 3.6 percent in the case of females.
While children in the 6-14 age group accounted for one out of 20 employed individuals in
1994, the share was one in 42 in 1999.
Table 3.6.1 contains additional information based on the most recent data source. In 1999
there were 1 million 635 thousand economically active children between the ages 6 and 17,
amounting to 10.2 percent of those in this broader age group. Three main patterns emerge:
the likelihood of engaging in economic activity increases with age; it is higher in rural areas;
and higher for males. While children in the 6-11 age group accounted for 6.2 percent of the
all working children, the shares of those in the 12-14 and 15-17 age groups were respectively
25 and 68.8 percent of the total. The dominance of small family farming is responsible for
the considerably higher use of child labour there. Consistent with aggregate employment
patterns, gender distinctions appear to be less important in rural areas. Compared to females,
males are a lot more likely to work in urban areas.
Table 3.6.1. Enrolment and work status of 6-17 year-old children (HLFS99-Oct)
Location,
sex and
age group
All
6-11
12-14
15-17
Male
6-11
12-14
15-17
Female
6-11
12-14
15-17
Number
(1000)
16,088
8,131
3,934
4,023
8,202
4,155
2,000
2,048
7,886
3,976
1,935
1,974
All Turkey
In school
(%)
78.8
91.7
80.6
51.0
82.7
92.9
86.6
58.2
74.8
90.5
74.4
43.6
Working
(%)
10.1
1.2
10.4
28.0
12.3
1.1
12.6
34.8
7.9
1.4
8.1
20.9
Number
(1000)
9,576
4,852
2,271
2,453
4,926
2,480
1,169
1,276
4,650
2,372
1,101
1,177
Urban
In school
(%)
82.0
91.7
84.9
60.0
84.9
93.0
89.8
64.5
79.0
90.4
79.8
55.2
Working
(%)
6.2
0.3
5.6
18.5
9.4
0.5
8.5
27.7
2.8
0.2
2.4
8.3
Number
(1000)
6,512
3,279
1,664
1,570
3,276
1,674
830
772
3,236
1,604
834
798
Rural
In school
(%)
74.2
91.8
74.6
36.9
79.4
92.8
82.2
47.8
68.8
90.7
67.3
26.4
Working
(%)
24.6
4.0
25.9
66.3
26.5
3.1
28.8
74.7
22.7
4.9
23.0
58.2
Source: SIS report on Working Children (“Çalışan Çocuklar”) Tables 8, 12 and Figures 26-28;
http://www/die.gov.tr/cin/CIN-TR/cocuk99.pdf.
The three age sub-groups shown in Table 3.6.1 roughly correspond to the age ranges for
lower-primary, upper-primary, and secondary education. It is disturbing to see that close to
10 percent of the children in the 6-11 age group are not in school. The significant drop in the
enrolment rates for the 12-14 age group is attributable to the fact that the data were collected
38
The children were first asked if they engaged in economic activities which resulted in
income (cash or in kind) or if they supplied unpaid family labour, for at least one hour during
the previous week. Economic activities included gathering of uncultivated agricultural
products and other useful items such as firewood and grass for animals, picking fruits and
vegetables from own garden, raising chicken and collecting their eggs, fetching water,
milking animals, fishing, hunting, drying fruit and vegetables, and so on. Those who said
“yes” were classified as engaging in economic activities. The children were also asked if
they engaged in house chores for at least one hour during the previous week. House chores
included doing the laundry, taking care of siblings or the sick in the household, cooking,
cleaning, ironing, shopping, fixing household items, and so on. Those who said “yes” were
classified as engaging in home-work. Note that it is possible for a child who engages in an
economic activity to also participate in home-work. However, the 1994 survey did not elicit
information on incidence of home-work from economically active children. The figures
reported are from the SIS report on Working Children “Çalışan Çocuklar” available on line:
http://www/die.gov.tr/cin/CIN-TR/cocuk99.pdf.
26
one year after legislation that made 8 years of primary education compulsory became
effective. In urban areas children who are not in school, and who are not working, form a
sizable segment. A large fraction of the male children in the 12-14 and 15-17 age groups are
able to combine work commitments with school in rural areas.39
In 1999 a majority (58.8 percent) of the children who did market oriented work were engaged
as unpaid family workers. Regular wage and salary workers constituted 23.7 percent of the
total while casual wage and salary workers accounted for 15.7 percent. In urban areas these
fractions were respectively 58.9 and 27.2 percent. In rural areas 83.8 percent of the working
children had the status of unpaid family workers.
According to HLFS-99Oct., nationwide average for weekly hours of work for children in the
6-17 age group was 37.4 hours. The average work week is quite a bit longer in urban areas
(51 hours) compared to rural areas (30.5 hours). While only about 16 percent of the children
in urban areas work less than 40 hours per week, in rural areas this fraction is more than 64
percent.
Table 3.6.2. Sector of work for 12-17 year-old working children in urban areas
Agriculture
Manufacturing
Food, beverage, tobacco
Textiles, wearing apparel, leather goods
Furniture manufacturing
Other manufacturing
Construction
Wholesale and retail
Auto repair
Retail sales
Repair of home appliances/personal items
Other
Hotels and restaurants
Restaurants, bars, coffee houses etc.
Social, personal services
Barber shops, coiffures
Total
All working children
Male
Female
11.5
50
Wage earners
Male
Female
3.9
26
3.5
11.1
6.8
11.6
4
4.5
23.2
*
4.1
*
3.7
14
8.8
14.8
4.8
5.9
35.3
*
7.8
*
11.9
15.3
3.2
3.1
*
6.1
*
2.9
14.9
10.3
3.1
3
*
6.4
*
4.4
8.4
*
8.5
*
4.5
94.9
4.2
95
6.1
95.9
6.9
92.7
Source: Dayıoğlu and Assaad (2002), Table 2.
*
Cells with very small fractions.
Examination of the economic activities that children engage in reveals that agriculture by far
is the most important sector. According to HLFS-99Oct., 57.6 percent of the children in the
6-17 age group worked in agriculture, 21.8 percent in industry, 10.2 percent in trade, and 10.4
39
According to raw data from HLFS-94Oct, in addition to 761 children who were engaged in
market work during the reference week, 68 children were seeking work. Among those who
were not engaged in market-work, 243 children (2.35 percent of the full sample) had previous
work experience. A very large majority of these children (76 percent) were residents of rural
areas and had the status of unpaid family labour in agriculture. These findings suggest that
the labour force participation rate for 6-14 year old children during summer months might be
2-3 times higher than the October figures reported above.
27
percent in services. Interestingly, the bulk of the reduction in the incidence of child labour
between 1994 and 1999 is attributable to a decline in the absolute numbers engaged in
agriculture. In urban areas there is ample evidence that children are channelled to gendered
work careers. Children who make monetary contributions to the household budget are
concentrated in households with the lowest income levels and account for a substantial share
of household income (Tunalı, 1996; Taştı, 2001).
According to micro data from the 1994 HIDS reported in Table 3.6.2, (12-17 year old)
children are concentrated in a handful of sectors.40 Only male children are employed in
furniture manufacturing, construction, auto repair, restaurants, bars and coffeehouses.
Textiles, wearing apparel and leather goods emerges as the only sector in which female
children have significant representation.
3.7
“Hidden” employment
Although establishments might have the incentive to hide the true size of their workforce,
individual workers do not have any reason to misrepresent their employment status. Thus
technically speaking, information obtained from household surveys should provide an
accurate employment picture for the resident population. Following this logic, “hidden”
employment can be taken to be synonymous with employment of illegal immigrants.
Defined as such it is not possible to provide a sound estimate of “hidden” employment.41
The term “hidden” employment is also used to refer to workers who do not benefit from the
protection stipulated in labour law. As such, “hidden” employment can be taken to be
synonymous with employment in the informal sector. Although one does not need to look
hard to come into contact with the reality of the informal sector, quantifying its size is a
difficult task. Estimates typically rely on information on employment status and/or social
security coverage found in household surveys. Bulutay (1995: 200) focused on nonagricultural activities and included self-employed persons, unpaid family workers and
employers with less than four workers in his definition of the informal sector. Based on
HLFS-92April, he reported a figure of 16 percent for Turkey, and 26 percent for urban areas.
Another popular definition takes the share of wage and salary workers who do not have social
security coverage (often termed “unrecorded employment” [“kayıt dışı istihdam”]) as a
measure of the informal sector. This figure has varied between 25 and 35 percent depending
on the data source.42 Questions about the location of the workplace that have been added to
the HLFS after 1995 have helped to provide better estimates. Using these Bulutay (2000:
XLIII) arrived at estimates in the 20-22 percent range. Using the broadest definition
(employees working in non-fixed places and in fixed work places with three or fewer
workers) adopted by Bulutay and Taştı (2002), the share of the informal sector in nonagricultural employment approached 40 percent during the mid to late 1990s.
Throughout 2000, the SIS fielded a special survey aimed at studying the informal sector of
the economy in urban areas of Turkey. According to the preliminary estimates, 1.34 million
individuals work in the urban informal sector. Using the HLFS 2000 estimates of the size of
40
Note that the HIDS was not designed for labour market analysis.
The document prepared after the First General Board Meeting of İŞKUR provides an
estimate of about 1 million (İŞKUR, 2001, paragraph 21). However no explanation of the
methodology used in arriving at this figure is given.
42
Tunalı and Ercan (1998: 98) gave the figure 30 percent based on HLFS 1988-October.
This figure reached 57 percent in firms with less than ten workers. Tansel (2000) found the
uncovered share of the paid work force to be 25 percent in the two rounds of HLFS 1989, and
35 percent in the 1994 Household Expenditure Survey.
41
28
the labour force, 13.4 percent of the male workforce, and 7.9 percent of the female workforce
outside agriculture belong to the urban informal economy.43 One reason this estimate is
lower than those offered by Bulutay (2000) is the complete exclusion of domestic workers
from the new survey’s coverage frame. According to raw data from H2LFS-88Oct., domestic
workers accounted for 2.9 percent of the urban female workforce. According to HLFS94Oct., the fraction was 4.5 percent.44 Casual workers (who work irregularly for day wages)
account for 42 percent of the urban female domestic workforce in HLFS-88Oct, and 69
percent in HLFS-94Oct.
Economists have also used terms such as unrecorded or “hidden” economy to refer to
activities which might not get reflected in national statistics. Kasnakoğlu and Yayla (1998)
estimate the size of the unrecorded economy in Turkey using three different methods offered
in the literature. Even though they yield different size estimates, all three methods suggest
that the share of the unrecorded economy has increased after the mid to late 80s. Under the
assumption that currency is the only medium of exchange used in unreported transactions, the
size of the unrecorded economy is estimated to amount to 30 percent of the official GNP in
1997.45
Among the factors that have been implicated as contributing to the size and scope of the
informal economy, are the fast pace of urbanization, high transaction costs in the recorded
segment of the economy, and forces that limit women’s access to formal sector jobs.46
3.8
Vacancies and Structural Imbalances
Statistics on vacancies are collected by İŞKUR, the Employment Agency (described in
section 7.1). The data reported in Table 3.8.1 come from İŞKUR. This agency is responsible
for processing applications for job openings in the public sector. Starting with 2000,
applicants have had to take a written exam, called the Permanent Worker Exam. This exam
was given in October 2000 for the first (and last) time, which resulted in a boost in
applications between June 2000 and 2001. According to İŞKUR directorate, the large (42%)
increase in the stock of the unemployed followed by the small (–4.5%) decline are
attributable to the timing of the exam. As such it is an imperfect labour market indicator.47
Nonetheless the fact that 480,000 people took the exam attests to the continuing appeal of
public sector jobs, and the bleak employment prospects that existed even before the economic
crisis erupted.
43
See Bulletin no. B.02.1.DIE.0.11.04/906-168, dated 31/10/2001.
Own calculations based on micro data. Three digit occupation codes 54x were taken to
correspond to domestic work. There were 26 observations in HLFS-88Oct and 80 in HLFS94Oct.
45
The ‘transactions method’ yields the highest estimates (in the 30-60 percent range) and the
‘demand for money’ method yields the lowest (in the 9-13 percent range).
46
See Özar (2000), Şenyapılı (2000), and Tunalı (2000).
47
See Taştı (1997) for a comparison of the unemployment registration data of İŞKUR with
the conventional unemployment figures reported by the SIS.
44
29
Table 3.8.1. Job applications, vacancies, placements -- June 2000-2002
Monthly applications
Stock of available jobs
Referrals to employer
Placements
Stock of unemployed
June levels
2001
23,783
18,507
21,928
17,239
694,719
2000
36,489
36,204
26,752
34,104
488,294
Year-to-year change (%)
2000-2001
2001-2002
–34.8
–18.1
–48.8
–41.1
–18.0
–41.8
–49.4
–43.1
+42.2
–4.48
2002
19,471
10,894
12,773
9,802
663,615
Source: Monthly Statistic Bulletin of İŞKUR; http://www.iskur.gov.tr/mydocu/haziran2002.htm
The data in the first four rows of Table 3.8.1 probably are better indicators of labour market
conditions. The secular decline in monthly applications is attributable to the increased sense
of discouragement caused by the ongoing economic crisis. The remaining three rows capture
the tightening of labour market conditions from the demand side. It is difficult to go beyond
these qualitative assessments.
Data on the contractual labour force collected by the Ministry of Labour and Social Security
(described in section 3.3 above), allow us to glean additional insights about cyclical patterns
and labour market dynamics. In Figure 3.8.1 time series data on the stock, as well the
absolute and relative magnitudes of the flows into and out of the contractual labour force are
graphed. Net employment losses are observed in 1994 (the year of a major economic crisis)
and 1999 (the year of the Marmara earthquake), but not in 2001, suggesting that the
contractual labour force did not feel the full impact of the crisis until later. Outflow and
inflow data underscore the significance of turnover. In 1998, the year when turnover was
smallest, 18 percent of the workforce was replaced. Two years later turnover was at is
highest, and 35 percent of the workforce was replaced.
Figure 3.8.1. Contractual worker stock and turnover, 1993-2001
5,000,000
45.0%
4,500,000
40.0%
4,000,000
35.0%
3,500,000
30.0%
3,000,000
25.0%
2,500,000
20.0%
2,000,000
15.0%
1,500,000
10.0%
1,000,000
5.0%
500,000
0.0%
0
-5.0%
1993
1994
1995
1996
1997
1998
1999
2000
Year
Source: Ministry of Labour and Social Security (2001), pp.136-7, and 172.
2001
stock
inflow
outflow
% gain
% inflow
% outflow
30
4.
Labour Force Participation
4.1
Demographic Trends
Population growth:
According to the General Census, Turkey’s population stood at 67,803,927 in 2000 and is
estimated to have reached 70 million in 2002. Roughly two thirds of the population (65
percent in 2000) lived in urban locations with 20,000 or more inhabitants. Between 1990 and
2000 the population grew at an average annual rate of 1.83 percent, falling below 2 percent
for the first time since 1945. The growth rate was 2.68 percent in urban areas and only 0.42
percent in rural areas.48 The large difference between the two is attributable to rural-to-urban
migration.
The figures from the 2000 Census confirm the conclusions drawn in a seminal study
conducted in 1995, that Turkey had entered a period characterized by a definite and
irreversible decline in the rate of population growth.49 Based on the assumption that
replacement levels of fertility will be reached around 2005-2010, that study predicted that the
population would stabilize somewhere between 95 and 98 million by the middle of the 21st
century. Although recent evidence points to a slowdown in the rate of decline of fertility,
revised projections await further work on the new census data.
Fertility:
The Total Fertility Rate (TFR, for ages 15-49), the number of children women would have by
the time they complete their fertile period, stood at about 5.5 in 1970. It was cut by more
than one-half by the end of the century. TFR in 1998 stood at 2.6, slightly below its level in
1993.50 Despite the dramatic reductions in fertility recorded in the 80s and early 90s, the fact
that individuals in their reproductive ages accounted for a large fraction of the population
dampened the slowdown of the population growth rate. The annualized population growth
rate was recorded at 2.49 percent between 1980-85 and 2.17 percent between 1985-90, before
reaching 1.83 percent in the last decade of the century.51
Age composition of the population:
When fertility rates come down fast, age composition of the population undergoes dramatic
changes. Examination of the likely evolution of the age structure of the population in 1990
and beyond reveals a dramatic rise (from 44 to 52 percent by 2010) in the share of individuals
between the ages of 20 and 54. The equally dramatic fall (from 35 to 26 percent) in the share
of the youth (0-14), combined with the increasing (from 4 to 6 percent) but still small share of
the elderly (65 and over), point at a favourable dependency profile.
This presents opportunities, as well as challenges to the government. If employment
opportunities are forthcoming, a larger fraction of the population will be gainfully employed.
The tax base will most likely expand, and as a consequence public savings will increase.
Private savings might also increase. Even if the share of spending on education were to stay
constant as a proportion of the GDP, a deepening of educational resources will take place. As
48
This and other information from the 2000 General Census reported below were obtained
from the web page of SIS, http://www.die.gov.tr/nufus_sayimi/2000Nufus_Kesin.htm.
49
SIS, (1995: 5). See also Shorter (1995).
50
The figures are from the Demographic Health Surveys conducted in Turkey in 1993 and
1998, and are reported in HIPS (1999).
51
Based on census data.
31
a result, average quality of schooling is likely to improve. If adults have jobs, children will
stay in school longer, and can look forward to better labour market opportunities.52 As
employment expands the social security system will prosper, ensuring the elderly to generous
retirement and health benefits. On the other hand, if demand falls short of the potential
supply of able bodied individuals, unprecedented levels of unemployment, poverty, and
social unrest might lie ahead.
4.2
Labour Force Participation of the Population
Trends in participation:
Although the gradient has flattened considerably, the labour force participation rates (LFPRs)
in Turkey are still on the declining trend that began in the 1950s.53 There is strong evidence
that the decline in labour force participation has gone hand in hand with rural-urban
migration induced urbanization. To a large extent this pattern has to do with the different
conditions that households face in the respective locations. Simply put, in rural areas it is a
lot easier for able bodied men and women to satisfy the criteria used for identifying
participants: Firstly because of the dominant role of agriculture, and secondly because of the
overlap in the work and home environments of agricultural households. Consequently all
members participate in household based production activities. Households which migrate to
urban areas have difficulty maintaining the continuity between the domains of market and
non-market production, and members specialize further in one or the other of these activities.
The form that this specialization takes is dictated by traditional forces, which charge men
with the responsibility of bringing home the bread, and women with the task of maintaining
the home and child rearing. Increased educational opportunities allow children to stay in
school longer, and result in reduced teen participation rates. Finally, skill requirements of
jobs in urban areas induce selective participation.
Recent trends can be seen in Figure 4.2.1.54 Three patterns emerge from this figure: (i) Rural
LFPRs are higher than urban LFPRs; (ii) male LFPRs are higher than female LFPRs; and
(iii) the male-female differential is higher in urban areas than in rural areas. These are
consistent with the explanations given in the opening paragraph. During the period under
examination, the female labour force participation rate (for those 15 years or over) fluctuated
between 16 and 18 percent in urban areas. A declining trend is evident in the other series.
52
The links between early withdrawal of children from school and economic hardships faced
by the household are established in Tunalı (1996).
53
The longest available series is published in Bulutay (1995). For detailed discussion on
participation patterns, see Dayıoğlu (2000), Kasnakoğlu and Dayıoğlu (1996), Tansel (1994,
1996), Tunalı (1997).
54
The drop in the LFPR observed in rural areas after 1999 is attributable to the changed
sampling frame of the new HLFS. The sharp drop in the rural LFPR for females in 1993 is
more difficult to explain. It does not show up in the published HLFS volumes prior to 2000.
These rely on inflation factors derived from the population projections based on the 1990
census. The HLFS data base on the web page of the SIS (the main source used in this report)
contains the updated estimates, obtained by applying the inflation factors derived from the
Population Count in 1997.
32
Figure 4.2.1. Labour force participation rates (age 15 and above) broken down by sex
and location, 1988-2001
Age 15 and above, 1988-2001
90.0%
80.0%
70.0%
LFPR
60.0%
Urban-M
50.0%
Urban-F
40.0%
Rural-M
Rural-F
30.0%
20.0%
10.0%
20
01
20
00
19
99
19
98
19
97
19
96
19
95
19
94
19
93
19
92
19
91
19
90
19
89
19
88
0.0%
Year
Source: HLFS 1988-2001.
Participation trends by age:
Figures A4.2.1-A4.2.4 in Annex 1 show age-specific LFPRs for the period 1989-99, plotted
separately by sex, and location. Circles mark the observations available in the biannual
HLFS. The patterns are similar to those observed for employment ratios (see section 3.1).
Gender differences are considerable (except for the youngest age groups) and are amplified in
the urban areas. As children stay in school longer, LFPRs of 12-14, and 15-19 year olds have
fallen over time, especially for the youngest in rural areas. The combined effect of increased
enrolment rates in higher education and high unemployment rates for males under 25 (subject
of section 5.3), are manifested in the form of a declining trend in the LFPR of young males in
urban areas. The decline in the LFPRs of prime age (25-54) males in urban areas is more
difficult to explain. LFPRs of older females (60 or over), and males (65 or over) rose in rural
areas, possibly because of improved health.
Age profiles:
When correlates are examined, well-known patterns are encountered. The patterns by
education are the subject of section 3.4. The age profiles based on combined data from 2000
and 2001 are shown in Figure 4.2.2. The profiles for women and men are dramatically
different. In urban areas female participation rates appear to peak early (approaching 26
percent in the 20-24 age group), but as we see below the picture changes when we control for
marital status. In rural areas the female participation rate varies little over the life cycle and
does not begin to drop until after age 54. Male participation rates peak during the mid to late
30s in urban areas, and even later in rural areas. This pattern is attributable to the fact that
military service intervenes during the 20s. In urban areas male participation rates drop
precipitously after age 44. This pattern is attributable to the low legal retirement age which
remained in force until 2002.
33
Figure 4.2.2. Age-specific LFPRs broken down by sex and location, 2000-2001
2000-2001 averages
100.0%
90.0%
80.0%
LFPR
70.0%
Urban-M
60.0%
Urban-F
50.0%
Rural-M
40.0%
Rural-F
30.0%
20.0%
10.0%
0.0%
9
-1
15
4
-2
20
9
-2
25
4
-3
30
9
-3
35
4
-4
40
9
-4
45
4
-5
50
9
-5
55
4
-6
60
+
65
Age group
Source: HLFS 1988-2001.
Marital status:
In Figure 4.2.3 we re-examine the age profiles for residents of urban areas, to capture the
interaction between marital status and participation. The bottom panels keep track of changes
in marital status as a function of age (in the 2000-2001 cross-sections). Note that compared
to men, women enter marriage at a faster rate, and have a considerably higher risk of being
widowed. Divorce is uncommon. Closer inspection of the data reveals that the share of
divorced women in higher than the share of divorced men in every age group. On average
women are twice as likely to be divorced as men.
The participation restraining effect of marriage for females is striking. On average single
women are twice as likely to participate as married women. In each age group, the
participation rate for single women exceeds that for married women. As a function of age the
gap initially increases, then decreases. Both profiles are roughly concave. The peak rate for
single women (59.2 percent in the 30-34 age group) is more than three times that for married
women (18.2 percent in the 35-39 age group). Marriage is likely to have two reinforcing
effects: First, the presence of a breadwinning husband might reduce a married woman’s
attachment to the labour market. Second, if children are present, child care might become a
priority and further reduce the likelihood of participation. Since market-based child care
services are utilized by only a handful of families, and not all families live in extended
households where help from older adult females might be available, presence of young
children in the household is likely to emerge as a major factor limiting participation.55
Divorced women have the highest average participation rate.56 The highest participation rate
(63.5 percent) is observed for divorced women in the 35-39 age group. During the
productive portion of the life cycle (25-60), the participation rates of widowed women are
55
Evidence from micro data (HLFS 1988 and 1998) confirms this conjecture. See Tunalı
(1997) and Tunalı and Başlevent (2003).
56
To a large extent this is an education effect. Compared to those who have basic education
or less, middle and high school graduates are two times more likely to be divorced, while
university educated women are three times more likely to be divorced. See *Öztürk (2002b).
34
bracketed by those of married and single women (respectively from below and above). Note
that the peak rate observed for the age group 15-19 is attributable to a small cell count.
Turning to males residing in urban areas, note that married men dominate the subpopulation
of males above 30. Thus the age-specific aggregate male LFPR essentially equals the LFPR
for married males. The data for single males above 40, widowed males under 60, and for
divorced males are too sparse to draw strong conclusions. Nonetheless it is worth pointing
out that men who remain single too long, and men who lose their partners, are less likely to
participate than married men.
Favourable trends:
The fact that a significant fraction of women stay out of the labour force during their
productive years, is of concern. There are many reasons for thinking that this situation is not
likely to last much longer. As we discuss in the next subsection, the female LFPR rises
sharply with education, and educational attainment is improving. Consequently an increasing
fraction of the women in the young cohorts are expected to enter the labour market, and
remain attached after getting married. The reduction in fertility and increased use of labour
saving home appliances should reinforce this orientation. Finally, the increase in the
minimum legal age for retirement (see section 2.3) is likely to prolong attachment (for males,
as well as females).
Unfavourable conditions:
Why female LFPRs in urban areas have remained flat despite the favourable trends
mentioned above is a puzzle. As we discuss below (in section 5.3), urban unemployment
rates were considerably higher for women than men in the late 80s. The gap did not close
until the end of the 90s. This may have discouraged female participation. On a more
fundamental level, the volatility in real income experienced by many households during the
90s is likely to have dampened the demand for many services which employ women. The
data on hours examined in section 4.5 below suggests that the labour market in Turkey does
not offer the flexible working arrangements that have been credited for the dramatic rise in
the fraction of females in the workforces of the OECD countries. Finally, the research on the
links between legislation and female employment outcomes conducted under the auspices of
the General Directorate of the Status and Problems of Women has identified what might be
termed unfavourable, possibly discriminatory legislation.
35
Figure 4.2.3. Age group specific LFPRs by marital status (top) and share in age group by marital status (bottom),
females (left) and males (right) residing in urban locations, 2000-2001
Urban females (2000-2001 average)
Urban males (2000-2001 average)
70.0%
100.0%
90.0%
60.0%
80.0%
Single
Married
40.0%
Divorced
30.0%
Widowed
LFPR
Total
20.0%
Single
60.0%
Married
50.0%
Divorced
40.0%
Widowed
30.0%
Total
20.0%
10.0%
10.0%
Urban females (2000-2001 average)
+
65
-6
4
-5
4
-5
9
60
55
-4
9
50
-4
4
Urban males (2000-2001 average)
100.0%
100.0%
90.0%
90.0%
80.0%
80.0%
70.0%
70.0%
Single
Married
50.0%
Divorced
40.0%
Widowed
65
+
60
-6
4
55
-5
9
50
-5
4
45
-4
9
40
-4
4
0.0%
35
-3
9
10.0%
0.0%
30
-3
4
20.0%
10.0%
25
-2
9
20.0%
20
-2
4
Divorced
40.0%
30.0%
Source: HLFS 2000 and 2001.
Married
50.0%
30.0%
Age group
Single
60.0%
Share
60.0%
15
-1
9
45
-3
9
Age group
Age group
Share
40
-2
9
-3
4
35
30
25
-1
9
15
65
+
60
-6
4
55
-5
9
50
-5
4
45
-4
9
40
-4
4
35
-3
9
30
-3
4
25
-2
9
20
-2
4
-2
4
0.0%
0.0%
15
-1
9
70.0%
20
LFPR
50.0%
Widowed
4
9
-2
-1
15
20
4
9
-3
-2
25
30
9
4
9
-4
-4
-3
35
45
40
Age group
9
4
-5
-5
50
55
4
-6
60
+
65
36
4.3
Labour Force Participation by Educational Attainment57
Education system:
The three-tier education system in Turkey has been undergoing changes. Until the passage of
Law no. 4306 in 1997, the primary level consisted of 5 years of elementary school. Starting
with the 1998-99 school year, compulsory education was extended to 8 years of basic
education by combining elementary school with what used to be termed junior high school.
As part of 1997 reform, junior vocational high schools ceased to exist. The secondary level
consists of a minimum of 3 years of general or vocational high school, plus one or two years
of language preparation in schools where the medium of instruction is a foreign language.
Law no. 4702 enacted in 2001 provides the framework for extending basic education to 12
years. Since the 8+4 year structure called for major curriculum reforms, its implementation
has been delayed. The tertiary system includes 2-year higher education programs oriented
towards vocational education and 4-year programs that provide university degrees. Many
universities have both types of programs and also grant graduate degrees.
Free basic and high school education (funded by the State) is available for everyone. The
higher education system on the other hand, does not have the capacity to meet the demand.
New universities founded throughout the 80s and 90s helped expand the capacity and
geographical reach of the State system. Much of the increase in capacity came through the
expansion of the so-called Open Education [Açık Öğretim] system which offers 4-year degree
granting distance learning programs that rely on lectures broadcast on national TV, and 2year vocational and professional schools [Ön Lisans and Meslek Yüksek Okulları]. Student
placement is implemented centrally, by a public agency. In 2002, about 1.5 million students
took the Central Entrance Exam (CEE). Of the total 548 thousand (36.5 percent) were high
school seniors; the remainder were repeat-takers (63.5 percent). About 175 thousand students
(11.5 percent of those who took the CEE) were placed in 4-year programs, 193 thousand in 2year programs (some of which allow top performers to transfer to 4-year programs), and 341
thousand in Open Education programs.58 Tuition charging private universities, most of which
were founded in the 90s, accounted for 6 percent of all placements in 2 and 4 year programs.
As of 2002 there were 53 State and 19 private universities.
Educational attainment:
To capture the educational profile and the recent trends, we rely on HLFS data for the late
80s (1988-89-90) and late 90s (1998-99-2000). We computed 3-year averages to reduce
measurement error due to sampling variation. We examined the entire economically active
population (age 15 and over), as well as its subdivisions: males, females, the employed, the
unemployed, and the non-participants. The breakdown of the population and its subdivisions
by educational attainment as of the late 80s and late 90s is shown in Figure 4.3.1. The two
snapshots taken 10 years apart capture the improvements in education graphically.
57
This section draws from *Akçiğit and Tunalı (2002) and *Öztürk (2002a).
To put things in perspective, in 1996 there were approximately 470 high school seniors
among the 1.3 million or so who took the CEE. The share of repeat exam takers was around
64 percent. Around 395 thousand students were placed; 150 thousand into 4-year programs,
75 thousand into 2-year programs, and 170 thousand into Open Education programs.
Information about the CEE may be found on the web site of the Student Selection and
Placement Center [Öğrenci Seçme ve Yerleştirme Merkezi - ÖSYM]:
http://www.osym.gov.tr/
58
37
Figure 4.3.1. Education and labour market status, late 80s vs. late 90s
Shares of Educational Levels
100%
90%
80%
70%
60%
50%
40%
30%
20%
Illiterate
Non-participants 90s
Non-participants 80s
Unemployed 90s
Unemployed 80s
Employed 90s
Employed 80s
Female 90s
Female 80s
Male 90s
Male 80s
Population 90s
0%
Population 80s
10%
Vocational junior high school
Literate without any diploma
High school
Primary school
Junior high school
Universities and other higher educational institutions
Source: HLFS 1988-1990, 1998-2000, as reported in *Akçiğit and Tunalı (2002), Figure 1.
Taking the non-institutional civilian population, 15 years or over, as our base, in the late 80s
illiterate individuals accounted for 22.2 percent of the total, and 16.1 percent of those residing
in urban areas. Ten years later the figures were 15 and 9.7 percent. As the 20th century came
to an end, one out of 4.6 females, and one out of 17.7 males were illiterate. Ten years earlier
the ratios were one in 3, and one in 9.6. The data attest to progress in the struggle with
illiteracy, but slower progress in the case of females. In the late 80s males on average had 5.7
years of education, while females had 3.9. In the late 90s, the averages were respectively 6.8
and 5.3.59
Figure 4.3.1 hints at the presence of positive correlation between participation and
educational attainment. In ten years the share in the labour force of those with basic (5 years
of elementary school) education remained stable. While the share of those with less than
basic education shrunk, the share of those with more education expanded. Compared to the
employed, the unemployed have a higher share of university, high school, and middle school
graduates. As we show in section 5.3 below, this has to do with the fact that the youth face a
significantly higher risk of unemployment.
59
To arrive at the measure of average schooling, we assumed that literates without a diploma
had two years of schooling, and all those included in the higher education category had 4
years of additional education. The details may be found in *Akçiğit and Tunalı (2002).
38
Differences across cohorts:
In Figure 4.3.2 we show the distribution of the average years of schooling by age group
broken down by sex, for the late 80s and the late 90s. Three patterns are worthy of comment.
(i) Younger cohorts have consistently done better than older ones; (ii) Females have
registered bigger gains at all age groups; (iii) The gender gap is smaller for younger cohorts.
The gender gap is highest for people in their 50s (more than 2 years) and is less than one year
among the youngest.
Figure 4.3.2. Average years of schooling by age group and sex, late 80s vs. late 90s
Average years of schooling
9
8
7
6
AYS
5
4
3
2
1
0
15-19
20-24
88-89-90 male
25-29
30-34
98-99-00 male
35-39
40-44
88-89-90 female
45-49
50-54
98-99-00 female
55-59
60-64
65+
Age group
Source: HLFS 1988-1990, 1998-2000, as reported in *Akçiğit and Tunalı (2002), Figure 4.
Education and participation:
In Figures 4.3.3 and 4.3.4 the relationship between education and the LFPR is examined,
respectively for females and males, using data from HLFSs. The line depicts the aggregate
LFPR. Females with basic education or less have the lowest LFPR. Completion of a higher
level of schooling boosts the female LFPR by a larger and larger margin. Up until 2000,
university educated women were participating nearly as vigorously as males. Although
higher educational attainment brings about higher likelihood of participation, a decreasing
trend for participation among the better educated women is evident. Between the late 80s and
late 90s, the LFPR of university and high school educated women fell by 10 or more
percentage points.
39
Figure 4.3.3. Participation by education, urban females 1988-2001
Figure 1: Education and Participation - Female-1988/2001
90
80
70
60
50
40
30
20
10
0
1988
1989
1990
1991
primary school or lower
1992
1993
1994
junior high or equ.
1995
1996
1997
1998
high school or equ.
1999
2000
university
2001
UFLFP
Source: HLFS 1988-2001 as reported in *Öztürk (2002a), Figure 1.
Figure 4.3.4. Participation by education, urban males 1988-2001
Figure 2: Education and Participation - Male-1988-2001
100
90
80
70
60
50
40
30
20
10
0
1988
1989
1990
primary school or lower
1991
1992
1993
junior high or equ.
1994
1995
1996
high school or equ.
1997
1998
1999
2000
university
Source: HLFS 1988-2001 as reported in *Öztürk (2002a), Figure 2.
The finding that climbing the educational ladder increases the LFPR of women remains
robust when age and other covariates are included.60 The participation inducing effect of
education is stronger for women who are in their early productive years (ages 20-44). In the
case of women in their middle productive years (ages 45-54), only attainment of a university
degree makes a big difference. This suggests that university educated women not only have
much stronger ties to the labour force when young, but also in their middle ages.61
Male participation rates display a V-pattern as a function of education. University educated
males have the highest LFPRs. The lowest LFPRs are observed for middle school graduates.
If this is a reflection of the demand for the marginal skills acquired in middle school, the
recent extension of basic education from 5 to 8 years might not be adequate investment for
the needs of the labour market. Also of concern is the fact that males with five years of
primary school education or less have higher participation rates than high school graduates.
60
See Kasnakoğlu and Dayıoğlu (1996), Tansel (1994, 1996), and Tunalı (1997).
See Tunalı (1997). These findings are based on a single cross section (1994 HLFSOctober). Cohort effects -- which could be attributed to the evolution of norms and attitudes,
technological change, and perhaps improvements in the quality of schooling – are likely to
influence the manner in which education impacts participation during the early and middle
phases of the life cycle.
61
2001
UMLFP
40
4.4
Labour Force Participation by Region
As we pointed out in section 3.4, regional data which are comparable over time are presently
unavailable. The regional contours of participation in 2000-2001 can be established using the
new HLFS.62 Since the patterns of variation are the same as those reviewed in sections 3.4
and 3.5, we refrain from further discussion.
4.5
Supply of Hours63
The HLFS instrument includes two separate questions on weekly hours of work: Actual
hours of worked during the reference week, and usual (or normal) hours of work, the amount
of time an individual typically spends at work on a weekly basis. In the HLFS data base
accessible from the web page of the SIS, the information on hours comes from actual hours
worked during the reference week, and not the usual hours of work. Furthermore the data are
grouped, and reported for the following subdivisions: 1-16, 17-35, 36-39, 40, 41-49, 50-59,
60-71, 72+. Fraction of individuals who had a job, but did not work during the reference
week is also reported.64 Given the dominant role of agriculture and the forms of utilization of
labour in rural areas, the situation there is not of much interest for our purposes. In what
follows we focus on workers aged 15 or above, residing in urban areas.
Actual hours of work:
Assuming that workers are uniformly distributed within the hours of work categories, it is
possible to calculate average hours of work from grouped data.65 Under that assumption, we
find that the average weekly hours of work has shown some variation over time around an
increasing trend for both male and female workers. Overall average weekly hours of work
has gone up from 48.8 in 1988 to 52.1 hours in 2001. The corresponding figures are 50.1 to
53.7 hours for males and 41.2 to 44.7 hours for female workers.
Since a cut-off at neither 45, nor 48 is possible given the nature of the data, we chose to
aggregate the data further, and examined the division of workers into the categories of 1-39,
40, and 41+ hours per week. With the statutory work week set at 45 hours for the majority
and 40 hours for a sizable minority, it makes sense to treat actual hours below 40 as part-time
work (rather than 30 or 35 as in OECD countries). Surprisingly the patterns for males and
females turn out to be practically the same. Two main points emerge from the aggregate
picture in Figure 4.5.1. First, the increase in the average is attributable to the rising share of
workers who have a work-week of more than 40 hours. Second, the shares of those who
work 1-39 and 40 hours fluctuate over the years. In the graph we also keep track of the
shares of those who work (i) 36-39 hours among <40, and (ii) 41-49 hours among 40+. Line
(ii) allows us to detect a trend for even longer hours among those who work more than 40
hours. Line (i) establishes the fact that a very large majority of part-time workers work 35
hours or less. It also isolates 1994, the year of a major economic crisis, as an aberration: Not
only did the share of those who worked <40 hours decreased, the share of those who worked
35 hours or less among these also got smaller.
62
Figures 2b-2c, 3b-3c in *Başlevent (2002) capture the dramatic differences in regional
variation that emerge when gender and location are accounted for.
63
This section is based on *Başlevent and Tunalı (2002).
64
Between 1988-1999, this fraction varied between a low of 0.3 percent (1998) and a high of
1.8 percent (1989). It was 1.9 percent in 2000, and 2.5 percent in 2001.
65
We excluded workers who had a job but did not work during the reference week from the
analysis and assumed that average hours of work in the 72+ category was 80.
41
Figure 4.5.1: Distribution of weekly hours of work in urban areas, 1988-2001
All
0.8
0.6
0.4
0.2
0
1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001
<40
40
41+
36-39 among <40
41-49 among 41+
Source: HLFS 1988-2001 as reported in *Başlevent and Tunalı (2002), Figure 1a.
Actual hours of work per week vary considerably when broken down by worker status. In
Figure 4.5.2 the averages calculated for each subgroup (regular wage and salary worker,
casual wage and salary worker, employer, self-employed, and unpaid family worker) have
been plotted over time. The increasing trend is visible in all the categories except for casual
wage and salary workers. Casual workers, who do not have employment protection, had
longer hours than regular wage and salary workers throughout the period under examination.
Figure 4.5.2. Weekly hours of work by employment status in urban areas, 1988-2001
65
60
55
50
45
40
1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001
Regular W&S
Casual W&S
Employer
Self-employed
Unpaid f. w.
Source: HLFS 1988-2001 as reported in *Başlevent and Tunalı (2002), Figure 2.
In Figure 4.5.3 we graph the distribution of weekly hours of work by employment status in
2001. When defined by a work-week of less than 40 hours, part-time work is most commonly
observed among unpaid family workers. These are almost entirely female workers. The selfemployed and casual wage and salary workers also contain large fractions of part-time
workers. In 2001 the share of part-time workers was around 8.5 percent overall,
approximately 18 percent among women, and 6 percent among men. The share of part-time
workers among regular wage and salary workers was only 5.3 percent overall, 9.3 percent for
females and 4.2 for males. Whichever way the data are cut, the share of part-time workers is
very low compared to OECD countries. Yet examination of the data on hours by marital
status reveals that the share of married women decreases sharply as the length of the work
week increases. These observations lend credence to the premise that the labour market does
have the flexibility to accommodate married women’s needs.
42
Figure 4.5.3: Distribution of weekly hours of work by employment status in 2001
2001
1
0.8
0.6
0.4
0.2
0
<40
40
Regular W&S
Casual W&S
Employer
Self-employed
Unpaid family
worker
All
41+
Source: HLFS 2001 as reported in *Başlevent and Tunalı (2002), Figure 3.
Examination of the changes between 1990 and 2000 by sector and by occupational group
reveals that the work week has gotten longer for everyone except those engaged in
agriculture, who account for less than five percent of the urban workforce. As shown in
Figure 4.5.4, between 1988 and 2001 weekly hours in manufacturing increased by more than
five for males, and more than six for females. It is tempting to connect Turkey’s problem
with employment generation with the upward trend in actual hours. The private sector has
long been on record implicating high payroll taxes and severance pay as impediments to
hiring. The literature on informality has identified the transaction costs of setting up and
running a business as hurdles that stand in the way of expansion of the formal sector. It
appears that concerns about regulation in general, and labour market regulation in particular,
need to be addressed in devising employment policy.
Figure 4.5.4: Weekly hours in manufacturing in urban areas, 1988-2001
55
50
45
40
35
1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001
All
Male
Female
Source: HLFS 1988-2001 as reported in *Başlevent and Tunalı (2002), Figure 8.
Usual hours of work:
Data on actual hours pertain to a specific week. If work has a seasonal component, or if
economic shocks do not impact everyone at the same time, this might not the best way to
capture what goes on in the domain of work. The alternative would be to use the data on
normal, or usual hours of work. Measurement errors will be present, but there is no reason to
expect systematic biases. In Table 4.5.1 we report average actual and usual hours of work
per week on the main job from select rounds of the HLFS for comparison.66 We see that
usual hours of work are higher than actual hours across the board. The differences are larger
66
Less than 2 percent of those employed report holding a second job.
43
for females, and are especially large in rural areas. The pattern of increased hours over time
is still present in urban areas.
Table 4.5.1. Comparison of actual and usual hours of work per week, on main job
Urban
Rural
Male
Female
Male
Female
Actual
Usual
Actual
Usual
Actual
Usual
Actual
Usual
1988
49.53
50.95
39.92
41.57
45.80
51.85
38.83
45.99
1994
51.14
52.40
41.05
42.61
45.48
50.17
38.23
44.86
1998
52.05
53.09
43.47
44.87
46.31
52.04
37.09
44.26
Source: Own calculation based on raw data from October rounds of the HLFS.
4.6
Geographic Mobility
Broadly speaking, the east-to-west, and rural-to-urban migration flows which first emerged in
the 50s are still in effect. Between 1985 and 1990 net outflows were recorded from the North
(Black Sea, 19.9 out-migrants per 1000), East and Southeast (17), and Central (5.8) regions.
Net inflows were recorded into the West (Marmara and Aegean combined, 18.2 in-migrants
per 1000), and the South (8.5). Peak rates were observed between ages 15-19 for males, 2024 for females).67 Education selectivity of migration flows is well-established. Updates to
1990-2000 await release of detailed results from the 2000 Census.
The differences between the countrywide averages (of the population growth rate) and the
individual figures for regions and provinces suggest that the general contours of the internal
migration process have not been altered. İstanbul boasted a growth rate of 3.31 percent, and
was home to 15 percent of Turkey’s population in 2000. Two provinces registered even
faster growth, Antalya in the southwest at 4.18 percent, and Şanlıurfa in the southeast at 3.66
percent. While 66 provinces registered increases, 15 had declines in population. With one
exception, the provinces that registered declines are in the Black Sea, South Eastern and
Eastern regions. Marmara region grew fastest (at 2.67 percent) and the Black Sea region
slowest (at 0.36 percent).
External mobility:
Information on external mobility is extremely limited (mainly because there is no system of
data collection). Although Turkey saw an influx of refugees from northern Iraq at the time of
the 1991 Gulf War (put at 500,000 in newspaper articles), it is difficult to establish whether
the flow was transitional, and how it may have impacted regional balances. News of illegal
immigrants caught in Turkey, and competition from undocumented workers in day jobs, have
frequently appeared in newspapers in recent years. One thing is clear: Legal emigration
from Turkey is down to a trickle compared to the flows in the 60s. According to İŞKUR, less
than 10,000 workers went abroad in 2001, and about 15,000 halfway through 2002. Largest
flows recorded in 2002 were to Saudi Arabia, Russian Federation, and Germany.
67
SIS (1995), Tables 5-4 and 5-5.
44
5.
Unemployment
5.1
Unemployment Data
In what follows we rely on grouped and raw data from the Household Labour Force Surveys
(HLFS). The grouped data are available on the web site of the SIS. We mostly focus on
urban areas where the problems are most severe. The reference population is the noninstitutional civilian population, ages 15 and over. To get classified as unemployed, an
individual has to satisfy three criteria: (i) did not work during the reference week; (ii)
searched actively for a job during the past six (1988-99) or three (2000-2002) months; and
(iii) is ready to start work in 15 days. According to this definition those who have found a
job and are about to start working are classified as unemployed. The reference week was a
fixed week in April or October in the biannual surveys (1988-99). The quarterly surveys
conducted since 2000 rely on continuous sampling, whereby the reference week evolves with
the timing of the survey.
5.2
General Trends in Total Unemployment
As pointed out in Chapter 2, during the past decade or so the Turkish economy suffered from
several major shocks. The first came in 1994, after the Turkish lira lost 70 percent of its
value against the US dollar in three months, due to mounting concerns about the
government’s handling of public sector barrowing. Inflation and interest rates skyrocketed,
and the economy shrunk by 6.5 percent. In the early part of 1999, the lagged impact of the
Russian crisis was felt in Turkey. In the second half of the year, two earthquakes devastated
the Eastern part of the Marmara region which accounted for 5 percent of the establishments,
more than 6 percent of the workforce, and about 15 percent of the value added in Turkish
manufacturing in 1997. Finally, 2001 went into the record books as the year of the severest
economic crisis in Turkey since the 1950s, as the GNP plummeted by more than 10 percent.
volatility in the environment resulted in substantial fluctuations in the standard of living.
Figure 5.2.1. Unemployment rate, 1988-2002
0.12
0.11
0.10
0.09
0.08
0.07
0.06
2002 - Period 4
2002 - Period 3
2002 - Period 2
2002 - Period 1
2001 - Period 4
2001 - Period 3
2001 - Period 2
2001 - Period 1
2000 - Period 4
2000 - Period 3
2000 - Period 2
1999 - Oct
Source: HLFS 1988-2002, as reported in *Akçiğit (2002), Figure 2.
2000 - Period 1
1998 - Oct
1999 - April
1997 - Oct
1998 - April
1996 - Oct
1997 - April
1995 - Oct
1996 - April
1994 - Oct
1995 - April
1993 - Oct
1994 - April
1992 - Oct
1993 - April
1991 - Oct
1992 - April
1990 - Oct
1991 - April
1989 - Oct
1990 - April
1988 - Oct
1989 - April
0.05
45
In Figure 5.2.1 the series on the unemployment rate is shown for the period 1988-2002:3.
The failure of the biannual HLFS (1988-1999) to match inferences based on other business
cycle measures (such as that captured in Figure 2.1.1) and especially its inability to reflect the
perceived effects of the 1994 crisis, have been invoked in raising questions about the manner
in which the unemployment rate is measured by the SIS. The sample frame of the new HLFS
was designed in response to these concerns. The revised survey has been used starting with
2000. The quarterly data published by the SIS appear to reflect the impact of the financial
shock in the first quarter of 2001 and the depth of the ensuing recession.
The nationwide unemployment rate reached 11.5 percent in the first quarter of 2002 and
stood at 11.0 percent in the fourth quarter. According to the bulletins published on the web
site of the SIS, compared to the same quarter of the previous year, the number of unemployed
individuals rose by 653 thousand in the first quarter of 2002, by 650 thousand in the second,
466 thousand in the third, and by 301 thousand in the fourth. The total number of
unemployed individuals, which was estimated to be around 1.5 million in 2000 and 1.9
million in 2001, exceeded 2.8 million in the first quarter of 2003.
Apart from its depth, another aspect that distinguishes the most recent crisis from the
previous ones is its breadth. With the exception of those oriented for exports, firms in every
sector of the economy, regardless of size, have been affected. The banking sector, which was
implicated as the trigger mechanism of the crisis, was especially hard hit. Reorganization of
the banks in the public sector resulted in a personnel reduction from 61,601 in December
2000 to 38,303 in May 2002. The workforce of the 500 largest firms was cut back 5.7
percent (from 558,288 to 526,314) in 2001. Public sector firms took the lead with a 7.1
percent reduction overall.68
Trends by gender and location:
Between 1988 and 2000, the annual unemployment rate in urban areas of Turkey remained
fairly stable for males and has been on a declining trend for females (see Figure 5.2.2).
However, the recent economic crisis has reversed these trends. Out of a labour force of
nearly 11 million in 2001, the number of unemployed in urban areas reached over 1.4 million,
around one million of whom were males. The urban unemployment rate in 2001 was
recorded as 16.8 percent for females, 10.3 for males, and 11.5 overall, an increase of nearly 3
percentage points from the previous year in each case. As mentioned in section 4.2 above,
substantially higher rates observed for females may have been a factor in keeping urban
female labour force participation rates low.
Figure 5.2.2. Urban unemployment rate, aggregate and by gender, 1988-2001
Urban
0.3
0.2
0.1
0
1988
1989
1990
1991 1992
1993
All
1994
Males
1995
1996
1997
1998 1999
Females
Source: HLFS 1988-2001, as reported in *Başlevent and Tunalı (2002), Figure 1a.
68
Radikal (daily newspaper), 25 July 2002.
2000
2001
46
The trends in the rural areas (locations with a population of 20,000 or less) are shown in
Figure 5.2.3. During the period under examination, unemployment rates have been
considerably lower in rural areas. Mainly as a result of migration to urban areas, the rural
labour force dropped from 11.4 million in 1990 to just under 10 million in 2000, and
continued to shrink in 2001. Over seventy percent of the rural workforce was employed in
agriculture in 2001. Due to weaker qualifications needed for employment, rural residents are
less likely to be unemployed. While women have traditionally been economically active in
family-owned farms, young men have sought work outside agriculture to supplement farming
income. Starting with 1999 the cuts in agricultural subsidies and competition from imports
appear to have put more pressure on men to seek for jobs.
Figure 5.2.3. Rural unemployment rate, aggregate and by gender, 1988-2001
Rural
0.1
0.05
0
1988
1989
1990
1991
1992
1993
All
1994
Males
1995
1996
1997
1998
1999
2000
2001
Females
Trends by reason for unemployment:
Unemployment can be voluntary or involuntary. Although distinctions are not clear cut,
useful inferences can be drawn using the information on the reason for unemployment
provided in the HLFS. Starting with 1991, the survey instrument allows us to construct the
following categorization:
123-
Lost job: (i) worked temporarily, (ii) was dismissed, (iii) business got liquidated or
went bankrupt.
Quit the job: (i) due to insufficient income, (ii) due to unsatisfying working
conditions, (iii) retired.
First time job seeker (or newcomer): (i) just graduated, (ii) just completed his
military service, and (iii) other.
In Figure 5.2.4 below, we keep track of the changes in the shares of categories 1, 2, and 3
over the period 1991-2001. We also show the shares of those who just graduated from
school, and those who completed their compulsory military service among the newcomers
(first time entrants in the labour market). The first panel is for all unemployed respondents
residing in urban areas. The data are broken down by sex in the subsequent panels. In the
aggregate picture 1997 and 1998 stand out as unusual years in the sense that the share of
those who lost their jobs was smallest. In 1999, the distribution appears to have reverted to
the pre-1997 pattern. After 1999 the share of those who lost their jobs kept increasing, and
approached 50 percent in 2001. That year nearly seven hundred thousand people lost their
jobs. The number in the previous year was four hundred thousand.
47
Figure 5.2.4. Reason for unemployment in urban areas, 1991-2001
All
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0
1991
1992
Lost
1993
Quit
1994
1995
Newcomer
1996
1997
1998
Just grad. among n-c
1999
2000
2001
Mili. serv. among n-c
Males
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0
1991
1992
Lost
1993
Quit
1994
1995
Newcomer
1996
1997
1998
1999
2000
2001
Mili. serv. among n-c
Females
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0
1991
1992
1993
Lost
1994
Quit
1995
1996
Newcomer
1997
1998
1999
2000
2001
Source: HLFS 1991-2001, as reported in *Başlevent and Tunalı (2002), Figures 6a-6c.
The two bottom panels point out to a fundamental difference between the unemployment
experiences of males and females. Among males, those who lost their jobs comprise the
largest group. Among females, newcomers constitute a clear majority up until 1999, and
hold the lead rest of the way. As primary breadwinners men are much more involved in the
labour market, and consequently have a smaller share of newcomers among the unemployed.
Among male newcomers, the shares of those who just graduated and those who completed
military service are about the same, and account for 60-70 percent of all newcomers. Among
female newcomers, the share of those who just graduated increased from 27 percent in 1988
to 45 percent in 1998.
Although the severity of the 2001 shock is clearly visible for both sexes, between 2000 and
2001 the share of those who lost their jobs registered a bigger increase for females. The drop
in the share of females who just graduated among newcomers in 2001 suggests that some
48
women who never worked before may have entered the labour force as “added workers” in
response to the crisis.
Duration of unemployment:
HLFSs provide limited information on unemployment spells. Information on the length of
the incomplete spell is collected from those who were unemployed at the time of the survey.
No information is collected from employed individuals some of whom may have recently
completed an unemployment spell. On the web page of the SIS, duration data are reported
for the following subdivisions (in months): 1-2, 3-5, 6-8, 9-11, 12-23, 24-35, and 36+. It is
possible to arrive at an average duration by making assumptions about the group averages.
To obtain the averages plotted in Figure 5.2.5, we relied on raw data from three rounds of the
HLFS and set the group means to 1.5, 4, 7, 10, 14, 25, and 52.69 Reported durations have
been on a declining trend since 1996. Females have consistently had longer unemployment
spells compared to males. It is tempting to attribute this to the fact that the share of
newcomers is considerably higher for females on the grounds that it takes longer to get the
first job.70
Figure 5.2.5. Average length of truncated unemployment spell in urban areas, 19882001
20
15
10
5
0
1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001
All
Males
Females
Source: HLFS 1988-2001, as reported in *Başlevent and Tunalı (2002), Figure 7.
The average truncated unemployed spell which was around 14 months (13 for males, 17 for
females) in 1996 was down to 7.3 months (6.8 for males, 8.7 for females) in 2001. If how
long a spell extends beyond the current length is not affected by time already spent in the
unemployed state, and if spell information came from a random subset of individuals who
experience unemployment, then averages for the completed spells would be twice as much.
Recall that the only information we have on the unemployment experiences of individuals
comes from those who are unemployed at the time the labour survey is conducted. Since
individuals who have longer unemployment spells are more likely to be unemployed at a
given point in time, we obtain a more pessimistic picture of time spent in the unemployed
state. Put differently, because we do not know how long it took recently employed people to
find jobs, the numbers reported above are likely to be biased upward.
69
We used the October rounds of the 1988, 1994, and 1998 HLFS. Tabulations may be
found in the appendix of *Başlevent and Tunalı (2002).
70
In the raw data there is mixed support for the premise that newcomers have to search
longer. See *Başlevent and Tunalı (2002), appendix.
49
In Figure 5.2.6 we examine the distribution of the duration of unemployment for job seekers
in the urban areas. We combine adjacent categories and examine the shares in <6, 6-11, and
12+ months. We also keep track of the share of those who have been unemployed for (i) 3-5
mos. among the <6 group, and (ii) 9-11 mos. among the 6-11 group. We find that until 1997
long term unemployment (12+ mos.) was dominant. Starting with 1998, short term
unemployment (<6 mos.) began to dominate. The share of the short term employed was 40
percent in 1998. It increased by about 10 percentage points between 1998 and 1999, and by
more than 10 percentage points between 1999 and 2000. In 2001 approximately two-thirds
of the unemployed were classified as short term, and 20 percent as long term unemployed.
When the data are broken down by sex (not shown), we see that a considerably larger share
of unemployed males were in the short term unemployed category compared to females.
Figure 5.2.6. Distribution of the duration of unemployment in urban areas, 1988-2001
All
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0
1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001
<6
6-11
12+
3-5 among < 6
9-11 among 6-11
5.3
Unemployment by Age Groups
The evolution of unemployment rates in urban areas over the period 1988-2001, broken down
by age groups, is shown in Figure 5.3.1. We focus on five age groups: 15-19 and 20-24
(entry into the labour market), 25-34 (early career), 35-54 (mid career), and 55+ (late
career).71 Risk of unemployment is highest for new entrants. While the unemployment rate
in 2001 hovered around 22 percent in the 15-19 and 20-24 age brackets, it was below 10
percent for the remaining age groups. The decline in the youth unemployment rates over
time is attributable to increases in high school and university enrolment. As of the end of the
time period under examination, individuals in their late careers have the lowest
unemployment rate, just above 5 percent.
71
Figures A5.3.1-A5.3.4 in Annex 1 show age-specific unemployment rates for 5-year age
groups over the period 1989-99, plotted separately by sex, and location. Circles mark the
observations available in the biannual HLFS. Since unemployment is a relatively rare
outcome, small sample sizes introduce extraneous fluctuations in some of the series. We
work with five age groups because sharper conclusions can be drawn after aggregation.
50
Figure 5.3.1. Urban unemployment rate by age group, 1988-2001
0.3
0.25
15-19
0.2
20-24
0.15
25-34
0.1
35-54
55+
0.05
0
1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001
Figure 5.3.2 shows how the age composition evolved over time. The most dramatic changes
are the reduction in the share of the 15-19 group and the increase in the share of the 35-54
group. As seen in Figure 5.3.1, all except people in their late careers were affected by the
2001 crisis. Those in mid career (ages 35-54) were hit worse than others as attested by the
sharp increase in their share among the unemployed. As implied by the shape of the age
profile of participation (see Figure 4.2.2) individuals in their late careers are a select group.
Their share among the urban unemployed is a tiny fraction.
Figure 5.3.2. Composition of urban unemployment by age group, 1988-2001
0.35
0.3
15-19
0.25
20-24
0.2
25-34
0.15
35-54
0.1
55+
0.05
0
1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001
In 2000, just over three-quarters of the unemployed were under the age of 35. During the
decade under examination, both the labour force and the unemployed got older. These have
to do with changes in the age composition of the population (see section 4.1) and extended
schooling (see section 4.3). Gender breakdown (not shown) does not alter the big picture
except that larger shares of men are in the “older” age groups, and the decrease in the
unemployment rate with age is much more visible among women. Both patterns have to do
with the fact that men leave the labour force later than women.
5.4
Unemployment by Educational Attainment
Unemployment rates vary dramatically across groups with different levels of education. We
focus on urban areas and investigate the patterns in 1990, 2000, and 2001 separately for
males and females in Figures 5.4.1 and 5.4.2. The comparison of 1990 and 2000 provides
some sense of the trends that existed before the crisis hit in 2001. In the figures we show the
51
unemployment rate (connected circles), as well as the composition of the unemployed (darker
bars) broken down by the level of education. For comparison we also include the share of the
labour force with a given level of education (lighter bars) and plot the average unemployment
rate (horizontal line).
Figure 5.4.1. Male unemployment by level of education in 1990, 2000, and 2001
1990 Urban - Males
0.6
0.5
0.4
0.3
0.2
0.1
0
Illiterate
Literate
Share in unemp.
Elem.
Jun. high
Share in labor force
Voc. j. h.
High sch.
Unemp. rate
Voc. high
University
Ave. unemp. rate
2000 Urban - Males
0.6
0.5
0.4
0.3
0.2
0.1
0
Illiterate
Literate
Share in unemp.
Elem.
Jun. high
Voc. j. h.
High sch.
Unemp. rate
Voc. high
University
Ave. unemp. rate
2001 Urban - Males
0.6
0.5
0.4
0.3
0.2
0.1
0
Illiterate
Literate
Share in unemp.
Elem.
Jun. high
Voc. j. h.
High sch.
Unemp. rate
Voc. high
University
Ave. unemp. rate
Source: HLFS 1990, 2000 and 2001, as reported in *Başlevent and Tunalı (2002), Figure 2b.
On the whole unemployment risk (group’s share among the unemployed) appears to be
distributed in proportion to the group’s share in the labour force. The pattern is different for
females who have high school education or above. While female (regular and vocational)
high school graduates are exposed to higher risk of unemployment (relative to their share in
the labour force), female university graduates confront a lower risk.
52
Figure 5.4.2. Female unemployment by level of education in 1990, 2000, and 2001
1990 Urban - Females
0.6
0.5
0.4
0.3
0.2
0.1
0
Illiterate
Literate
Share in unemp.
Elem.
Jun. high
Voc. j. h.
High sch.
Unemp. rate
Voc. high
University
Ave. unemp. rate
0.6
0.5
0.4
0.3
0.2
0.1
0
Illiterate
Literate
Share in unemp.
Elem.
Jun. high
Voc. j. h.
High sch.
Unemp. rate
Voc. high
University
Ave. unemp. rate
0.6
0.5
0.4
0.3
0.2
0.1
0
Illiterate
Literate
Share in unemp.
Elem.
Jun. high
Voc. j. h.
High sch.
Unemp. rate
Voc. high
University
Ave. unemp. rate
Source: HLFS 1990, 2000 and 2001, as reported in *Başlevent and Tunalı (2002), Figure 2c.
In 2000 elementary school graduates made up nearly half of the unemployed male sample (as
well as the male labour force), but their share has been on the decline during the past decade.
In the case of females, high school graduates and elementary school graduates each
accounted for about 30 percent of the unemployed in 2000.
In the case of males, unemployment rates vary a lot less by education. Differences that were
evident in 1990 were practically gone in 2000. The crisis in 2001 appears to have hit
illiterate males and literate males who do not have an elementary school diploma more
severely (however the share of this group in the labour force is very small). In the case of
females, an inverse-U pattern that is clearly visible in 2000 became more pronounced as a
result of the crisis. Higher than average unemployment rates observed for junior high and
high school graduates may have been responsible for historically low female continuation
rates after elementary school.
53
5.5.
Unemployment by Region
Unemployment rates in 2000 and 2001 broken down by region and location are compared in
Figures 5.5.1 (males) and 5.5.2 (females). The horizontal lines capture the countrywide
averages in 2000 (solid line) and 2001 (dashed line). Male urban unemployment rates are
near or above the national average in the more developed regions (Marmara, Aegean and
Mediterranean) which attract the majority of the migrants, and in the Southeast, the poorest
region in the country. The recession affected males in the urban areas of all the regions, but
had a smaller impact in the Black Sea. In the rural areas the impact was confined to the
Mediterranean, Central, Eastern and Southeastern regions. The Eastern region was hit worst,
the Mediterranean second worst. In the Eastern region, the male unemployment rate went up
by 3.5 percentage points in urban areas and registered a three-fold increase (6.2 percentage
points) in rural areas. In the Mediterranean region the rates were augmented by 2.9 and 3.2
percentage points respectively.
Figure 5.5.1. Male unemployment rate by region in 2000 and 2001
Unemployment rate, Males - Urban
14
12
10
8
6
4
2
0
Marmara
Aegean
Urban - 2000
Mediter.
Central
Urban - 2001
Black Sea
Urban TR - 2000
Eastern
Southeast
Urban TR - 2001
Unemployment rate, Males - Rural
12
10
8
6
4
2
0
Marmara
Aegean
Rural - 2000
Mediter.
Central
Rural - 2001
Black Sea
Rural TR - 2000
Eastern
Southeast
Rural TR - 2001
Source: HLFS 2000 and 2001, as reported in *Başlevent (2002), Figures 5a-b.
In 2000 the regional contours of male unemployment rates in rural areas were similar to those
in urban areas. While male residents of rural Marmara, Aegean, and Mediterranean regions
experienced above average unemployment rates, males residing in the Central, Black Sea and
Eastern regions were exposed to below average rates. In the Southeastern region, the rate
was near the countrywide average. The impact of the recession, however, was different.
Male rural unemployment rates shot up in the Mediterranean, Central, Eastern and
Southeastern regions, but declined elsewhere. In the Eastern region, the rural male
unemployment rate (9.3 percent) approached the urban rate (9.5 percent).
54
The regional contours of female urban unemployment rates follow the same broad pattern as
the male rates. Rates near or above the countrywide average are observed in the more
developed Marmara, Aegean and Mediterranean regions on the one hand, and the least
developed Southeast on the other. As a result of the recession, the unemployment rate more
than tripled in the Eastern region (from 4.4 to 14.1 percent), and increased by 4 or more
percentage points in the Marmara, Aegean, Central, and Southeastern regions. Surprisingly
the rates declined slightly in the Mediterranean and Black Sea regions.
Figure 5.5.2. Female unemployment rate by region in 2000 and 2001
Unemployment rate, Females - Urban
25
20
15
10
5
0
Marmara
Aegean
Mediter.
Urban - 2000
Central
Urban - 2001
Black Sea
Urban TR - 2000
Eastern
Southeast
Urban TR - 2001
Unemployment rate, Females - Rural
7
6
5
4
3
2
1
0
Marmara
Aegean
Mediter.
Rural - 2000
Central
Rural - 2001
Black Sea
Rural TR - 2000
Eastern
Southeast
Rural TR - 2001
Source: HLFS 2000 and 2001, as reported in *Başlevent (2002), Figures 6a-b.
The picture for females residing in rural areas mimicked the broadest pattern identified
above: namely, above average rates were observed in the Marmara, Aegean, and
Mediterranean regions in both years. In other ways the picture was quite different. The
impact of the recession is evident only in the Central and Eastern regions, both of which had
less than one percent unemployment in 2000. Rural female unemployment rates actually
dropped in Marmara and Mediterranean regions. The recession appears to have had an
equalizing effect on female rural unemployment rates.
5.6.
“Hidden” unemployment72
Before analyzing the patterns of “hidden” unemployment, conceptual problems have to be
addressed. As commonly defined, unemployment statistics include people who are not
employed, and have taken specific steps to obtain a job, and are ready to start working with
short notice. It is recognized that this definition falls short of capturing shortfalls or
72
This section is based on *Akçiğit (2002).
55
inadequacies in the use of labour as a productive resource. However, there is no commonly
accepted definition for underemployment.73 OECD defines underemployment inclusive of (i)
unemployed people, (ii) discouraged workers, and (iii) involuntary part-time workers. The
second group is made up of people who gave up search because they think jobs are not
available, but would be ready to take up work if available. The third group includes persons
who usually work full time but happen to be working part-time for economic reasons beyond
their control, and those working part-time due to inability to find a full-time job.
The SIS, the data collection agency in charge of collecting labour market statistics in Turkey,
uses a different definition. OECD’s definition excludes employed individuals who are
actively seeking another job because of insufficient income, or because of a poor match
between their occupational skills and what their jobs demands. The underemployment
definition of the SIS, on the other hand, includes these underutilized workers as well as parttime workers. However their definition excludes discouraged workers, who also are
underutilized. Thus the SIS defines underemployment inclusive of (i) involuntary part-time
workers, and employed job seekers who are looking for another job because their current job
(ii) provides insufficient income, or (iii) does not utilize their skills properly.
Arguably both definitions have their merits, and shortcomings. It is difficult to pick one over
the other. We therefore report two different aggregate underemployment rates (number of
underemployed people expressed as a percentage of the labour force) based on the biannual
(1991-1999) and quarterly (2000-2001) HLFS. Information on discouraged workers was not
available prior to 1991. We include October 1990 in the series anyway, to provide a basis for
comparison. Figure 5.6.1 shows the progression of the underemployment rate according to
the OECD definition.
It should be underscored that the OECD definition of
underemployment includes the unemployed while the SIS definition does not. We therefore
chose to plot the sum of unemployment and the SIS underemployment rates in Figure 5.6.2 to
render the two series more comparable.
Figure 5.6.1. Underemployment and its components according to the OECD definition
Unemployment and Underemployment (OECD) As a percentage of the labor force
14%
12%
10%
8%
6%
4%
2%
2002 - Period 1
2001 - Period 4
2001 - Period 3
2001 - Period 2
2001 - Period 1
2000 - Period 4
2000 - Period 3
Involuntary part-time workers
2000 - Period 2
1999 - Oct
1999 - April
1998 - Oct
1998 - April
1997 - Oct
1997 - April
1996 - Oct
1996 - April
1995 - Oct
1994 - Oct
1995 - April
1993 - Oct
1994 - April
1992 - Oct
1993 - April
Discouraged workers
2000 - Period 1
Unemployed
1992 - April
1991 - Oct
1991 - April
1990 - Oct
0%
See Kasnakoğlu (2002) for a conceptual analysis of the problem, novel proposals for better
measurement, and detailed examination of the evidence from Turkey.
73
56
Note that the difference between the underemployment rate as defined by the OECD, and the
unemployment rate is rather small – between 1 and 2 percentage points. Put differently, the
OECD definition calls for a small correction. By contrast, the underemployment rate as
defined by the SIS is roughly of the same magnitude as the unemployment rate. Thus the SIS
definition envisions a substantial adjustment. Neither series outperforms the other as
measured by the ability to track the business cycle. It appears the effects of the economic
shocks encountered during the 1990s were reflected in the statistics more in the form of
under- than un-employment. By contrast the impact of the 2000/1 crisis can be seen directly
in the unemployment statistics. It is worth noting that the share of discouraged workers was
not particularly high during deep crises (such as those in 1994 and 2000/1).
Figure 5.6.2. Unemployment plus underemployment according to the SIS definition
Unemployment and Underemployment (SIS) as a Percentage of the Labor Force
0.2
0.18
0.16
0.14
0.12
0.1
0.08
0.06
0.04
0.02
0
Unemployed
Underemployed
In Figure 5.6.3, the three components of the underemployment statistics collected by the SIS
are shown, as a fraction of the employed population. All three components appear to be
highly volatile. Individuals who are searching because they are dissatisfied with their
earnings on the current job constitute the largest component. Those who are searching
because of a skill mismatch constitute the smallest group. Notably, the share of the
dissatisfied reached its record level of 0.092 in October 1999 (compared to only 0.053 in
October 1998) and remained high during the first and second quarters of 2000. It is a well
established fact that the two major earthquakes in 1999 made it extremely difficult for firms
to conduct their businesses as usual. The data suggest that their workforce may have had to
share the costs of disruption in the form of lower earnings as well as layoffs.
Working less than 40 hours because of economic reasons
Seeking a job because of not w orking in his/her usual occupation
Seeking a job because of insuff icient income
2002 - Period 1
2001 - Period 4
2001 - Period 3
2001 - Period 2
2001 - Period 1
2000 - Period 4
2000 - Period 3
2000 - Period 2
2000 - Period 1
1999 - October
1999 - April
1998 - October
1998 - April
1997 - October
1997 - April
1996 - October
1996 - April
1995 - October
1995 - April
1994 - October
1994 - April
1993 - October
1993 - April
1992 - October
1992 - April
1991 - October
1991 - April
1990 - October
1990 - April
1989 - October
1989 - April
1988 - October
57
Figure 5.6.3. Components of underemployment according to the SIS definition
0,12
Underemployed people by reason/Employed people
0,1
0,08
0,06
0,04
0,02
0
58
6.
Vocational Education and Training systems74
6.1
General Status of the Vocational Education and Training System
The education system in Turkey and the trends in the educational attainment of the
population and the labour force were reviewed in section 4.3. Here we focus on the
vocational component, and begin by situating it within the broader system. The student flow
between the layers of the national education system has witnessed important developments in
the last decade. Until 1998, only 5 years of primary education was compulsory and a
significant proportion of those completing compulsory education would discontinue
schooling.75 Historically the drop-out rates have been higher for girls. These patterns are
responsible for the low level of educational attainment of the population and labour force in
general, and women’s even lower average education levels in particular.
Following the extension of basic education to 8 years in 1998, enrolment rates increased and
the gender gap decreased. In the 2000/01 academic year, gross enrolment rates reached 100
percent, and the number of students undergoing basic education exceeded 10 million. In
2001 students accounted for 21.5 percent of Turkey’s population. Most recent flow data are
tabulated in Table 6.1.1. An important point is that although the ratio of girls among those
who graduated in 2000 is 40.7 percent, the ratio has increased to 47 percent among new
enrolments. This development signals the mitigation of the societal obstacles detrimental to
the education of girls. However girls remain far from parity in secondary schools.
Table 6.1.1. New Enrolments and Graduates in Basic and Secondary Education
New Enrolments
(2000-2001 Academic Year)
Total
Boys
Girls
(share)
(share)
Basic Education (8 years)
1,316,194 697,930 618,264
(53.0%) (47.0%)
Secondary Education (Total)
757,593 448,251 309,342
(59.1%) (40.8%)
General Secondary Education
502,424 281,643 220,781
[share]
[66.3%] (56.1%) (43.9%)
Vocational and Technical
255,169 166,608
88,561
Secondary Education [share]
[33.7%] (65.3%) (34.7%)
Source: MoNE, National Education Quantitative Data (2001).
Education Type and Level
Graduates
(1999-2000 Academic Year)
Total
Boys
Girls
(share)
(share)
820,063 486,421 333,642
(59.3%) (40.7%)
498,241 280,278 217,963
(56.3%) (43.7%)
274,963 146,703 128,260
(53.4%) (46.6%)
223,278 133,575
89,703
(59.8%) (40.2%)
Students completing 8 years of basic education have three options for continuing their
education: general secondary education, vocational and technical education, and non-formal
education. The ratio of basic education graduates who proceed with secondary education
increased to over 90 percent in 2001. A key pattern in Table 6.1.1 for our immediate
purposes is that the share of students enrolled in vocational and technical secondary schools
is 34 percent of new enrolments in secondary education, and 45 percent of the graduates.
This radical switch to general education is a continuation of a trend that started in 1998, when
the Higher Education Council [Yüksek Öğretim Kurulu (YÖK)] passed regulations that
limited vocational high school graduates’ university entrance options.
Although development plans drafted in the 1970s and beyond placed the emphasis on
vocational training, and envisioned a share of 65 percent for the vocational and technical
component of the secondary school system, this target was not reached. The data compiled in
74
75
This section draws liberally from Akpınar and Ercan (2002).
See the flowchart in Akpınar and Ercan (2002), p. 236.
59
Table 6.1.2 trace out the recent patterns. The increase in the share of the vocational
component between 1991/2 and 1996/7 can be attributed to the expansion of one branch of
the system, the Secondary Islamic Education Schools [İmam Hatip Okulları]. In fact, the
move to extend basic education from 5 to 8 years was designed, in part, to curtail the demand
for religious education. At their peak (during 1996/7), religious schools had an enrolment of
over 68 thousand, and accounted for 27.5 percent of the students enrolled in vocational and
technical schools. In 2000/1, the numbers were down to 18 thousand, around 7 percent of the
total.
Table 6.1.2. New Enrolments in Vocational and Technical Secondary Education
School Year
1991-1992
Total
581,946
General Secondary
Education
334,945
Vocational & Technical
Secondary Education
247,001
General
%
57.6
V&T
%
42.4
1996-1997
666,981
337,533
329,448
50.6
49.4
1997-1998
760,314
442,078
318,236
58.1
41.9
1998-1999
675,652
366,104
309,548
54.2
45.8
1999-2000
706,036
428,361
277,675
60.7
39.3
2000-2001
757,593
502,424
255,169
66.3
33.7
Sources: Akpınar and Ercan (2002), Tables 3.6 and 3.7. Original data were obtained from MoNE:
National Education Quantitative Data (related years) and SIS: National Education Statistics – Formal
Education (related years).
Between 1996/7 and 2000/1, enrolments in vocational and technical schools decreased by
22.5 percent. The drop was considerably higher for girls (28.6 percent) than boys (18.9
percent).76 As of 2001, one out of three students enrolled in secondary schools was receiving
vocational education. At the prevailing social and economic conditions, it might be hard to
push this ratio higher. Although data from the late 80s and mid 90s indicate that returns to
vocational high school education have increased more than the returns to university education
(see section 2.2 above), 90 percent of all secondary school graduates take the university
placement exam. Regulations which have been enacted by the Higher Education Council in
1998 provide advantages to vocational and technical high school students who want to pursue
higher education in their fields of specialization, in schools that provide vocational education.
On the other hand, their entry to other fields in the university system has been made
increasingly more difficult.
Organization of vocational and technical education and training:77
The Ministry of National Education (MoNE) [Milli Eğitim Bakanlığı] has the responsibility
for long term planning, curriculum and program development, execution, monitoring and
supervision of all types and levels of education and training, apart from higher (i.e. postsecondary) education. The Higher Education Council (HEC) [YÖK], an autonomous body set
up by the 1982 Constitution, is responsible for organizing, orienting and accrediting higher
education. Post-secondary vocational schools and programs are established and operated by
universities or by private not-for-profit foundations, with the approval of the HEC. Other
ministries, organizations and institutions may establish formal and non-formal vocational
education and training (VE&T) programs at the secondary level to meet their own skilled
labour force needs. The most widespread among these are the health vocational high schools
connected to the Ministry of Health [Sağlık Bakanlığı]. Others include agriculture vocational
76
77
Akpınar and Ercan, 2002, section 3.3.1.
For a more detailed exposition, see Akpınar and Ercan (2002), section 3.3.7.
60
high schools connected to the Ministry of Agriculture and Rural Affairs [Tarım ve Köy İşleri
Bakanlığı], finance high schools connected to the Ministry of Finance [Maliye Bakanlığı],
deed and land survey high schools, and meteorology vocational high schools connected to the
State Ministries [Devlet Bakanlıkları] (which are ministries without portfolios). The
programs and regulations of these institutions are prepared in coordination with the MoNE.
The MoNE establishes the certification standards and the equivalence of the degrees granted.
Four General Directorates (GDs) established under the MoNE are in charge of formal
vocational and technical education activities: The GD for Technical Education of Boys, the
GD for Technical Education of Girls, the GD for Commerce and Tourism Education, and the
GD for Religion Education. Two smaller GDs have more specialized duties: the GD for
Special Education, Guidance and Counselling Services (responsible for children with
physical and mental disabilities), and the GD for Private Education (responsible for all
private schools which provide services in areas related to the Ministry’s activities).
Although the general directorates mentioned above are also responsible for the execution of
non-formal education services in schools and institutions under their administration, the bulk
of such training activities are coordinated by the GD of Apprenticeship and Non-formal
Education.
At the local level, there is a Provincial National Education Directorate [İl Milli Eğitim
Müdürlüğü] connected to the Governor of every province, and a District [İlçe] National
Education Directorate connected to the sub-governor [Kaymakam] of every district. These
organizations are responsible for the planning, execution and supervision of every type and
level of education and training activity within their geographical boundaries apart from
higher education. The organizational structure of the local directorates mimics that of the
central MoNe organization.
The MoNE solicits the input of broader segments of the society through two special councils.
The National Education Council [Milli Eğitim Şurası] is the highest advisory council of the
Ministry, offering views on all educational matters. The Vocational Education and Training
Council [Meslek Eğitimi Kurulu] has similar responsibilities for VE&T. Although the
National Education Council’s decisions are advisory, they are usually implemented by the
MoNE. The VE&T Council’s decisions used to be advisory, but since 2001, they have to be
acted on by the Ministry.
The VE&T system in Turkey is remarkable in terms of breadth and regional reach. Although
its organizational structure can be traced to the early periods of the Republic, the postsecondary component has been developed in response to recent needs. Unlike some of its
counterparts in the EU, the system does not guarantee public or private sector employment
for vocational school graduates. Existence of skilled personnel shortages on the one hand,
and high unemployment rates for vocational school graduates on the other, suggest that
enrolment quotas are not based on careful and timely manpower planning.
Funding of education:78
Practically speaking, all public spending on education is met from the General Budget.79 The
three main recipients are the MoNE, the HEC, and the Loans and Dormitories Organization
78
For additional information, see Akpınar and Ercan (2002), section 3.3.9.
In the 1980s new laws and government decrees were enacted to establish extra-budgetary
funds for the purposes of providing additional resources for education. In 2000 these funds
amounted to around 20 percent of the total MoNE budget. These funds have recently been
79
61
for Higher Education [Kredi ve Yurtlar Kurumu (YURTKUR)]. The share of education in
the consolidated budget is given in Table 6.1.3 for the ten year period 1992-2001. The share
of education in the consolidated budget was near 20 percent in 1992, and dropped to
approximately 10 percent in 2000. In 2001, there was a slight increase. Nonetheless the
trend is clearly downward, suggesting a shift in the priorities of the government to the
detriment of education.
Table 6.1.3. Share of spending on education in the Consolidated Budget,
and share of Consolidated Budget in GNP, 1992-2001 (percentage)
Year MoNE YÖK YURTKUR TOTAL
1992 14.56 4.37
0.51
19.44
1993 14.35 4.15
0.62
19.13
1994 11.36 3.77
0.48
15.62
1995 10.17 3.44
0.43
14.05
1996 7.21
2.58
0.41
10.21
1997 8.05
3.18
0.48
11.71
1998 8.40
2.85
0.40
11.66
1999 7.85
2.44
0.47
10.71
2000 7.13
2.22
0.42
9.78
2001 8.37
2.82
0.49
11.69
Source: MoNE, National Education in 2001.
Share of Consolidated Budget in GNP
18.90
20.06
21.26
17.08
23.82
21.64
27.90
34.44
37.58
31.52
As seen in the last column of the table, during this period there was an upward trend in the
share of the consolidated budget in the GNP. Table 6.1.4 shows the share of resources for
education as a fraction of the GNP for the same ten year period. There was a sharp drop after
the 1994 crisis. But the share increased in 1998, and returned to the 1992 level by 1999.
Thus, viewed as a share of the GNP, spending on education has been stationary. Turning to
the individual components, we see that in 2001 the share of MoNE was 2.64 percent, slightly
lower than its share in 1992. The share of YÖK was 0.88 percent, slightly above its share in
1992 (0.84 percent), while the share of YURTKUR was 0.16 percent, considerably higher
than its share back in 1992 (0.10 percent).
Table 6.1.4. Share of spending on education
in GNP, 1992-2001 (percentage)
Year MoNE YÖK YURTKUR TOTAL
1992 2.75
0.83
0.10
3.67
1993 2.88
0.83
0.12
3.84
1994 2.41
0.80
0.10
3.32
1995 1.73
0.59
0.07
2.40
1996 1.71
0.61
0.10
2.43
1997 1.74
0.69
0.10
2.54
1998 2.34
0.80
0.11
3.25
1999 2.70
0.84
0.14
3.69
2000 2.70
0.84
0.16
3.68
2001 2.64
0.88
0.16
3.68
Source: MoNE, National Education in 2001.
absorbed into the general budget as part of the ongoing effort towards stricter budgetary
discipline and transparency.
62
In Table 6.1.5, public expenditures on education and the number of students in the school
year 1998-1999 are given, broken down by the level of education. In terms of student
numbers, the main burden on the system comes from basic education. For every student in
the tertiary tier (higher education), there are two in the secondary, and about 10 in the
primary tier (basic education). Expenditure per student has the reverse ordering. The
average cost of a student in the higher education component of the system was US$1,649, 2.4
times more than a student in the secondary tier, and 4.2 times more than a student in the
primary tier.
Table 6.1.5. Public spending on education in the school year 1998-1999, by level
Education Level
Public Spending
(billion TL)
Number of
Students
Basic Education
1,570,424
9,540,006
164.6
392
568,131
1,954,430
290.7
692
Secondary Education
Cost per Student
million TL US$
Higher Education*
663,400
972,180
682.3
1,649
Source: Ministry of Finance, MoNE 1999 Definite Account; MoNE: National Education Quantitative
Data, 1998-1999; ÖSYM: Higher Education Statistics, 1998-1999.
*Consolidated Budget Figures, excluding Open Education.
Funding of vocational education:
For the purposes of evaluating the emphasis placed on VE&T, it is useful to compare the
public expenditures on general secondary education, and formal and non-formal vocational
education. Ten year evolution of the shares of the three components in total resources
allocated to the secondary school system is shown in Table 6.1.6. Note the decline in the
shares of all three components in the total MoNE budget starting with 1998, the year basic
education was extended from 5 to 8 years. This has to the with the fact that middle school
(grades 6-8) used to be part of the secondary school system prior to the reform.80 What
matters for our purposes is the ordering between the relative shares. The patterns are similar
whether we examine the relative shares in GNP, or in the MoNE budget. While general and
formal vocational education components are the same in terms of order of magnitude, nonformal education has less than one-fourth of the resources directed to formal VE&T.
In 1991 and 1992, the share of vocational and technical education was smaller than general
secondary education. Recall from Table 6.1.2 that the enrolment shares during the 19911992 school year was 57.6 vs. 42.2 percent, in favour of general education. Starting with
1993, and up until 2000, the resources allocated to VE&T exceeded those allocated to general
secondary education. Recall from Table 6.1.2 that the general and vocational components
had about the same number of students in 1996-1997, but vocational schools lost their appeal
following the reforms in 1998. Evidently as its student base was being depleted rapidly,
vocational system’s relative budget shares did not decline at the same rate.
80
As part of the basic education reform, the government enacted an incremental “sin” tax (on
the sale of tobacco, alcohol, lottery tickets, etc.) that will be in force until 2010. The
proceeds from this tax are collected in a special fund (called Contribution to Education Share
[Eğitime Katkı Payı]), and transferred to the MoNE budget to be spent solely on basic
education. This reduces the secondary education’s share. Starting in 2002, some of the
proceeds were to be spent for vocational education. Recent figures were not available at the
time of writing of this report.
63
Table 6.1.6. Resource allocation to General, and Vocational & Technical Education,
1991-2000 (share in GNP and MoNE Budget, percent)
General Secondary
Vocational & Technical
Education
Secondary Education
Year
Share in
Share in MoNE
Share in
Share in MoNE
GNP
Budget
GNP
Budget
1991
0.38
13.82
0.35
12.71
1992
0.43
13.76
0.41
13.10
1993
0.42
13.37
0.43
13.72
1994
0.32
13.68
0.33
14.46
1995
0.25
12.96
0.27
13.82
1996
0.28
13.48
0.31
14.87
1997
0.30
12.95
0.33
14.31
1998
0.31
11.54
0.35
12.79
1999
0.34
10.94
0.37
11.88
2000
0.32
11.38
0.32
11.61
Source: Ministry of Finance: MoNE, 1991-2000 Definite Accounts.
Apprenticeship and
Non-Formal Education
Share in
Share in MoNE
GNP
Budget
0.10
3.68
0.14
4.55
0.15
4.82
0.10
4.17
0.07
3.39
0.07
3.44
0.07
2.92
0.06
2.36
0.07
2.31
0.07
2.41
Budget shares of the key General Directorates (GD) that function under the MoNE are given
in Table 6.1.7. The sharp drops from 1997 to 1998 have to do with the above mentioned
reform of basic education. The GD branch least affected by the changes is the GD for
Commerce and Tourism Education. The most affected ones are the GDs for Religion
Education and Apprenticeship and Non-Formal Education.
Table 6.1.7. Resource allocation to key Vocational and Technical Education General
Directorates, 1995-2000 (share in the MoNE Budget, percent)
Year
Technical Technical Commerce Religion
Apprenticeship
Education Education & Tourism Education & Non-Formal
of Boys
of Girls
Education
Education
1995
5.80
2.55
2.02
3.45
3.39
1996
6.08
2.72
2.37
3.70
3.44
1997
5.71
2.51
2.35
3.73
2.92
1998
5.14
2.32
1.94
3.39
2.36
1999
4.91
2.15
1.90
2.93
2.31
2000
5.14
2.06
2.01
2.40
2.41
Source: Ministry of Finance: MoNE, 1995-2000 Definite Accounts.
TOTAL
first three
DGs
10.38
11.17
10.58
9.41
8.95
9.20
GENERAL
TOTAL
17.21
18.31
17.23
15.15
14.19
14.01
As shown in Table 6.1.5, average spending per student was US$ 692 during the school year
1998-1999. That year the expense incurred per student was US$ 591 in general secondary
education and US$ 824 in VE&T. That is, compared to a student enrolled in general
education, it cost 1.4 times as much to educate a student enrolled in VE&T. Back in 19911992 the figures were US$ 772 and US$ 955, respectively. The multiplier at the time was
1.2. Thus while expenditures per student decreased in US$ terms across the board, the
reduction was significantly less for students enrolled in VE&T programs. As we pointed out
in section 2.2, between 1988 and 1994 the returns to schooling increased by a larger margin
for vocational school graduates than for general high school graduates (see Table 2.2.1). We
do not know if these patterns remained valid beyond 1994. Assuming they did, one could
argue that the differences in cost per student are commensurate with the differences in the
private returns to education. On the other hand, the patterns of change in unemployment
rates reviewed in section 5.4 yield a different picture. In 1990, urban unemployment rates
were considerably higher for graduates of general high schools compared to vocational high
schools. By 2000, the rates were equalized. That is, high school graduates had the same risk
of being unemployed regardless of the differences in average cost of skill acquisition. The
point of this exercise is to underscore the importance of addressing the question of allocative
efficiency of investments in education.
64
Main regulatory/legal texts:81
The main law that regulates education is the National Education Basic Law (no. 1739) which
was enacted in 1973 and amended in 1983 and 1997. Other laws and government decrees
(which have the force of law) cannot have any provisions contrary to Law no. 1739, which
subsumes vocational and technical education under secondary education. Of the laws and
decrees that regulate vocational and technical education, three are worth mentioning. Formal,
apprenticeship and non-formal vocational and technical training are regulated under the
Apprenticeship and Vocational Education Law (no. 3308) enacted in 1986 and amended in
1997 and 2001.82 Issues related to the establishment, operation and supervision of private
vocational and technical education institutions are regulated by the Private Education Law
(no. 625) enacted in 1965. This Law was amended in 1983, 1984, 1985, 1986 and 1988. In
accordance with Unemployment Insurance Law (no. 4477), Regulation on Occupational
Development of Those Receiving Unemployment Benefits was issued on 23 December 2000.
This regulation is designed to ease job placement or self employment of those collecting UI
benefits by training them in vocations that are in demand.
The frequency with which concerns about VE&T have been addressed by legislation gives
the impression that governments have been quick to enlist to the cause. Closer examination
reveals that governments have been less than sincere in their implementation of the
legislation. A case in point is the mandatory extra-budgetary (Apprenticeship, Vocational
and Technical Education Development and Promotion) fund, which was established with
Law no. 3308 back in 1986. Its purpose was to promote vocational and technical education
through formal channels, as well as through apprenticeships and non-formal education, with
the ultimate objective of augmenting the number and quality of trained labour force.
Resource (tax) providers were business enterprises and professional organizations to which
trainees belonged. Its revenues in 1987 were fully spent for the intended purpose. Of the
amount actually spent on vocational education, about 40-45 percent went to procurement of
machinery, and 20-25 percent was spent to supplement the wages of the vocational course
instructors. By 2000, however, less than 5 percent of the fund’s revenues were being used as
stipulated, while the rest was reallocated by the government as a general budget item. The
mandatory allocation was abolished during the economic reforms in 2001, at which time the
balance in the fund was transferred to the general budget.
6.2
Initial Vocational Education83
Secondary education institutions devoted to formal vocational and technical education are
grouped under two main categories: Vocational High Schools (VHS) and Technical High
Schools (THS). In addition to these specialized schools, there are Comprehensive High
Schools which implement general, as well as vocational and technical curricula. All told,
hands-on education directed to more than 130 occupations is given at the secondary level.
VHSs are the workhorses of the system. All departments of VHSs are open to basic
education graduates. THSs pick their students from among those who have successfully
completed their first year at VHSs. Like general high schools, some vocational and technical
high schools provide foreign language instruction. These are dubbed Anatolian VHSs and
THSs (following the naming convention applicable to general high schools). Anatolian High
Schools have a good reputation, and get to choose their students by a nationwide exam. In
theory students have equal access to all components of the secondary school system.
81
See Akpınar and Ercan (2002), section 3.3.4 for a detailed discussion.
In 2001 its name was shortened to Vocational Education Law.
83
We were unable to obtain systematic information on drop outs.
82
65
However, vocational and technical schools have traditionally drawn their students from
among the less privileged.
As demand for higher education grew, VHSs have tried to prepare their students for higher
education and assist them in acquiring an occupation at the same time. This has resulted in
their not sufficiently executing either one of their functions. Up until 1997, at least in
principle, the graduates of general, vocational, and technical high schools had equal access to
higher education. By altering the regulations that govern entry to universities, the 1998
reform sought to refocus vocational and technical high schools on their skill-acquisition
functions.
VHSs have different names according to their program type and administrative structure.
Industrial VHSs generally implement programs that give priority to industrial production. In
the VHS for Girls, the emphasis is on services. Commerce VHSs place emphasis on
programs related to trade and service sectors. Religious VHSs incorporate the teachings of
Koran and Islamic scholars into their education programs. In Health VHSs connected to the
Ministry of Health, skilled personnel for the health sector are trained. Agricultural VHSs
operate under the Ministry of Agriculture and Rural Affairs and train the work force for
agriculture extension programs. All VHSs are co-educational.
The duration of a regular VHS is 3 years. Anatolian VHSs teach foreign language (typically
English) preparatory classes in the first year. This is followed by 3 years of vocational
education. THSs typically take 4 years to complete. These schools follow a curriculum
which mimics the one implemented in the science branch of general high schools alongside
their vocational curriculum. Thus, the students’ capacity to pursue higher education is
augmented. Comprehensive high schools located in small residential areas offer general,
vocational and technical secondary education programs under one administration. These
schools were established in 1992 in an attempt to broaden the education opportunities
available in communities that are too small to have separate public school systems.
Legislation passed in 2001 is aimed at broadening the reach further. It instructs the MoNE to
give priority to small residential communities in establishing vocational and technical
training centres that offer secondary education diploma and certificate programs.
Supply of training opportunities:
The time set aside for skills training differs depending on fields of specialization and school
types. The time allocated for practical training in the last year of vocational high schools is
generally 24 hours per week. Students participating in this type of training receive two days
theoretical training and three days practical training at enterprises. Theoretical training which
is at least 12 hours a week may be given by schools, or the training units of enterprises.
New standards have been established in 2001 for the creation of practical training
opportunities. Small enterprises with less than 20 employees may provide skills training to
students of VHSs if they so desire. Larger enterprises with 20 or more employees, that
operate in the provincial capitals and rely on occupations covered under Law no. 3308, have
to provide practical training to students of VHSs. The number of trainees they are obliged to
accommodate is not less than 5 percent, and not more than 10 percent of the total workforce
of the enterprise. Furthermore, enterprises with more than 200 employees have to establish a
unit for practical training and appoint training personnel to the unit.
Certification:
A diploma is given to those who successfully complete secondary vocational and technical
education schools. Students who have received a diploma from a three year vocational and
technical education institution may either attend mastership courses organized by the MoNE
66
or directly take the Mastership Examination. Those who are successful in this examination
receive a “Mastership Certificate.” Graduates of four year vocational and technical school or
institution are also given a “Certificate to Open a Workplace” alongside their diplomas. This
certificate is equivalent to a mastership certificate in terms of the rights and responsibilities it
endows.
Transition to employment:
Although vocational school education is expected to help the graduates ease their way into
the labour market, statistics reveal that a significant majority continues with higher education.
According to HLFS 2001, of the 22.3 million strong work force, approximately 1.5 million
(6.9 percent) were vocational and technical high school graduates. Yet in year 2000 alone, a
total of 220 thousand students graduated from secondary vocational and technical education
schools. This amounts to one potential labour market entrant for every 7 employed
vocational or technical high school graduate. Employment would have had to expand by 1
percent in one year just to absorb all the vocational and technical school graduates.
In 2001 while the nationwide unemployment rate was 8.5 percent, it reached 13.3 percent
among vocational and technical high school graduates, exceeding that for general high school
graduates. As we saw in section 5.3, youth unemployment rates are quite a bit higher. Males
who do not enrol in a higher education program are enlisted for compulsory military service
at age 20. Females do not have an alternative. Consequently the situation is worse for
females. Although those in the 15-19 and 20-24 age groups have roughly the same
unemployment rates (see Table 5.3.1), the share of 15-19 year olds among the unemployed
has been going down since 1997 (see Table 5.3.2). This suggests that high unemployment
rates for vocational high school graduates is discouraging participation, and encouraging
further investments in education. But for many individuals, this could simply be
postponement of unemployment. The present situation presents a challenge for labour
market policy: Turkey will have to train its labour force so that it can improve productivity,
but currently it is unable to provide jobs for a large segment of those who are trained.
6.3
Continuous Training and Adult Education84
Continuous (vocational and technical) training and adult education will be examined under
two subheadings, apprenticeship training and non-formal training. Although there is an upper
age limit of 19 to enter formal apprenticeship training (per the amendment made to Law no.
in 2001), we chose to examine it under adult education because it is fundamentally different
from formal schooling.
6.3.1
Apprenticeship training
Apprenticeship training first took its place in the national education system with Law (no.
2089) enacted in 1977. Subsequently, the Apprenticeship and Vocational Education Law
(no. 3308) was enacted to achieve integration of apprenticeship, formal and non-formal
vocational and technical education under a unified system. MoNE is responsible for
conducting VE&T activities in 110 occupations (as of March 2003) covered by Law no.
3308. The Law charges professional organizations with the responsibility of carrying out
similar activities in occupations outside the list. The Turkish Confederation of Trades and
Craftsmen [Türkiye Esnaf ve Sanatkarlar Konfederasyonu (TESK)], which has the widest
organizational network in the country, takes plays a key role in non-governmental VE&T.
Apprenticeship training involves the theoretical and practical training of youths who work at
enterprises in order to learn a vocation after completing compulsory education. They must be
84
This section has been condensed from Akpınar and Ercan (2002), section 3.3.3.
67
at least 14 years old. Those under the age of 19 cannot be employed at a workplace without
an apprenticeship agreement between the worker and the employer. Between 1997 and 2001,
620 thousand young people received training in courses organized by the MoNE. In 2001,
there were about 250,000 students in the entire VE&T system, roughly half of whom were in
apprenticeship training.
From Apprentice to Master:
Apprenticeship training involves four stages: Candidate Apprenticeship, Apprenticeship,
Journeymanship, Mastership. Candidates are those who have completed their compulsory
basic education but who are under the age of 14. Candidate apprentices and apprentices have
student status and have all the rights given to students. They are not included in the number
of personnel working at a workplace. The duration of apprenticeship training varies between
2 and 4 years, depending on the profession, and proceeds without any breaks. Apprenticeship
training starts with a probation period. This period is between one month and three months,
depending on the characteristics of the profession. Wages have to be paid during this time.
Employers are responsible for paying at least 30 percent of the appropriate minimum wage to
candidate apprentices and apprentices with whom they have signed a contract.85 Candidate
apprentices and apprentices are insured against work accidents, illnesses related to the
profession, and other illness. The insurance premiums are paid by the State.
Those completing the apprenticeship training period may take the Journeymanship
Examination, which is based on both theoretical and practical knowledge. Those who are
successful earn a “Journeymanship Certificate.” Journeyman training is undertaken by those
who have obtained journeyman status, to graduate to master level. This training is organized
around a three year curriculum, and is given at Vocational Training Centers (VTCs) outside
working hours. Journeymen who have completed their training earn the right to take the
Mastership Examination. Journeymen who have not attended this training may also take this
examination upon providing proof that they have worked for at least five years in their
profession. As pointed out in the previous section, the diploma obtained from a vocational or
technical school entitles the bearer to take the Mastership Examination. Successful
candidates earn a “Mastership Certificate.”
VTCs also offer pedagogy courses which are designed to give the Mastership Certificate
holders the competency to undertake the training responsibilities of candidate apprentices and
apprentices. The total duration of these Master Trainer courses is 40 hours.
Organizations involved in Apprenticeship training:
Organizations involved in the theoretical and practical training of candidate apprentices and
apprentice students are listed below.
Enterprises: The responsibility for the practical training of candidate apprentices and
apprentice students falls on enterprises. Those enterprises which employ candidate
apprentices or apprentice students are legally required to have a Master Trainer, even if they
have only one trainee. Moreover, if the enterprise is training ten or more apprentices (or
apprentice students), then it will have to establish a Training Unit for this purpose. Master
Trainers (or teaching personnel) who have mastership certificates and have received work
pedagogy training are appointed to these units.
85
The minimum wage for those less than 16 years of age is about 85 percent of the minimum
wage for older workers.
68
Vocational Training Centres (VTCs): The theoretical training and the part of practical
training left incomplete at workplaces of candidate apprentices and apprentices is handled by
VCTs connected to the GD of Apprenticeship and Non-Formal Education.
Supra Training Centres (STCs) [İşletmelerüstü Eğitim Merkezleri]: These centres are
established and run by the Turkish Confederation of Trades and Craftsmen (TESK). Their
responsibilities are the same as STCs.
6.3.2
Non-formal education and training:
The National Education Basic Law (no. 1739) defines non-formal education and training
(NFE&T) as the collection of education, training, production, guidance and implementation
activities offered throughout one’s working life. Those who have not completed formal
VE&T are the main target.
Structure and organization of the Non-formal Education and Training system:
Law no. 1739 states that non-formal education and training (NFE&T) will be organized in an
integrated way to complement formal education, so that the qualities acquired through formal
education can be imparted using different means. However the very nature of the activities
subsumed under it, make it difficult to identify the structure and organisation of the “NFE&T
system.” In what follows we describe the main components of what essentially is an
amorphous system.
Among State agencies, the recently established Employment Organisation (İŞKUR) is
charged with the responsibility of synchronizing NFE&T activities with labour market
policies. İŞKUR fulfils its duties in cooperation with private and public organizations and
institutions.86 Through its local organizations, the Ministry of Agriculture and Rural Affairs
provides training on agriculture and home economics to villagers.
The broader NFE&T needs of the public are addressed by the appropriate GD of the MoNE.
Among the primary targets of the programs offered under the auspices of the MoNE are
individuals who have dropped out of compulsory basic education, and illiterate women in the
14-44 age bracket. Priority groups are identified in accordance with program topics and care
is taken to implement training in harmony with formal education. Flexibility is sought with
respect to duration, place and level. Programs for students or workers organized outside
school or work hours constitute the majority of the activities.
Although NFE&T services are provided by many private and non-profit organizations, many
are limited to in-service training activities designed to address the needs of their own
personnel or members. Almost all professional organizations (many of which are identified
by trade or craft affiliation) provide NFE&T activities geared to respond to the specific needs
of their members. Some professional organizations extend services to potential members and
non-members. The Vocational and Technical Education Research and Development Centre
(METARGEM), was established in 1986 for the purpose of undertaking planning, research,
development and production services required by MoNE.
The Small and Medium Sized Enterprises Support Administration Directorate (KOSGEB), an
autonomous entity related to the Ministry of Industry and Trade, approaches the problem
from the entrepreneurial angle. KOSGEB was established in 1990 to facilitate the speedy
adaptation of small and medium sized enterprises (SMEs) to technological developments, to
enhance their competitiveness, and to increase their contribution to the economy. Towards
this end KOSGEB organizes class room and laboratory based courses, and short-term on-the86
Detailed information on İŞKUR and its activities is given in sections 7.1, 8.2 and 8.3.
69
job training on technical, administrative, financial, and regulatory topics. It targets
individuals who are about to establish, or who have recently established their own firms. Its
technology development centres incubate and encourage the formation of high value added,
technology oriented SMEs.
Universities also play a role in the delivery of NFE&T programs, usually in cooperation with
other public and private organizations and institutions. By law Municipalities [Belediyeler]
are charged with the responsibility of organizing courses aimed at assisting individuals in
acquiring a profession and finding employment. They often fulfil their obligations in
cooperation with various organizations attached to the MoNE or universities.
A number of NGOs offer NFE&T activities. Some of the most visible among these are
foundations established by affiliates of TİSK, the Turkish Confederation of Employer
Associations, with the specific aim of supplying NFE&T. MESS Training Foundation
(MEV) established by the Turkish Employers’ Association of Metal Industries (MESS), the
Turkish Textile Foundation established by the Turkish Textile Employers’ Association
(TÜTSİS), and the Turkish Construction and Installation Workers’ Training Foundation
(İNİŞEV) established by the Turkish Employers’ Association of Construction Industries are
some of these foundations. The enhanced visibility of private training institutions in recent
years attests to the increased demand for NFE&T.
Governmental NFE&T institutions:
A list of major governmental institutions dedicated to the provision of NFE&T services
follows. Unless specified otherwise, these are attached to the MoNE. Note that there is no
centralized testing-assessment and certification in non-formal education as there is in
apprenticeship training. Typically a test is given by the instructor at the end of each course.
There are mid-term tests in courses of long duration. A “Successful Completion Certificate”
is given to those who are successful in these tests. Those who are not successful receive a
“Course Participation Certificate.”
Practical Trade Schools for Girls: [Pratik Kız Sanat Okulları] These are aimed at young girls
as well as women who may or not may not have completed formal education, to help them
acquire a profession in line with their interests. Training courses and programs of various
lengths and levels are offered on home and family management knowledge and skills. These
schools operate under VHSs for Girls, or independently.
Domestic Science Schools: [Olgunlaşma Enstitüleri] These schools also target young girls
and women who may or may not have completed formal education, but focus on activities
that are not necessarily vocational in nature (such as hobbies and crafts) but may be imparting
labour market skills nevertheless. A good example is carpet weaving.
Industrial Practical Crafts Schools: [Endüstri Pratik Sanat Okulları] These are non-formal
education institutions that assist those who could not continue their education (after
completing basic education) in gaining the habits and attitudes necessary to function in a
number of occupational fields. In general they operate under Industrial VHSs.
Technical Training Centres for Adults: [Yetişkinler Teknik Eğitim Merkezleri] These train
primary school graduates who want to improve their knowledge and skills in new
technologies in the industrial field.
Hotel and Tourism Training Centres for Adults: [Yetişkinler Otelcilik ve Turizm Eğitim
Merkezleri (YOTEM)] These have been organized as part of Anatolian Hotel and Tourism
Vocational High Schools which train the mid level work force in the tourism sector.
70
Tourism Training Centres: [Turizm Eğitim Merkezleri (TUREM)] Operated by the Ministry
of Tourism, these centres offer basic training courses to supply intermediate level personnel
for the sector since 1967. Annual enrolment has varied between 1000 and 1300, to yield a
total of 16,860 trainees as of early 2003. The centres are located in parts of the country that
attract major tourist flows.
Public Training Centres: [Halk Eğitim Merkezleri] These are found all around the country, in
provinces, districts, sub-districts, even villages. They offer courses on society and culture, as
well as vocational and general knowledge courses. Given their community orientation, their
educational and training activities can be delivered anywhere — in prisons, poor areas, public
and private institutions in districts, sub-districts and school rooms of villages.
Handicrafts Training Centres: [El Sanatları Eğitim Merkezleri] These operate nationwide
under the Ministry of Agriculture and Rural Affairs. Their education and training services
are complemented by free boarding and are provided to women and men in the 14-20 age
group who have at least a primary school diploma. The enrolment is about 1000 trainees per
year.
Continuous Training Centres: [Sürekli Eğitim Merkezleri] These are institutions established
under universities to provide NFE&T services for different target groups.
Supra Training Centres: [İşletmeler Üstü Eğitim Merkezleri] These have been established by
TESK (see the previous section). They provide remedial practical training for apprentices as
well as NFE&T activities geared towards the needs of craftsmen, and small and medium
enterprises.
Table 6.3.1, based on data published by MoNE, has enrolment statistics for the year 2000 for
a subset of the public institutions identified above, as well as the private sector. This
provides a lower bound for the size of the NFE&T system. Nearly 3 million individuals were
engaged in non-formal education and training in these institutions. The private sector
accounted for 61.6 percent of the total.
The data in Table 6.3.1 combine general and vocational non-formal education. Institutions
that prepare students for the Central Entrance Exam for higher education [Dershaneler]
concentrate on general rather than vocational education. The fact that half-a-million
candidates take remedial education and test preparation courses in private institutions, in
order to gain access to publicly funded higher education, is one of the ironies of Turkey’s
formal education system. Around this time close to two million students were enrolled in
secondary schools while close to one million were in higher education (see Table 6.1.5).
Although they are somewhat dated, the SIS data in Table 6.3.2 provide a better sense of the
size and composition of the vocational component of the system. According to these data,
half-a-million individuals completed training over the school year 1997-1998 while 570
thousand were still enrolled.87 At this time there were around 800 thousand students in the
formal vocational education system.88 A noteworthy point is the fact that women accounted
for 75 percent of those who completed their training. Another point is that 13 percent of
those who started dropped out.
87
Courses such as music courses, art courses, driving courses, foreign language courses,
which need not be constitute vocational training, are included in private courses. Driving
courses make up a large portion of these.
88
We took the trends in Table 6.1.2 into account, and assumed that 40 percent of the students
in the secondary school system were in V&TE. We assumed the stock in 1997-1998 was the
same as that in 1998-1999, and took the figure of 1.9 million from Table 6.1.5 as our base.
71
Table 6.3.1. Non-Formal Education Institutions Connected to MoNE (Year 2000)
Number of
Institutions
Number of
Participants
Number of
Teachers
Practical Trade Schools for Girls
439
94,462
339
Domestic Science Schools
12
2,606
311
Technical Training Centres for Adults
12
160
*
Public Training Centres
920
1,018,359
5430
Private Training Institutions
192
5,297
957
**
14,318
**
1,575
1,135,202
7,037
3,181
1,295,995
21,145
Type of Institution/Centre
Public
Vocational Courses (According to Law 3308)
Public Total
Private Courses
Institutional preparation for Central Entrance
Exam to higher education [Dershaneler]***
1,864
523,244
18,175
Private Total
5,045
1,819,239
39,320
Total (Public+Private)
Source: MoNE, Quantitative Data, 2000
6,620
2,954,441
46,357
Notes: Apprenticeship training institutions not included.
* Teachers of vocational high schools that these centers are connected to work in these centers.
** The number of institutions and teachers could not be given as these are organized by vocational
and technical schools and institutions.
*** Courses for entrance examination preparation to enroll at different levels of formal education.
Table 6.3.2. Vocational Education Institutions Connected to the MoNE (1997-1998)
Started
Continuing
Institutions
Completed
Total
Male
Female
Practical Trade Schools for Girls
82,294
69,957
65,032
0
65,032
Domestic Science Schools
1,735
1,401
1,174
0
1,174
141
106
98
97
1
438,810
387,245
343,669
75,745
267,924
8,369
7,841
7,369
4,963
2,408
Private Courses
124,455
106,805
83,664
40,565
43,099
Total
655,820
573,371
501,006
121,370
379,636
Technical Training Centres for
Adults
Public Training Centres
Vocational Courses (According
to Law 3308)
Source: SIS, National Education Statistics, Non-Formal Education (1997-1998).
The private sector accounts for a small share of the totals in Table 6.3.2. Based on
information obtained from All Private Training Institutions Employers Union [Tüm Özel
Eğitim Kurumları İşveren Sendikası (TEKİŞ)], a member of TİSK, in 2000 there were 1019
private training institutions providing vocational and technical education with a combined
72
student capacity of 1,740,875. These institutions operate in all the provinces. According to
TİSK officials, only 10 percent of the capacity is used and the rest remains idle.
6.4
Training for the Unemployed
The State agency which is charged with the responsibility of providing training to the
unemployed is the Employment Organization (İŞKUR). While some of these programs have
dedicated funding and consequently target specific groups (such as the insured unemployed,
workers displaced by privatization, convicts, etc.), others are open to anyone who registers
with the organization. Since the organisational structure and duties of İŞKUR are discussed
in detail below (see sections 7.1, 8.2 and 8.3), we refrain from elaboration at this point.
73
7.
Labour Market Institutions
7.1
Government Bodies89
The bureaucracy that is responsible for the domains of work and workers is organized under
the Ministry of Labour and Social Security [Çalışma ve Sosyal Güvenlik Bakanlığı]
(MLSS/ÇSGB). In a comprehensive organizational reform undertaken in 2000, three State
agencies were brought together under a new central body, the Social Security Organization
[Sosyal Güvenlik Kurumu] (SSO/SGK). Two of these were existing institutions in charge of
social security: the Social Insurance Organization [Sosyal Sigortalar Kurumu] (SIO/SSK) for
wage and salary earners and Bağ-Kur for the self-employed, including those in agriculture.90
The third was the Turkish Employment Agency [Türkiye İş Kurumu] (İŞKUR). It replaced
the existing Employment Brokerage Agency [İş ve İşçi Bulma Kurumu] (İİBK), whose
mandate and organizational structure were considered inadequate for responding to the
changed conditions in the labour market.91 İŞKUR’s broadened responsibilities include
protecting employment and helping to counter unemployment by engaging in training
programs, managing the newly established unemployment insurance, conducting studies on
job analysis and occupational classifications, and offering job and career counselling
services. Active labour market measures implemented by İŞKUR are discussed in some
detail in section 8.2.
The three institutions connected to the SSO are administratively and financially independent.
They are headquartered in Ankara and have regional offices around the country. SSK is the
biggest of the three, with over 65 thousand personnel. İŞKUR is the smallest, with less than
2000. The SSO is presently an umbrella organization, whose main task is to coordinate the
social security organizations. As part of the reorganization, a new Financing and Actuarial
Department was established under the SSK. This department is responsible for managing
SSK’s assets and making projections based on demographic and actuarial principles.
Departments engaged in actuarial studies have also been organized at the MLSS itself, at
Bağ-Kur, and at İŞKUR (the Unemployment Insurance Department). Although no
significant additional restructuring is expected in the short run, unification of the separate
social security organizations is on the agenda.
In addition to the MLSS, at least four other ministries undertake activities which directly or
indirectly influence labour market outcomes for workers. As discussed at length in chapter 6,
the Ministry of National Education is in charge of vocational education and training. Two
other ministries oversee training functions which overlap with the broader mission of İŞKUR.
89
Detailed information on the agencies covered under this heading may be found on their
web sites: [http://]www.calisma.gov.tr (Ministry of Labour and Social Security),
www.ssk.gov.tr (Social Insurance Organization), www.bagkur.gov.tr (Bağ-Kur),
www.emeklisandigi.gov.tr (social security organization for government white-collar
employees), www.iskur.gov.tr (Turkish Employment Organization), www.kosgeb.com (SME
development centre), and www.turizm.gov.tr (Ministry of Tourism).
90
Additional relevant information on these, and the Pension Fund [Emekli Sandığı], which
administers the retirement fund and social security services for white-collar employees in the
public sector and military personnel, has been provided in section 2.3.
91
Although it has been functioning as envisioned, the (de jure) formation of İŞKUR was
finally realized on June 24, 2003, with the passage of Law no. 4904 in the Parliament. It will
become law upon approval by the President and publication in the Official Gazette [Resmi
Gazete].
74
The small and medium size enterprise development centre KOSGEB, an autonomous agency
established under the Ministry of Industry and Trade [Sanayi ve Ticaret Bakanlığı], is
responsible for training activities directed to its constituency (see section 6.2.2). Tourismtraining centres TUREM, attached to the Ministry of Tourism [Turizm Bakanlığı], train the
young for mid-level positions in the tourism sector. The Ministry of Health [Sağlık
Bakanlığı] has responsibility for overseeing the medical personnel and service quality in the
hospitals operated by SSK. Finally, State institutions such as the SPO, HEC, the State
Personnel Office [Devlet Personel Başkanlığı], and the General Directorate of the Status and
Problems of Women [Kadın Statütüsü ve Sorunları Genel Müdürlüğü] also exert influence on
labour market outcomes through their planning, advisory and regulatory functions.
7.2
Labour Market Regulations
The main laws and statutory decrees that regulate the labour market and a summary of their
contents are listed in chronological order in Table 7.2.1. The Ministry of Labour was formed
in 1945. In 1974, the Ministry of Social Security was founded and in 1983, it was merged
with the Ministry of Labour. In what follows we highlight the key changes in the legal and
regulatory framework in an attempt to underscore the pace of progress. Some of the
individual pieces of legislation are discussed in further detail in the appropriate sections of
the report.
The first law on the labour market is dated 1924. It instituted a weekend vacation on Fridays
(changed to Sundays in 1935). Turkey became a member of the ILO in 1932. The first
comprehensive work law was enacted in 1936. This had provisions for the establishment of a
social security system, which was achieved in piecemeal fashion (Emekli Sandığı was
founded in 1950, SSK in 1965, and Bağ-Kur in 1971). The first law on labour unions was
enacted in 1947. In 1963, union activities were broadened, bargaining over pay, and strike
and lockout regulations were legislated. This set the stage for the ascendancy of the labour
movement. 92 Work Law (no. 1475) was legislated in 1971 as a reaction to the growing
strength of the militant wing of the labour movement. Law no. 1475 and Law no. 657 which
pertains to civil servants, together constitute the ‘individual’ branch of labour legislation, in
that they deal with the relation between the worker and the employer as individual parties in a
contractual context. There have been several patchwork attempts to modify Work Law no.
1475, notably in 1989 and in 2002. A new Job Security Law (no. 4773) was passed shortly
before the general elections and became effective in March 2003. A new comprehensive
Work Law (no. 4857) was enacted in June 2003.
The current legislation on collective bargaining (Unions Law no. 2821), which regulates
employee-employer relations conducted through intermediation efforts of unions, was passed
in the post-coup environment of 1983. It has been amended several times (most recently in
1995). Recent amendments removed some of the restrictions on union activity. White-collar
unions in the public sector were allowed in 1965, but banned in 1971. They re-emerged in
1990.93
92
A short history of unionization (1946-1996) and detailed information on unions active as of
1996 may be found in Aslan et al. (1998). (A revised version is available on the web site of
the Friedrich Ebert Foundation: http://www.fes.de/fulltext/bueros/istanbul/00253toc.htm.)
For a detailed history, see Koç (1997, 1998).
93
For a history of white-collar unions, see http://www.kesk.org.tr, the web page of KESK,
the Confederation of Public Employee Unions [Kamu Emekçileri Sendikaları
Konfederasyonu].
75
Turkey’s inclusion among the list of potential EU members set the pace and tone of recent
changes. Unemployment insurance for workers belonging to the SSK was initiated in 1999.
The Law on Public Employees’ Trade Unions (no. 4683) was enacted in 2001 to address EU
concerns about restrictions on public sector employees’ rights to organize. Regulations on
retirement age and job security laws were modified in 2002.94 As of the writing of this
report, Turkey had ratified 40 ILO conventions, 36 of which were in force.95
Table 7.2.1. Main regulatory texts on the labour market
Subject
Date
No.
Weekend vacation
1924
394
Law or
decree
Law
Notes
IL0
Work life and social
security
1932
1936
3008
-Law
Ministry of Labour
Ministry of Labour
Union activity
1945
1946
1947
4763
4841
5018
Law
Law
Law
-
Pensioner’s Chest
1950
5434
Law
-
Union activity
1963
274
Law
Union activity
1963
275
Law
-
Social Insurance Law
1965
506
Law
-
White-collar public
employee unions
Marine work law
1965
624
Law
-
1967
854
Law
Work law
1971
1475
Law
-
-
-
94
95
In towns with population ten thousand or
above, mandatory weekend vacation on
Fridays is legislated (Sundays in 1935).
Revised many times (latest in 1972).
Turkey became a member.
First work law
It had provisos for the gradual
establishment of social security.
Establishment
Enhanced responsibilities
First unions law
Aims for governmental control of the
activities of workers and employers’
unions. Government employees
established unions.
Establishment
Social security organization for military
personnel, white-collar public
employees, and their dependents.
Unions law
1961 constitution enlarged union rights.
Abolished in 1983.
Contract bargaining, strikes, and lockout
regulations.
Social security coverage was enlarged
from the coverage of work law no. 3008
to anyone working under a contract for
an employer. Previous regulations had
also covered seamen (law no. 5953),
and news media (law no. 6379).
Outlawed after the 1971 military coup.
Concerns seamen and ship owners.
Amended a few times (last in 1988).
Covers most wage-salary workers.
Note: Almost all of the 2-million strong
public officials are subject to law no. 657.
There are also approximately 250
thousand white-collar public employees
on fixed-term contracts. They are
regulated under the governmental
decree no. 399.
See section 8.1 below for detailed information on job security legislation.
The list may be reviewed at: http://webfusion.ilo.org/public/db/standards/normes/appl/.
76
Bağ-Kur
1971
1479
Law
-
Ministry of Social
Security
Work life
1974
4-1040
Presidential
decree
Constitution
-
1983
-
Unions law
1983
2821
Law
-
Weekly working hours
MLSS
1983
1983
2869
184
MLSS
KOSGEB
1985
1990
3146
3624
Law
Governmental
decree
Law
Law
-
Establishment of a social security
organization in agricultural and other
self-employment.
SSK and Bağ-Kur had a ministry.
Item 48: Freedom to work and contract.
Item 49: Right to work.
Item 50: Working conditions.
Item 51: Right to form unions.
Item 52: Union activity (abolished in
1995).
Item 53: Right for collective contract
bargaining.
Item 54: Right to strike and lockout.
Item 55: Minimum wage.
Regulates the establishment and
activities of employers and workers’
unions.
Occupational and workplace unions are
illegal.
From 48 to 45.
Unification
Changes to 184.
Organization for SME adoption of high
technologies.
- It is ‘related’ to the Ministry of Industry
and Trade.
Unemployment
1999 4447
Law
- Time-limited insurance for those who
insurance
lose their jobs through no fault of their
own.
- Started in 2002.
- İŞKUR collects, administers, and pays
out the monies.
SSK
2000 616
Governmental - SSK reorganized: It now has two general
decree
directorates for social insurance and
health services.
İŞKUR
2000 617
Governmental - Former employment agency was
decree
reorganized as the Turkish Employment
Agency.
MLSS
2000 618
Governmental - Reorganization to accommodate the
decree
above mentioned institutional changes.
Retirement age
2002 4759
Law
- Potential age for retirement was pulled
up from 38 for women and 43 for men, to
58 and 60, respectively. The law allows
for a transition period.
Job security
2002 4773
Law
- The law states conditions for termination
of the job contract by the employer.
Work Law
2003 4857
Law
- Comprehensive law that regulates the
sphere of work. Replaces Law no. 1475.
İŞKUR Law
2003 4904
Law
- The legal framework for İŞKUR (Turkish
Employment Agency).
Sources: [http://]www.calisma.gov.tr (Ministry of Labour and Social Security), www.ssk.gov.tr (Social
Insurance Organization), www.bagkur.gov.tr (Bağ-Kur), www.emeklisandigi.gov.tr (social security
organization for government white-collar employees), www.iskur.gov.tr (Turkish Employment
Organization), www.kosgeb.com (SME development centre), www.turizm.gov.tr (Ministry of Tourism),
www.turkis.org.tr (TÜRKİŞ).
-
77
Regulations on hours of work:96
Civil servants outside the health sector have had a 40 hour work week since 1975. Civil
servants in the health sector have a longer, 45 hour work week. For others the statutory
length of the work week was reduced from 48 to 45 hours per week in 1983. In
establishments which operate 6-days per week the maximum per day is 7.5 hours. If
Saturday is a half-day (say 5 hrs.) then remaining time is distributed evenly as 8 hours per
day. If establishment has a 5-day work-week then maximum is 9 hours per day. The
maximum per day is set at 8 hours for children under 16. In certain types of work other rules
apply. For example, drivers of heavy vehicles must not work more than 9 hours per day.
Time spent nursing by a working mother is reckoned as part of the statutory hours of work.
Work performed past the daily maximum is regarded as overtime work. Overtime wages
equalling 1.5 times the hourly wage apply after 7.5, 8, or 9 hours per day, depending on the
type of work-week adopted by the establishment. Overtime work must not exceed 3 hours
per day, and 90 days per year. Overtime work is prohibited in operations where health
considerations put a limit on hours of work. Children are not permitted to work overtime.
There are no overtime provisions for seamen.
Work performed during the night, defined as that part of the day beginning not later than 8
p.m., and ending not earlier than 6 a.m., is considered night work. Night work cannot exceed
7.5 hours per shift. Men under the age of 18 and women irrespective of their age cannot be
employed in industrial night work. In establishments that rely on shift work, workers are not
allowed to be engaged in the night shift for more than a week. When changing shifts,
workers must be given at least 8 hour’s rest. Employees engaged in shift work are entitled to
a weekly rest day of not less than 24 hours.
Planned changes:
A new comprehensive labour law, which would replace the existing Work Law (no. 1475)
was on the legislative agenda of the Parliament which was dissolved as a result of the
elections in November 2002.97 The draft was prepared by a scientific committee consisting
of 9 university professors, appointed on the basis of a protocol between the MLSS, and the
major employee (TÜRK-İŞ, HAK-İŞ, and DİSK) and employer (TİSK) organizations. The
objective was to enact a new work law that addresses employer and employee concerns and is
in accordance with the EU regulations. Since legislation that increased severance pay from
15 to 30 days’ wages for every year worked was enacted before the unemployment insurance
system was initiated, employers advocated a revision of the protective clauses. The draft also
included stronger job security regulations that catered to demands from worker unions. This
latter part was enacted by the parliament shortly before the recent elections despite strong
resistance from employers’ unions.98 A detailed discussion of the existing regulation on
severance pay, unemployment insurance, and job loss compensation (for displaced workers
of SEEs), which together constitute the framework for passive labour market measures, is the
subject of section 8.1.
96
Excerpted from Dereli (1997), Ch.4.
In fact the new law (no. 4857) was enacted on May 22, 2003, after the writing on the report
was completed.
98
Press releases on the subject may be found on the TİSK web site, http://www.tisk.org.tr.
97
78
7.3
Industrial Relations
The current framework for industrial relations has been established by two laws that date
from 1983: Unions Law (no. 2821) and the Law on Collective Labour Agreements, Strikes,
and Lockouts (no. 2822). Law no. 2821 demarcates 28 economic activities (EAs) [iş kolu] as
the organizational domain of employee and employer unions. In order to be able to engage in
collective bargaining with the employees, a union has to represent more than half of the
workers employed in the establishment, and at least 10 percent of the workers in the
workforce associated with the EA of the workplace.
The EA to which the workplace belongs is determined by the MLSS. The MLSS regularly
publishes data on Workers and Establishments broken down by EA. Based on the statistics
from January 2002, a total workforce of about 4.6 million workers were employed by 383
thousand establishments. Of the total workforce, close to one million were employed by
establishments with 1-9 workers, and about 1.2 million were employed by establishments
with 10-49 workers. The average size of the workforce per EA was around 163 thousand.
Two of the EAs had workforces which were smaller than 10 percent of this average (9,040 in
ship building, 9,828 in journalism), while six boasted workforces twice as large as the
average (328 thousand in food, 513 thousand in textiles, 530 thousand in metal, 664 thousand
in construction, 431 thousand in commerce, education, and fine arts, 418 thousand in general
services).99
The requirement of representation for 10 percent or more of the workforce of the EA
provision virtually eliminated unions at the enterprise level. Although some independent
unions managed to survive by specializing in small industries, the need to organize at the
national level resulted in centralization. Presently there are over one hundred employee
unions active in the private sector, and over fifty in the public sector. A majority of these are
affiliated with one of three labour union confederations: TÜRKİŞ (the Confederation of
Turkish Trade Unions), DİSK (the Confederation of Revolutionary Trade Unions) and
HAKİŞ. A fourth, MİSK, is considerably smaller, and is more active as a political
organization than a union confederation. On the employers’ side, twenty employer unions
function under a single confederation, TİSK (the Turkish Confederation of Employer
Associations).
Social dialogue:
The legislation that governs industrial relations has stipulations for social dialogue at the
workplace/enterprise level. Union representatives have a say on matters such as annual
leave, discipline, health, and safety. Various other institutions that function at the national or
local level were established with a view towards engendering bipartite or tripartite dialogue.
The list that follows identifies some of the more important ones.100
Economic and Social Council: [Ekonomik ve Sosyal Konsey] This Council was established as
an advisory body in 1995 to address economic and social issues at the highest level. Its
formal status has been affirmed by legislation enacted in April 2001 (Law no. 4641 on
Establishment and Working Principles and Procedures of Economic and Social Council). It
is chaired by the Prime-Minister and includes Deputy Prime Minister(s), Ministers of
Finance, Labour and Social Security, Industry and Trade, Agriculture, Energy and Natural
99
The data are from Ministry of Labour and Social Security (2002), p.127.
This list has been excerpted from the paper submitted by Turkey to a Conference
organized by the ILO and ETF, titled “Lifelong Learning and Social Dialogue,” held in
Malmö, Sweden, 23-25 April 2001.
100
79
Resources and related Ministers without portfolios, plus Undersecretaries of the State
Planning Organization, the Treasury, and Foreign Trade on the government side. Social
partners include the Turkish Union of Chambers of Commerce and Bourses (TOBB) [Türkiye
Odalar ve Borsalar Birliği], TİSK, Turkish Confederation of Tradesmen and Artisans
(TESK) [Türkiye Esnaf ve Sanatkarlar Konfederasyonu], and Turkish Union of Chambers of
Agriculture (TZOB) [Türkiye Ziraat Odaları Birliği] from the business side, and DİSK,
HAKİŞ and TÜRKİŞ from the workers’ side.
Provincial Employment Committees: [İl İstihdam Kurulları] These were set up to provide
tripartite consultation at the province level. They contribute to employment policy making by
addressing issues such as design of measures that prevent unemployment and increase
employment rates, including training activities. The Committees are chaired by the Governor
of the province, who is appointed by the Government. They include local representatives
from the offices of İŞKUR and relevant ministries, employer and employee organizations,
boards of commerce and industry, and universities.
Minimum Wage Determination Commission: [Asgari Ücret Tespit Komisyonu] This
Commission convenes with the participation of the representatives from the State, trade union
confederations and employer associations. Its membership is renewed annually by the
Ministry of Labour and Social Security.
Supreme Arbitration Board: [Yüksek Hakem Kurulu] This Board has broad powers over
collective bargaining. In particular it resolves conflicts arising from the Government’s
exercise of its power to postpone or ban strikes. Its decisions cannot be appealed. The Board
includes representatives from trade union confederations and employer associations, plus an
impartial third party, typically from universities.
Other platforms for social dialogue include the administrative bodies of various State
agencies which design and deliver services directed to labour market participants. The
General Assembly and Executive Boards of the Turkish Employment Institution (İŞKUR),
are cases in point. Of the 50 members on the general board of İŞKUR, 28 represent employer
organisations, trade unions, institutions of higher education, chambers of commerce and
industry, and voluntary organisations. The others are government appointees who represent
various agencies directly or indirectly involved with employment policy. The Executive
Board of İŞKUR includes one representative each from TESK, and employer and employee
organizations that have the largest representation (currently TİSK and TÜRKİŞ). Two bodies
that function under İŞKUR, the Unemployment Insurance Fund Management Board, and the
Occupational Standards Commission, also have representatives from employee and employer
organizations. Similarly General Assemblies and Executive Committees of public social
insurance institutions (SSK and Bağ-Kur) feature tripartite participation.
Social partners also have a voice in vocational training activities. The Apprenticeship and
Vocational Training Council, and the Provincial Apprenticeship and Vocational Training
Boards adopt recommendations and suggestions from a wide constituency. Autonomous
agencies such as KOSGEB and METARGEM, which play an important role in vocational
education and training (see section 6.3), get resources and input from employee and employer
organizations.
Likely agenda for change:
Passage of a new work law that complies with the ILO norms and addresses the concerns of
the EU is on the short term agenda (see section 7.2). The unemployment insurance
legislation which was enacted in 1999 has been greeted with objections from both sides of the
aisle. Unions find its coverage inadequate. Employers object to additional wage costs and
80
see this as a further blow to their ability to compete in the global market. Employers have
long argued in favour of a reduction of fringe benefits they consider excessive and
strengthening the link between wage costs and actual hours worked. Unions, on the other
hand, have viewed challenges to the non-wage provisions as attempts to reduce the standard
of living of workers.
There are three arguments in the employer concerns about high labour costs: (i) high taxes
paid on wages, (ii) low productivity, and (iii) high costs of job security provisions. In a
recent study, Özyıldırım and Togan (1998) use TİSK data from 1995 to detail wage costs.
They find that out of every 100 TL paid by the employer only 57 TL reaches the worker,
while 43 TL is paid to the government in the form of taxes. Worker’s share includes wage
payments directly related to hours of work (40 TL, or 70 percent of net pay) as well as fringe
benefits (17 TL, or 30 percent of net pay) such as weekend and holiday pay, bonuses and
other legal or contractual payment obligations. The amount paid to the government includes
employer’s contributions to social security (16 TL, or 16 percent of gross pay) and worker’s
share of social security contributions and income tax withholding (27 TL, or 27 percent of
gross pay). The authors point out that these are the highest deduction rates among the OECD
countries.
In another recent study, Daşkıran and Özmen (1998) offer evidence regarding (ii). They
investigate productivity over the period 1965-1995 using two measures: per capita GDP and
output per worker. They conclude that Turkey has the lowest productivity levels when
compared to other OECD countries. In responding to this evidence, labour union
spokespeople are quick to point out that Turkey also has the lowest wages among the OECD
countries. Turning to (iii), TİSK data from 2001 reveal that out of 100 TL worth of labour
costs, 38.6 TL is paid to the government, while 51.9 TL is paid to active workers, and 9.5 TL
to former workers in the form of severance and advance notice payments (TİSK, 2002).
A recent study by Heckman and Pages (2003: Table 2) which relies on data from the end of
the 1990s lends some credence to employer concerns about costs of labour market legislation.
In terms of expected cost of job security provision, at 3.97 months of pay Turkey ranks
second highest in the OECD (below Portugal), but considerably closer to low cost countries
(such as Argentina and Chile) than high cost countries (such as Brazil and Colombia) in Latin
America. Heckman and Pages measure the cost of compliance with social security in Turkey
as 35 percent of the monthly wage, which is higher than the averages for both the OECD (31
percent) and Latin American (21 percent) countries.
The press release based on the seminar on employment policies organized by TİSK lists
macroeconomic instability, expansion of the informal sector, and high levels of
unemployment as the most important problems facing Turkey (December 2002). Similar
views are voiced by TÜSİAD (Turkish Industrialists and Businessmen Association) and
TOBB (the Turkish Union of Chambers of Commerce and Bourses). These concerns have
long been on the agenda of labour union confederations. Although the parties agree that
these are key problems, they differ on the solutions. Employers associations call for
flexibility (less stringent labour market regulations), better incentives for entrepreneurs,
privatization, and wage increases commensurate with productivity gains. Many of the
proposed changes are anathema to labour unions.
Although all three major labour union confederations object to employers’ demands, the issue
of labour market flexibility is firmly on the short-term agenda. Job security, severance pay
and unemployment insurance provisions are likely to be affected. A compromise that
balances the flexibility concerns of establishments, against the job security concerns of
unions and workers is likely.
81
8.
Labour Market Policies101
Despite the neo-liberal outlook of the post-1980 policy reorientation, employment protection
appears to have been a shared goal of the coalition governments that ran Turkey in the
1990s.102 The failed stabilization attempts, slow progress of privatization, and bloated public
administration, are some of the more obvious pieces of corroborating evidence. The lenient
requirements for retirement with full pension payments that remained in place until May
2002, and allowed the governments to extend the benefits of employment to broader
segments of the population, can be seen as an extension of this policy. Thus it is not
surprising that severance pay for workers with indefinite employment contracts was the only
passive labour market instrument that was widely used in Turkey as of the end of 1998. Nor
is it surprising that the fiercest and longest lasting battle between the employer organisations
on the one hand, and trade unions on the other, has been fought over severance pay.
In what constitutes the most notable attempt to address labour market concerns in the post1980 period, the legal framework for unemployment insurance was established in August
1999. The premium collections were started in June 2000 and the first payments were made
in March 2002. The outgoing coalition government also enacted a new Job Security Law,
despite objections of large business organizations.
Two programs targeting displaced workers in the privatized SEEs, initiated and supported by
the World Bank, contain a mix of passive and active measures. The first is the Privatization
Implementation Assistance and Social Safety Net Project (PIAL) which was active during
1994-95. These funds were underutilized, because privatization did not proceed as planned.
The second is the Privatization Social Support Project (PSSP) which started in 2000. The
active measures include training, temporary work, and small business consulting components.
Finally, a multi-purpose program, titled Employment and Training Project, was implemented
between 1993 and 2000 by several government agencies. A component titled Labour Market
Information [Project] (LMIP) was used to upgrade data collection and dissemination
capabilities of the SIS.103 Notably the source used intensively for the purposes of this report,
the HLFS data base maintained on the web page of the SIS, was put together as a result of
LMIP.
In comparison with the EU, the scope of active labour market programs is extremely limited
in Turkey.104 Emphasis is on vocational training programs. The employment record
reviewed above underscores both the need for broader government involvement, as well as
the necessity of changing the nature of government involvement. The establishment of the
Employment Organisation (İŞKUR) is a step in the right direction.
8.1
Passive labour market measures
Currently there are three passive labour market measures in Turkey. Severance payment
obligation of the employer constitutes the oldest, and broadest of these. The recently
101
Subsections 8.1-8.4 have been written in collaboration with İŞKUR Directorate.
See Tansel (2001) and World Bank (2002: 67-70).
103
The surveys funded by the LMIP include: Employment and Wage Structure Survey,
Employment and Earning Survey [the data sources used in *Tunalı (2002)], a special module
of the HLFS dedicated to education, the Informal Sector Survey, the Productivity Survey, and
the Agricultural Wage Survey.
104
See Auer and Popova (2002).
102
82
instituted unemployment insurance covers workers who have held continuous employment
for 600 days or more. It is funded by contributions from the worker, employer, and the
government. Technically all workers should benefit from these arrangements. In practice
only formal sector workers do. The third measure is specifically designed to provide job loss
compensation for workers displaced by privatization. These are reviewed in some detail
below. As mentioned in section 7.2, the proposed changes in the Labour Law are meant to
match the regulatory environment in the EU and have implications for severance payments
and unemployment insurance.
Severance payments:
Labour Law no. 1475 requires the employer to compensate an employee who has qualified
for an indefinite contract for accumulated service in the event of death, voluntary termination
of employment (as a result of retirement, marriage [applies to females only], or military
service obligations [applies to males only]), or an involuntary discharge (unless it can prove
that the worker is at fault). Until the passage of the new Job Security legislation shortly
before the general elections, a worker who worked for at least a year without a written fixedterm contract was automatically granted an indefinite contract with the firm.105 Effective
March 2003, the indefinite contract will become effective after six months, BY>>> and
workers who are fired for reasons other than those allowed under the new law (no. 4773) will
qualify for additional compensation.106 This regulation affects establishments with 10 or
more workers.
Severance pay has two components: seniority payment [kıdem tazminatı], and (advanced)
notice payment [ihbar tazminatı]. Seniority payment is equal to a full month’s (30 days’)
salary for every year of service. The yearly amount cannot exceed the yearly retirement
bonus payable to the person in the highest level of civil service (currently the Undersecretary
of the Prime Minister). Notice payment covers wages payable to a worker for the period
stipulated under the advanced notice requirement, if the employer wants to fire the worker
immediately. Given the moral hazards of retaining a fired worker, employers typically pay
both components and terminate the relationship when they serve the notice.
The period of advanced notice, and hence the notice payment, is also a function of years of
service. If the employee has worked less than 6 months, then the period is 2 weeks; if tenure
is between six months and 1.5 years, then the period is 4 weeks; if tenure is between 1.5 and
3 years, then the period is 6 weeks; if tenure exceed 3 years, then period equals 8 weeks.
For example, for a worker with 20 years of service, severance pay consists of 20 months of
wages as seniority payment, and 8 weeks of wages as notice payment. In establishments
covered by collective bargaining agreements, both components can be raised in accordance
with the last agreement made between the employer and the union.
105
The notion of an indefinite contract applies to seasonal and part time workers as well.
The new law allows the worker fast track access to legal action. If the Court determines
that the worker has been wrongfully fired and the firm does not take her/him back, the new
law imposes a penalty of no less than 6, and nor more than 12 months of wages, plus up to 4
months of additional wages for compensation for the time it takes to finalize the legal
proceedings. In addition, compared to Labour Law no. 1475, the new Job Security law
expands the definition of mass dismissal, extends the job security benefits to journalists, and
includes additional protection for workers engaged in organizing activities on behalf of
unions.
106
83
If the worker initiates the separation, the law puts the burden of serving advanced notice on
the worker, and treats the employer as the harmed party. The law also stipulates the
conditions for immediate termination of the contract without severance payment.107
Unemployment Insurance:
The Unemployment Insurance (UI) System was established on 25 August 1999, upon
ratification of Law no. 4447. Collection of premiums commenced on 1 June 2000, and first
benefit payments were made in March 2002. The system caters to workers who are
registered to the Social Insurance Institution (SSK) and does not cover civil servants or the
self employed. Also included are foreigners working under reciprocity agreements. Benefits
are payable for a period of time. Payment duration depends on the length of employment and
the accumulated premium.
The system is designed as a group insurance policy for workers who lose their jobs
involuntarily and are not at fault.108 Premium contribution is calculated as a fraction of the
gross wage (used for determining the social security premium) and was originally set as 2
percent for the worker, 3 percent for the employer, plus an additional 2 percent that comes
from the State.109 Since the law requires the payment of at least 600 days of premiums in the
3 year period before becoming unemployed (as well as 120 days of continuous employment
and premium payment prior to the layoff) payments began in March 2002.
UI replacement rate equals 50 percent of the average daily wage calculated on the portion of
wages that qualify for the UI premium earned during the last four months before becoming
unemployed. However, the benefits cannot exceed the monthly net minimum wage in force.
The duration of payment is dependent on the number of days the premiums have been paid
(providing the requirement of 120 days of continuous employment and premium payment
prior to the layoff is met). Those who have paid premiums for 600 days in the last three years
receive benefits for 6 months, those who have paid up for 900 days in the last three years
receive benefits for 8 months and those who have paid up for 1080 days in the last three years
collect benefits for 10 months (1 month = 30 days). In addition to these payments, health and
maternity insurance coverage, job search help, vocational training, vocational development
and retraining services are provided to the unemployed. SSK is responsible for collecting the
unemployment insurance premiums. All other activities directed to the unemployed workers
are carried out by İŞKUR. The insurance fund is managed by a board consisting of
employee, employer and Treasury representatives, and is headed by the Director General of
İŞKUR.
İŞKUR Directorate estimates that some 5 million workers had social security coverage
through SSK as of 2002 and could in theory be contributing to the UI fund. The number of
workers collecting benefits was 5,710 in March 2002 (first month of the program) and rose
107
The reasons for immediate termination are collected under three main headings: (i) health
problems, (ii) violation of good will, immoral or dishonourable conduct, and (iii) force
majeur. The situation must render continuation of the contract impossible for one of the
parties involved (Sözer, 2001: 241-245).
108
Labour Law gives the employer the right to terminate the contract in case the worker
violates the good-will clause, or engages in immoral or dishonourable conduct. What
constitutes faulty conduct by the worker is exemplified, and similar actions may be sufficient
for termination (Sözer, 2001: 243).
109
As mentioned in section 2.3, in light of the negative employment consequences the 2001
economic crisis, premium contributions were reduced by one point in 2002 to provide
incentives for employment. The reduced rates will continue to apply in 2003.
84
steadily to 39,692 in October. These figures pale by comparison with the total number of
unemployed in Turkey (close to 2.4 million according to HLFS 2002: 3) and the unemployed
stock registered with İŞKUR (around 550 thousand in October 2002).
Job Loss Compensation:
In accordance with Law no. 4046 on the Regulation of Privatization Applications, displaced
workers in State Owned Enterprises are entitled to job loss compensation payable out of the
privatization fund, in addition to the severance payments. The amount of compensation and
other benefits depend on the service period and last month’s wages. The job loss
compensation equals 90 days of wages for those with up to 550 days of service, 120 days of
wages for those with up to 1100 days of service, 180 days of wages for those with up to 1650
days of service, and 240 days of wages for those with up to 2200 days of service. The
displaced workers register with İŞKUR, and their social security premiums are paid to SSK
for the stipulated periods. İŞKUR also provides services, such as help with finding a new
job, and training for occupational development and new skill acquisition. Between March
1995 and October 2002, job loss compensation was paid to 14,049 individuals.
8.2
Active labour market measures
During the past decade, targeted training programs directed to both non-employed and
employed individuals, accounted for the lion’s share of active labour market programs. Some
of these programs catered to the needs of self-employed individuals and start-up businesses.
Starting with the mid 90s, a number of direct measures aimed at increasing employment have
been implemented. Programs directed to dislocated workers of privatized SEEs were the first
to be put into operation. In 1998 programs that subsidize employment in the relatively
backward regions of the country were introduced. In 1999 temporary work programs were
initiated in areas affected by the August and November earthquakes. Following the economic
crisis in 2001, broader measures were adopted by the Government. The 2002 Budget Law
included a stipulation for lowering the contributions of the parties (workers, employers, and
the State) towards the UI system by one percent for the year 2002. The lower rates are
expected to be in effect in 2003. Law no. 4747 enacted in 2002 postponed the payment of
employer’s share of social security premiums for one year for every new worker employed.
Training programs:
As discussed in section 6.3 above, the vocational education and training system has a
continuing education and life-long learning component which is implemented by public and
private training institutions, İŞKUR, municipalities, foundations, NGOs and enterprises.
Apprenticeship training programs directed to the youth constitute the largest training activity
undertaken in Turkey. As pointed out earlier, the primary responsibility belongs to the
Ministry of National Education (MoNE). Professional organizations offer training in
occupational areas that fall outside the scope of the activities of the MoNE.
İŞKUR is specifically charged with the task of conducting training activities based on labour
market needs analysis. These have targeted youth, women, those who have lost their jobs,
those receiving unemployment allowance, the handicapped, and ex-convicts. The scope,
number, and target group of the training courses are established by Provincial Employment
Committees which include public and private representatives (see section 7.3).
Among the labour force training programs directed to the non-employed are the “employment
guaranteed training courses.” The courses are structured in partnership with public, private or
non-governmental organizations and İŞKUR procures the course services from them. The
courses are attended by the unemployed registered with İŞKUR. At least 60 percent of those
85
attending the courses have to be employed for a period of time by the partner organization.
Since 2001, in cooperation with the Ministry of Justice, İŞKUR has been implementing a
similar program targeting convicts who are close to being discharged. A different training
program implemented by İŞKUR focuses on courses that develop self employment skills. In
the last ten years approximately 96 thousand people have benefited from these two programs
(see Table 8.2.1).
Table 8.2.1. Labour Force Training Courses
YEARS
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002*
TOTAL
*Data as of the end of June.
Source: İŞKUR Directorate.
NUMBER OF COURSES
NUMBER OF PARTICIPANTS
470
628
841
1092
611
608
496
222
194
43
43
5.628
8.069
11.536
15.695
20.037
11.426
10.753
9.742
4.384
3.101
744
728
96.499
Approximately 8700 people received courses in a given year. On average there were 1.6
million unemployed individuals during this time. Thus 5 out of every 1000 unemployed
individuals benefited from this program.
In the last ten years, 3500 people have attended the training programs organized with the
specific aim of developing the occupational knowledge and skills of the handicapped. On
average 312 people were trained per year, 13 per course.
Labour force training courses are also offered to the employed. İŞKUR organizes worker
development seminars as well as first and middle level management courses. In seminars
which have been mostly held at manufacturing industry enterprises of the private sector, 24
thousand people have received training in the last ten years.
Temporary Public Works Programs:
Temporary Public Works Programs [Toplum Yararına Çalışma Programları] are designed to
alleviate employment consequences of shocks (natural disasters, economic crises, dislocation
due to privatization, etc.) by providing temporary employment (for a period not exceeding 6
months) to people in a target group. The jobs created by the program serve the affected
community. Funding has been provided by the World Bank. The programs are directed by
İŞKUR.
The first temporary work program (funded out of the Labour Adjustment Project [İşgücü
Uyum Projesi], a component of PIAL) targeted workers affected by privatization induced
layoffs and consisted of 36 projects involving 846 individuals. The second (funded out of the
Employment and Training Project [İşgücü Uyum Projesi]) was put into practice in 5
provinces (Sakarya, Bolu, Düzce, Yalova and Kocaeli) most affected by the earthquake
disasters of 17 August and 12 November 1999. In this context, 140 projects involving 4605
people were implemented. Additional programs (to be funded from the Privatization Social
Support Project) are being planned.
86
Programs directed at small businesses and own-account workers:
In Turkey individuals who work on their own account, and individuals who work in small
establishments that employ less than 10 workers comprise a large segment of the workforce.
Based on the 2000 HLFS, the shares were just under 57 percent in the case of males, and just
under 22 percent in the case of females. With this in mind, the Institute of Entrepreneurship
Development [Girişimciliği Geliştirme Enstitüsü] organized under KOSGEB administers a
number of programs for small businesses (see section 6.3.2).
Training and consulting: Training programs are designed to inform candidate entrepreneurs
on the practicalities of starting a business, such as carrying out a feasibility study and
preparing a business plan. Consulting services are provided to individual entrepreneurs to
help out with the preliminary research, case studies and analyses that yield individual
business plans. Financing for these support functions comes from World Bank funds (as part
of the Privatisation Social Support Project) and KOSGEB budget.
Business Incubators: Funds are available from the same sources towards the establishment of
business incubators for which the primary target group are the unemployed people.
Incubators provide office space, secretarial support, access to common equipment and
counselling. Using these funds, KOSGEB established a business incubator in Zonguldak.
KOSGEB has also established 10 technology incubators in different provinces of Turkey with
its own funds.
Young Entrepreneur Development Programme: The purpose of this program is to channel
university students into setting up their own businesses, thereby promoting a culture of
entrepreneurship at the universities. The program consists of training and
consulting
sessions, workshops, on the job training and enterprise panels. The speakers on the panels
are drawn from university professors, experienced entrepreneurs, bank managers and
KOSGEB staff. KOSGEB has provided 18,500 man-hours of training for groups from
different universities over the period 1999-2001.
Subsidised Employment Programs:
In order to provide incentives for employment, various laws have been enacted. Law no.
4325 dated 1998, which applies to newly employed workers at enterprises active in Regions
with Extraordinary Conditions (in the East and Southeast) and Development Priority
Provinces determined by the Council of Ministers, stipulates the payment of the employer’s
share of the social security premium from the State budget. In 2001 alone, employers
claimed this subsidy for 906,546 workers. Taken at face value, this figure suggests that
employers are extremely responsive to the subsidy, which reduces their wage costs by 21.527 percent (see section 2.3). On the other hand it is hard to believe that this many new jobs
got created during a deep recession, in regions which have lagged behind those in the west in
terms of output and per capita income.110
Law no. 4382 dated 1998, requires enterprises with 50 or more workers to employ 3
handicapped individuals and 3 ex-convicts per 100 employees. The law rewards enterprises
which exceed this quota by annulling the employers’ share of the social security premium,
and shifting the burden over to the State Budget. In 2001, a total of 2520 handicapped
individuals and ex-convicts benefited from this program.
110
According to HLFS 2001, the total number of wage and salary workers was around 10.2
million.
87
8.3
Public Employment Services
The Employment Organisation (İŞKUR), whose role in the reorganized State bureaucracy
was discussed in section 7.1, is charged with the responsibility of providing Public
Employment Services (PES). As pointed out in section 7.3, the governance structure of
İŞKUR signals acknowledgement of the multipartite nature of employment policy making.
İŞKUR has offices in all the provinces and coordinates its functions with Provincial
Employment Committees.
The main responsibilities of İŞKUR, as spelled out in the original decree are:
•
•
•
•
•
to help job-seekers to find jobs, and to help employers to find workers;
to provide job and career counselling services and training programs for improving job
search methods through vocational information centres;
to implement active labour market programs (in addition to usual training and
employment services);
to implement passive labour force programs (such as the unemployment insurance
system);
to regulate private employment agencies
A duty that İŞKUR inherited from İİBK has been the supervision of recruitment for the
public sector. Most people who register with İŞKUR (see section 3.7 above) still continue to
do so for this reason. The job brokerage role of İŞKUR for the private sector is limited. In
2001, İŞKUR processed 327,417 new job applications. It placed a total of 213,998
individuals, of which 70,108 (33 percent) went to the private sector.
Compared to its counterparts in the EU, İŞKUR has a small staff and few local offices. The
personnel ceiling set in the new draft law is 3100. However, because of current problems
over its legal status, İŞKUR is not allowed to recruit new staff. As of October 2002 the
organisation had a total of 1760 employees, in the general directorate located in Ankara, and
116 offices in 81 provinces. With the exception of the managerial staff recently hired for the
purpose of the reorganization and reorientation, most of the personnel of İŞKUR were
working in İİBK. The annual budget of İŞKUR was around US$16 million in 2001 and
US$20 million in 2002. The Government’s share was approximately 75 percent in 2001 and
83 percent in 2002.
Financial constraints prevent İŞKUR from broadening the reach of labour force training
programs. No additional resource allocation is made from the general budget for the
implementation of active labour market programs. As is, a very large fraction of the
budgetary allocation to İŞKUR goes to the payment of personnel wages (68 percent in 2001,
55 percent in 2002). The organization finances the training programs from its limited activity
income and using funds from foreign resources, especially the World Bank.111 The ebbs and
flows of foreign funding and support obtained from the private sector result in fluctuations in
the services (as exemplified in Table 8.2.1). Personnel shortages and insufficient technical
capacity emerge as additional constraining factors. For example, although İŞKUR faces no
financial constraints in tackling its responsibility for organizing training courses on
occupational acquirement and development as part of the UI system, it can only serve a
fraction of those who qualify with its existing personnel resources.
111
Between 1994 and 2000 World Bank financing to the tune of US$ 67.1 million was
secured through the Employment and Training Project (total budget US$ 107.5 million) and
US$ 250 million through the Privatization Social Support Project (total budget US$ 335.5
million).
88
8.4
Industrial policies
Two government documents, the Recommendations On National Employment Policy, which
contain the resolutions adopted during the 1st General Assembly of İŞKUR (23-24 May
2001), and the 8th Five-Year Development Plan (henceforth ‘the Plan’) provide information
on the main policy orientations. In what follows we highlight the proposals contained in
İŞKUR (2001), and include short discussions as appropriate, to elaborate and to reflect the
views of the State Planning Organization (SPO), the State agency in charge of developing
economic policy proposals, as stated in SPO (2000).
•
Employment will be at the centre of economic policies.
•
Employment creation in high productivity sectors is desirable. Investments should be
directed into high value added sectors, which use new technology.
•
Education policy and employment policy should be coordinated.
vocational education and training should be increased.
Investments in
SPO (2000, p. 96) underscores the rapid improvement of the quality of Turkey’s labour force
as the main component of the strategy to seek international competitiveness. SPO states that
the emphasis will be on allocating more resources, and effective utilization of these
resources, for the purposes of training the work force (p. 98). To this end, the Plan posits that
“investments and activities towards information technologies and mainly software, R&D and
development of technology, … improving small and medium size enterprises, provision of
qualified labour, creating employment, … reducing regional disparities shall be supported. In
supporting investments, the main objectives shall be adapting to changing domestic and
foreign market conditions … reduction of bureaucracy, establishing transparency … while
taking EU implementations into account.” (Unedited excerpt, p. 33.) The establishment of a
National Occupational Standards Board which will function under İŞKUR and oversee
occupational standards, education requirements, and certification procedures is a welcome
development for facilitating policy coordination aimed at improvement of the quality if the
workforce.
•
Payroll taxes should be reviewed and if possible reduced, barring negative consequences
for government’s finances.
The Plan recognizes the need for labour market flexibility and suggests social dialogue for
resolving differences on issues such as payroll taxes and changing the basic wage/fringe
benefits ratio to tie take-home pay to actual working hours (p. 255). To this end, the Plan
recommends taking the norms and standards of the ILO and the EU into consideration. The
link between high payroll taxes and low job creation in the formal sector is underscored in
position statements of employer associations.112 A related issue in the context of formal
employment is the post 1990 phenomenon of illegal foreign workers, which is seen as a
serious threat by labour union confederations.113 Also included on the list of employer
grievances are quotas for individuals with disabilities, ex-convicts and persons affected by
terrorism, and training obligations (see section 6.3.1 above).114 İŞKUR’s financial accounts
112
See, in particular, İşveren [Employer], the monthly publication of TİSK.
See Koç (1999), “Türkiye’de Yabancı Kaçak İşçilik” [Illegal Foreign Workers in Turkey],
http://www.turkis.org.tr/kacakisci.htm.
114
According to the 2002 General Census, 1.7 percent of those in the 15-54 age group have
disabilities. Data by age, sex, location, and nature of the disability are provided in Tables
A.8.4.1-A.8.4.6 in Annex 1.
113
89
reveal that many firms prefer to pay the financial penalties rather than abide by the various
quotas imposed on them by law.
•
Support for investments, employment generating, and productivity enhancing activities of
firms should be provided by removing the bureaucratic hurdles in front of investment and
formal employment.
•
Support for SMEs and entrepreneurs should be broadened.
Provision of investment incentives to SMEs has long been a staple of Turkey’s development
plans, with the specific aim of mitigation of regional inequality. The record attests to the
difficulties.115 The latest plan includes many references to this policy in various chapters on
investment, education, labour force, and vocational training. Furthermore it acknowledges
the need to reduce bureaucracy and states, “… amendments shall be made in financial
legislation and incentive system to enable the exemption of small-size projects from incentive
certificate requirements. Moreover, in order to reduce the bureaucracy further and helping
investors, certain procedures concerning investment incentive certificates shall be carried out
in the provinces of the investment.” (Unedited excerpt, p. 33.)
The programme of the new government does not signal any radical departures from the
liberal policy orientation that marked the post-1980 period. In particular the restructuring
that hinged on the privatization of the SEEs will continue, assuming buyers can be found. It
should be kept in mind that in the industrialization policies that remained in force until 1980,
the location of SEEs was viewed as an instrument for balancing regional and national
development concerns. If and when the pace of privatization increases, the regional
dimension of the employment problems that Turkey faces will require increased attention.
115
Statistics on regional inequality may be found in recent issues of the Human Development
Report for Turkey published by the UNDP.
90
9.
Summary and Conclusions
The year 2001 went into the record books as the year of the severest economic crisis in
Turkey since the 1950s, as the GNP plummeted by more than 10 percent. Over a period of
two years the number of unemployed individuals doubled, and exceeded 2.8 million during
the first quarter of 2003. The crash of 2001 came after a decade marked by moderate average
growth of about 3.5 percent per annum, and significant volatility caused by external events as
well as poor macroeconomic management. Starting with the Gulf War of 1991, economic
policy making abilities of governments were put to test in an increasingly global and restive
competitive environment. The home grown crisis of 1994, the fallout from the Asian and
Russian crises, and the earthquakes in 1999 exposed the fragility of the economy. Revived
concerns about sustainability of internal and external debt ushered in a stabilization and
inflation reduction program, which ran into trouble late in 2000. The distortions induced by
the exchange rate anchor proved unsustainable and the program ended abruptly with a major
devaluation and a floating Turkish Lira in February 2001.
Of the 32 that contested the general elections held on November 3rd, 2002, only two parties
were able to gain representation in the Parliament. Right-of-centre Justice and Development
Party [AKP], founded only 18 months ago, was swept to power with 34 percent of the
popular vote and 363 seats. Voters penalized political parties that participated in recent
governments by shutting them out of the Parliament.
Employment growth:
Data from the 1988-1998 period, the first decade for which reliable labour market data are
available, are useful in establishing how well the economy performed before the recent
shocks came. Between 1988 and 1998 total employment (of individuals aged 12 and above)
grew at the rate of 1.5 percent per annum, from about 19 million to about 22 million. During
this time the number of individuals between the ages of 20 to 54, the subpopulation from
which the bulk of the work force is drawn, grew by more than 3 percent per annum. Thus
employment growth engendered by moderate annual average growth rate of around 4 percent
proved inadequate for absorbing the prime-age population into the workforce.
It is instructive to compare the employment growth rate achieved over the 1988-1998 period
with that recorded during the period of restructuring. In 1975, when the industrialization
drive based on Import Substitution behind trade and exchange rate controls ran into trouble,
Turkey had a workforce (of age 12 and over) of 15.2 million (based on the 1975 General
Census). The next fifteen years marked the reorientation of the economy towards exports.
Based on the 1990 General Census, the workforce (of age 12 and over) stood at 23.4 million,
implying an average growth rate of 2.9 percent per annum during the transition period.
Census data fail to adjust for the seasonal nature of agricultural employment and
consequently overestimate the size of the workforce. As measured by the 1990 Household
Labour Force Surveys, the workforce in 1990 (of age 12 and over) was close to 19.3 million.
Using this and the biased census figure for 1975, we arrive at a conservative estimate of the
average employment growth rate, which turns out to be 1.6 percent per annum for the
transition period. The true growth rate was probably near the middle of the 1.6-2.9 range.
Role of macroeconomic stability:
These figures suggest that the employment creation capability of the Turkish economy did not
improve after restructuring. One might argue that this is not all that surprising, given the
volatility in the macroeconomic environment. Firstly, the inflation experience of the 90s, and
the behaviour of the exchange rate could easily be implicated as factors that hurt Turkey’s
91
export oriented policy. Secondly, a shaky banking sector and exorbitant real interest rates,
and exposure to the whims of short term international capital flows, did not provide an
environment conducive to investment.
Role of the State:
A third factor that needs to be addressed is the role of the institutional framework. In its
capacity as legislator, policy maker, and enforcer, the Government intervenes in the labour
market by setting the minimum wage, the retirement benefits of civil servants and others
covered by the publicly funded social security system, the thresholds and rates that apply to
social insurance premiums, the administrative fines that firms have to pay in case of
infringements of the labour law, and the benefit ceilings for workers who qualify for
severance pay and unemployment insurance. Labour market legislation and tax policies
together form a complex incentive structure, which can impact both household behaviour
(labour supply) and firm behaviour (labour demand). These need to be thoroughly researched
and understood, so that their compatibility with macroeconomic policy can be assessed. We
offer two pieces of evidence to help clarify the point.
Examination of the data on hours of work collected from workers in urban areas reveals a
secular increase except for those engaged in agriculture, who account for less than five
percent of the urban workforce. Between 1988 and 2001 weekly hours in manufacturing
increased by more than five for males, and more than six for females. It is tempting to
connect Turkey’s chronic employment creation troubles with the upward trend in actual hours
worked. The private sector has long been on record implicating high payroll taxes and
severance pay as impediments to hiring. Data suggest that employers respond to
uncertainties and fluctuations in demand by adjusting the intensive margin of work (hours),
rather than the extensive margin (employment).
Research on the informal economy around the World has identified the transaction costs of
setting up and running a business as hurdles that stand in the way of expansion of small
businesses in the formal sector. Thus the incentive structure can have an impact in ways that
are difficult to record in statistics.
Reorientation of labour market policy:
Despite the neo-liberal outlook of the post-1980 policy reorientation, old fashioned
employment protection appears to have been a shared goal of the coalitions that governed
Turkey in the 1990s. The failed stabilization (deficit reduction) attempts, slow progress of
privatization, and bloated public administration, are some of the more obvious pieces of
corroborating evidence. The lenient requirements for retirement with full pension payments
that remained in place until May 2002, and allowed the governments to extend the benefits of
employment to broader segments of the population, can be seen as an extension of this
policy. In fact severance pay for workers with indefinite employment contracts was the only
passive labour market instrument that was widely used in Turkey as of the end of 1998.
There is evidence that the State is ceding its role as the employer of last resort. The share of
the public sector in total wage and salary employment has been estimated at around 33
percent in 1990, 28 percent in 1996, and 12 percent in 1998. The shedding of the public
workforce has mainly been implemented by privatization of the State-owned Economic
Enterprises. Privatization has been on the agenda since the policy shift announced back in
1980. The impetus for privatization was renewed following the crisis in 1994 and a special
office known as the Privatization Administration was set up under the Prime Ministry.
This agency, together with İŞKUR, the State Employment Agency, has been implementing
programs directed at displaced workers of State-owned Economic Enterprises with various
92
skills and job experiences. Thorough evaluation of these programs is likely to offer
important lessons for the design of passive and active labor measures for broader segments
of the population.
Unemployment:
During the decade 1988-1998 the aggregate unemployment rate displayed a declining trend
around an average of about 7 percent, attaining the highest value of 9.1 percent in October
1993 and the lowest value of 6.2 percent in October 1996. It averaged 6.6 percent in 2000.
As the effects of the economic crisis of February 2001 spread, the unemployment rate
averaged 8.4 percent in 2001 and 10.3 percent in the following year. Compared to the same
quarter of the previous year, the number of unemployed individuals rose by 653 thousand in
the first quarter of 2002, by 650 thousand in the second, 466 thousand in the third, and by 301
thousand in the fourth. The total number of unemployed individuals, which was estimated to
be around 1.5 million in 2000 and 1.9 million in 2001, exceeded 2.6 million in the fourth
quarter of 2002.
Unemployment insurance:
The recently initiated unemployment insurance (UI) system covers around 5 million workers,
less than one out of four in the workforce. As of the third quarter of 2002, benefits were
being paid out to a tiny fraction of the unemployed (about 40,000 out of nearly 2.4 million).
The UI replacement rate equals the maximum of 50 percent of the average of the net wages
earned during the last four months before becoming unemployed, and the net minimum wage.
The system is designed as a group insurance policy. Workers draw benefits for 6, 8, or 10
months, depending on accumulated premiums. It appears that actuarial principles, rather than
information on unemployment spells were relied upon in determining the benefit durations.
For the UI system to function as a proper policy tool, the duration of benefits have to be
adjusted using labour market and macroeconomic indicators. In particular this requires
information on unemployment experiences of the unemployed, as well as the recently
employed workers. Presently this information is unavailable.
New legislation:
A new comprehensive labour law, designed to replace the existing Work Law (no. 1475) was
on the legislative agenda of the Parliament which was dissolved as a result of the elections in
November 2002. The draft legislation also included new job security regulations. This latter
part was enacted by the outgoing Parliament shortly before the recent elections despite strong
resistance from employer organizations and became effective as of March 2003.
In the draft report circulated prior to the seminar held in Ankara on February 27, 2003, we
pointed out that “All things equal, this is likely to increase the chances that recently hired
workers will be laid off before the security clauses become effective. Since recently hired
workers are either new entrants, or those who lost their jobs as a result of the 2001 crisis, the
policy is likely to hurt a vulnerable segment of the population.” According to the preliminary
estimates from the HLFS, both the unemployment rate, and the number of unemployed
individuals reached new peaks during the first quarter of 2003, respectively at 12.3 percent
and over 2.8 million. Even though the economy has been showing signs of recovery, the
number of unemployed individuals went up by 313 thousand compared to the first quarter in
2002, and by 155 thousand compared to the last quarter of 2002.
Social dialogue:
As of 2000, about 20 percent of the paid workforce was covered by collective bargaining
agreements. Although legislation passed in 2001 expanded representation and bargaining
93
rights of public sector employees, the law bars some civil servants from becoming union
members and forbids others from striking. There are over one hundred employee unions
active in the private sector, and over fifty in the public sector. A majority of these are
affiliated with one of three labour union confederations: TÜRKİŞ (the Confederation of
Turkish Trade Unions), DİSK (the Confederation of Revolutionary Trade Unions) and
HAKİŞ. On the employers’ side, twenty employer unions function under a single
confederation, TİSK (the Turkish Confederation of Employer Associations).
Concerns about regulation in general, and labour market regulation in particular, need to be
carefully addressed in devising employment policy. Although all three major labour union
confederations object to employers’ demands, the issue of labour market flexibility is firmly
on the short-term agenda. Job security, severance pay and unemployment insurance
provisions are likely to be affected. A compromise that balances the flexibility concerns of
establishments, against the job security concerns of unions and workers is likely. It is crucial
that the voices of those who are not members of employee and employer organisations, and
those who are yet to enter the labour market, are represented in the social dialogue.
The remainder of this summary identifies additional patterns and issues that need to be taken
into consideration as Turkey confronts the employment challenges of the 21st century.
Changes in the structure of employment:
According to the 1975 General Census, nearly 60 percent of the total workforce was
employed in agriculture, 14 percent in industry, about 5 percent in construction, and close to
22 percent in services. Following the liberalization of trade and exchange rate policies in the
1980s, the shares as reflected in the 1990 General Census were as follows: Around 54
percent in agriculture, 13 in industry, 5 percent in construction, and 28 percent in services.
As mentioned earlier, census data overestimate agricultural employment. According to the
1990 Household Labour Force Surveys, the shares were over 46 percent in agriculture,
around 15 in industry, 5 percent in construction, and 33 percent in services. The shift away
from agriculture continued throughout the 90s. As of 2000, a little more than 34 percent of
the workforce (of age 15 and over) was still in agriculture. Services had emerged as the new
leader, at over 40 percent. Industry accounted for around 18 percent and construction for 6
percent.
The development experiences of industrialized countries point out that employment growth
comes primarily from the expansion of the services sector, and to a limited extent from the
manufacturing sector. The evolution of the structure of employment in Turkey suggests a
similar pattern. However, concrete evidence is not available. We need better understanding
of where jobs are created – which sectors, for whom, by whom – and destroyed.
Wages:
The inflation experience of the 80s and beyond, coupled with changes in the political
environment, have translated into dramatic fluctuations in average real wages. The crash in
2001 that sent unemployment to record levels is likely to have had a major negative impact
on real wages. The decline in union power and the decline in the employment share of the
public sector have been implicated as forces that are likely to have increased wage inequality
during the 80s and 90s. Indeed there is evidence from micro data that wage dispersion
increased between late 80s and mid 90s, as a consequence of differential improvements in the
returns to education.
94
Demographic trends:
According to the General Census, Turkey’s population stood at 67.8 million in 2000.
Roughly two thirds of the population (65 percent) lived in urban locations with 20,000 or
more inhabitants. Between 1990 and 2000 the population grew at an average annual rate of
1.83 percent. The growth rate was 2.68 percent in urban areas and only 0.42 percent in rural
areas. The large difference between the two is attributable to rural-to-urban migration.
Most recent predictions indicate that the population of Turkey would stabilize somewhere
between 95 and 98 million by the middle of the 21st century. Examination of the evolution of
the age structure of the population in 1990 and beyond reveals a dramatic rise (from 44 to 52
percent by 2010) in the share of individuals between the ages of 20 and 54. The equally
dramatic fall (from 35 to 26 percent) in the share of the youth (0-14), combined with the
increasing (from 4 to 6 percent) but still small share of the elderly (65 and over), point at a
favourable dependency profile.
This presents opportunities, as well as challenges to the government. If employment
opportunities are forthcoming, a larger fraction of the population will be gainfully employed.
The tax base will most likely expand, and as a consequence public savings will increase.
Private savings might also increase. Even if the share of spending on education were to stay
constant as a proportion of the GDP, a deepening of educational resources will take place. As
a result, average quality of schooling is likely to improve. If adults have jobs, children will
stay in school longer, and can look forward to better labour market opportunities. As
employment expands the social security system will prosper, ensuring the elderly to generous
retirement and health benefits. On the other hand, if demand falls short of the potential
supply of able bodied individuals, at a minimum the productive potential of individuals will
go unrealized. Worse, unprecedented levels of unemployment, poverty, and social unrest
might lie ahead. Labour force participation rates that dipped under 50 percent in 2000 and
beyond (80 percent for urban males, 18 percent for urban females), and the recent surge in
unemployment, emerge as danger signs.
Urban (un)employment:
Between 1990 and 2000 the share of the employed in urban areas increased from 38 percent
to 45 percent. In the meantime the share of the urban population increased from about 59
percent to 65 percent, and the rural-urban differential in the employment ratio widened. In
urban areas the growth rate of employment during the pre-crisis period (1988-1998) was
more than double the national average, approaching 3.2 percent per annum. This faster
growth, coupled with the decline in the labour force participation rates of males residing in
urban areas, kept urban unemployment rates in check.
Between 1988 and 2000, the annual unemployment rate in urban areas of Turkey remained
fairly stable for males and has been on a declining trend for females. However, the recent
economic crisis has reversed these trends. Out of a labour force of nearly 11 million in 2001,
the number of unemployed in urban areas exceeded 1.4 million, around one million of whom
were males. The urban unemployment rate in 2001 was recorded as 16.8 percent for females,
10.3 for males, and 11.5 overall, having risen by nearly 3 percentage points from the previous
year in each case. The situation worsened in 2002.
Household Labour Force Surveys reveal that all, except people in their late careers were
affected by the 2001 crisis. Those in mid career (ages 35-54) were hit worse than others as
attested by the sharp increase in their share among the unemployed. This is a new and
alarming phenomenon, one which requires immediate attention.
95
Historically subsidies to small farms have helped sustain a large rural workforce and kept
urban unemployment at bay. With the removal of the subsidies, a new challenge emerges:
How to keep rural-urban migration and urban unemployment under check. Innovative ways
of solving urban infrastructure, housing and unemployment problems need to be sought.
Changes in the gender composition of employment:
Between 1988 and 1998, the share of females in total employment declined from 31 percent
to 29 percent while the absolute numbers increased at an average annual rate of 0.76 percent.
These figures conceal the changing role of women in the workforce. In fact, the share of
females working in urban areas increased from 19 percent to 27 percent of total female
employment. During this time the share of females among workers located in urban areas
increased from 15 percent to 18 percent, and the urban female work force registered a growth
rate of 4.8 percent per annum. Women turned to the marketplace in increasing numbers.
Among female workers in urban areas, the share of regular and casual wage and salary
workers increased from 75.1 percent to 82.3 percent.
The share of agriculture in female employment declined from around 77 percent in 1990 to
about 60 percent a decade later. Among females working in urban areas the share of
agriculture dropped from 15 percent in 1990 to 9 percent, while the share of services
increased from 39 percent to 64 percent. Manufacturing remained as the second most
important sector of employment for urban females as its share decreased from 31 percent to
26 percent in total.
Female concentration in services increased remarkably, as their employment share in the
service sectors increased from 13 to 17 percent. In 1990 female workers accounted for about
28 percent of the work force in commercial services and 19 percent of those in community
and personal services. Ten years later these figures were 30 percent and 27 percent
respectively. The share of females in manufacturing remained stable, around 18-19 percent.
Although they remained far from parity, females registered gains in white collar occupations.
In ten years their share among scientific and technical personnel and professionals, rose from
around 30 percent to 35, and among administrative personnel from around 32 percent to 37.
Female labour force participation:
The fact that a significant fraction of women stay out of the labour force during their
productive years, is of concern. There are many reasons for thinking that this situation is not
likely to last much longer. There is strong evidence that female participation rises sharply
with education, and educational attainment is improving. Consequently an increasing
fraction of the women in the young cohorts are expected to enter the labour market, and
remain attached after getting married. The reduction in fertility and increased use of labour
saving home appliances should reinforce this orientation. Finally, the increase in the
minimum legal age for retirement is likely to prolong attachment (for males, as well as
females).
Why female labour force participation rates in urban areas have remained flat despite these
favourable trends is a puzzle. Although a firm answer to the puzzle is yet to be found, some
clues are available. Urban unemployment rates which were considerably higher for women
than men up until the end of the 90s may have discouraged female participation. On a more
fundamental level, the volatility in real income experienced by many households during the
90s is likely to have dampened the demand for many services which employ women. A
similar argument applies to export oriented manufacturing jobs which are selective of women
(especially in textiles and apparel). These are at the mercy of global exchange rate
fluctuations. The data on hours of work suggests that the labour market in Turkey does not
96
offer the flexible working arrangements that have been credited for the dramatic rise in the
fraction of females in the workforces of the OECD countries. Last but certainly not the least,
the inadequacy of labour market legislation in addressing the needs of working women has
been implicated as a potential explanation.
Child labour:
Based on the Household Labour Force Survey, in 1999 there were 1 million 635 thousand
economically active children between the ages 6 and 17, amounting to 10.2 percent of those
in this broader age group and around 7 percent of the labour force. While young children in
the 6-11 age group accounted for 6.2 percent of the all working children, the shares of those
in the 12-14 and 15-17 age groups were respectively 25 and 68.8 percent of the total.
Agriculture by far is the most important sector at 57.6 percent, followed by 21.8 percent in
industry, 10.4 percent in services, and 10.2 percent in trade. Children who make monetary
contributions to the household budget are concentrated in households with the lowest income
levels.
Statistics reveal that incidence of child labour declined between 1994 and 1999. However,
patterns of utilization of child labour suggest that a regression may have taken place
following the crises. It is essential to administer the child module of the Household Labour
Force Survey at regular intervals to keep track of the changes and to look into the problem of
street children.
Human capital:
Having an educated and well-trained labour force emerges as a key factor for remaining
competitive in the global economy. Although significant improvements have taken place,
Turkey’s population is characterized by low levels of human capital (as measured by formal
schooling). Taking the non-institutional civilian population, 15 years or over, as our base, as
the 20th century came to a close, males on average had 6.8 years of education while females
had 5.3.
Starting with the 1998-99 school year, compulsory education has been extended to 8 years of
basic education. Law no. 4702 enacted in 2001 provides the framework for extending basic
education to 12 years. Since the 8+4 year structure calls for major curriculum reforms, its
implementation has been delayed. Students completing 8 years of (what now constitutes)
basic education have two schooling options: general secondary education, and vocational
and technical education. Although development plans drafted in the 1970s and beyond
placed the emphasis on vocational skills, and envisioned a share of 65 percent for the
vocational and technical component of the secondary school system, this target was not
reached. As of 2001, only one out of three students enrolled in secondary schools was
receiving vocational education.
By matching pre-market skills with the needs of the labour market, vocational school
education is expected to help the graduates ease their way into the labour market. Statistics
reveal that this is not happening – a significant majority continues with higher education.
According to the 2001 Household Labour Force Survey, of the 22.3 million strong work force
in Turkey, approximately 1.5 million (6.9 percent) were vocational and technical high school
graduates. Yet in year 2000 alone, a total of 220 thousand students graduated from secondary
vocational and technical education schools. This amounts to one potential labour market
entrant for every 7 employed vocational or technical high school graduate. Employment
would have had to expand by 1 percent in one year just to absorb all the vocational and
technical school graduates.
97
In 2001 while the nationwide unemployment rate was 8.5 percent, it reached 13.3 percent
among vocational and technical high school graduates, exceeding that for general high school
graduates. This suggests that high unemployment rates for vocational high school graduates
is discouraging participation, and encouraging further investments in education.
Unfortunately we do not have a good understanding of the school choice decisions of
secondary school candidates at this time. Also missing is information on the transition from
school to work.
In improving productivity, training obtained after completion of formal schooling, is
probably as important as education. Although Turkey has a vast and comprehensive system
of continuous (vocational and technical) training and adult education, it is difficult to gauge
the effectiveness of the system. The existing structure needs to be re-evaluated to assess
whether the delivery systems are able to respond to the needs of the new century.
Need for research:
As Turkey struggles with the challenges ahead, many open questions (only some which have
been identified in this summary) have to be addressed. This calls for a concerted effort and
the appropriate infrastructure. A component of the Employment and Training Project,
implemented jointly by several State agencies between 1993 and 2000, titled Labour Market
Information [Project] (LMIP) serves as an example of what can be achieved. This project
was used to upgrade data collection and dissemination capabilities of the State Institute of
Statistics. Notably the source used intensively for the purposes of this report, the Household
Labour Force Survey data base maintained on the web page of the Institute, was put together
as a result of LMIP. Between 1996 and 2000, the State Institute of Statistics published 31
volumes featuring 82 papers that address labour market issues and organized 12 seminars
which served as platforms of discussion of the research findings. If it were not for this body
of research, this report would have been full of gaping holes.
Data dissemination:
For research to be feasible, it is essential to have access to survey data which yield accurate
indicators of labour market performance. Thanks to the efforts of the State Institute of
Statistics, such data are collected and processed in a timely manner. However legal clauses
restrict data dissemination. These should be revised immediately, so that survey data can be
made available for the use of the broad community of domestic and international researchers,
without violating the confidentiality of the individuals and firms that provide the information.
The body of research produced under the Labour Market Information Project, which allowed
a small group of investigators access to such data, provides a sense of what can be achieved.
98
10.
Acknowledgments
I am grateful to the team members for living up to my expectations. Dr. Hakan Ercan wrote
the early drafts for Chapters 6 and 7, and Section 8.4. Dr. Cem Başlevent, Orgül Demet
Öztürk, and Ufuk Akçiğit authored or co-authored eight topical reports which provided the
detailed background information for Chapters 3-5 and Öztürk assembled the material for
Annex 3. İŞKUR staff provided a rough draft for Sections 8.1-8.3.
A report of this scope could not have been written without the input of many individuals
outside the team. In particular Prof. Tuncer Bulutay, Prof. Meltem Dayıoğlu-Tayfur, Bülent
Pir (Secretary General of the Turkish Confederation of Employers’ Associations), and Didem
Sezer and Enver Taştı from the State Institute of Statistics made extremely useful comments
and corrections. Prof. Aysıt Tansel helped resolve my concerns about the wage data used in
Chapter 2. Ufuk Güven from the Treasury compiled the data and information on the social
security system, and answered my seemingly endless questions. Murat Aydın, Meltem
Demirci and Arzu Yörükoğlu-Eratak from the State Institute of Statistics provided expert and
express response to my data and tabulation requests. In addition to providing detailed
information on İŞKUR’s activities, Eser Kayadelen and Elif Şahin from İŞKUR were
extremely helpful in locating documentation on Government legislation and related
regulations. Gülçin Ataklı edited Annexes 2 and 3, and helped with the references.
The draft report was presented and discussed at a seminar held in Ankara on February 17,
2002 and circulated widely by İŞKUR. In addition to invited representatives from the
European Commission, European Training Foundation and social partners, around 200
government officials, researchers, and representatives from NGOs and foreign embassies
attended the meeting. Many NGOs and State agencies provided written feedback. The list of
NGOs includes TESK (Turkish Confederation of Tradesmen and Artisans), TİSK (Turkish
Confederation of Employers’ Associations), TOBB (Turkish Union of Chambers of
Commerce and Bourses), and TÜRKİŞ (Confederation of Turkish Trade Unions). The list of
State agencies includes Director’s Offices of the Research, Planning and Coordination
Councils [Araştırma, Planlama ve Koordinasyon Kurulu Başkanlıkları] at the Ministries of
Education, Finance, Interior, Health, General Directorate of the Status and Problems of
Women [Kadın Statütüsü ve Sorunları Genel Müdürlüğü], Agency for Social Services and
Protection of Children [Sosyal Hizmetler ve Çocuk Esirgeme Kurumu], European Union
Coordination Department [Avrupa Birliği Koordinasyon Dairesi Başkanlığı] and General
Directorate of Work [Çalışma Genel Müdürlüğü] at the Ministry of Labour and Social
Security, General Directorate of External Relations and European Union Coordination [Dış
İlişkiler ve AT Koordinasyon Genel Müdürlüğü] at the Ministry of Culture, Undersecretariat
of the Treasury at the Prime Ministry [Başbakanlık Hazine Müsteşarlığı], and unidentified
offices from the Ministry of Tourism, and State Institute of Statistics.
I would like to underscore my gratitude for the time and energy some of the respondents put
into their written responses. Thanks to their dilligence, many factual mistakes (especially on
the institutional chapters of the report) were corrected. Suggestions concerning the content of
the report were incorporated to the degree possible, within the constraints imposed by the
outline provided by the European Training Foundation, and the need to offer a balanced
interpretation of the evidence.
Finally, I would like to acknowledge the enormous contributions of Prof. Dr. Tuncer Bulutay
to the subject matter, who assumed a key role in the Labour Market Information Project and
lead the effort to put labor economics on the agenda of policy makers and researchers.
İnsan Tunalı, June 27, 2003
99
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103
Annex 1. Supplementary Figures and Tables
Numbers that follow the prefix ‘A’ identify the relevant section in the report.
Explanation for Figures A.3.1.1-4, A.4.2.1-4, and A.5.3.1-4: Circles mark the data points
obtained from the biannual HLFS. The curves (smooth splines) have been added to capture
the trends. Starting with the upper-left panel and going rowwise, in the first three rows we
keep track of the youngest age group 12-14 (agegroup=1214), then 5-yr age groups, and
finally the oldest age group, 65 and above (agegroup=6599). The three panels in the last row
are for aggregate age groups 12 and above, 15 and above, and 20 and above respectively.
Explanation for Tables A.8.4.1-6: These have been prepared by the Population and Housing
Statistics Division [Nüfus ve Mesken İstatistikleri Şubesi] of the SIS.
104
Figure A.3.1.1. Employment ratios by age group, rural females, 1989-99
agegroup==1214
agegroup==1519
agegroup==2024
agegroup==2529
agegroup==3034
agegroup==3539
agegroup==4044
agegroup==4549
agegroup==5054
agegroup==5559
agegroup==6064
agegroup==6599
agegroup==12990
agegroup==15990
agegroup==20990
8990919293949596979899
100
8990919293949596979899
100
8990919293949596979899
100
.8
.6
.4
.2
0
.8
Employment ratio
.6
.4
.2
0
.8
.6
.4
.2
0
100
8990919293949596979899
.8
.6
.4
.2
0
Rural females, 1989-99
Figure A.3.1.2. Employment ratios by age group, urban females, 1989-99
agegroup==1214
agegroup==1519
agegroup==2024
agegroup==2529
agegroup==3034
agegroup==3539
agegroup==4044
agegroup==4549
agegroup==5054
agegroup==5559
agegroup==6064
agegroup==6599
agegroup==12990
agegroup==15990
agegroup==20990
8990919293949596979899
100
8990919293949596979899
100
8990919293949596979899
100
.2
.1
0
Employment ratio
.2
.1
0
.2
.1
0
.2
.1
0
Urban females, 1989-99
100
8990919293949596979899
105
Figure A.3.1.3. Employment ratios by age group, rural males, 1989-99
agegroup==1214
agegroup==1519
agegroup==2024
agegroup==2529
agegroup==3034
agegroup==3539
agegroup==4044
agegroup==4549
agegroup==5054
agegroup==5559
agegroup==6064
agegroup==6599
agegroup==12990
agegroup==15990
agegroup==20990
8990919293949596979899
100
8990919293949596979899
100
8990919293949596979899
100
1
.8
.6
.4
.2
1
Employment ratio
.8
.6
.4
.2
1
.8
.6
.4
.2
100
8990919293949596979899
1
.8
.6
.4
.2
Rural males, 1989-99
Figure A.3.1.4. Employment ratios by age group, urban males, 1989-99
agegroup==1214
agegroup==1519
agegroup==2024
agegroup==2529
agegroup==3034
agegroup==3539
agegroup==4044
agegroup==4549
agegroup==5054
agegroup==5559
agegroup==6064
agegroup==6599
agegroup==12990
agegroup==15990
agegroup==20990
100
8990919293949596979899
100
8990919293949596979899
100
8990919293949596979899
1
.5
0
Employment ratio
1
.5
0
1
.5
0
1
.5
0
Urban males, 1989-99
100
8990919293949596979899
106
Figure A.4.2.1. Labour force participation rates by age group, rural females, 1989-99
agegroup==1214
agegroup==1519
agegroup==2024
agegroup==2529
agegroup==3034
agegroup==3539
agegroup==4044
agegroup==4549
agegroup==5054
agegroup==5559
agegroup==6064
agegroup==6599
agegroup==12990
agegroup==15990
agegroup==20990
8990919293949596979899
100
8990919293949596979899
100
8990919293949596979899
100
.8
.6
.4
.2
0
.8
.6
.4
LFPR
.2
0
.8
.6
.4
.2
0
100
8990919293949596979899
.8
.6
.4
.2
0
Figure A.4.2.2. Labour force participation rates by age group, urban females, 1989-99
agegroup==1214
agegroup==1519
agegroup==2024
agegroup==2529
agegroup==3034
agegroup==3539
agegroup==4044
agegroup==4549
agegroup==5054
agegroup==5559
agegroup==6064
agegroup==6599
agegroup==12990
agegroup==15990
agegroup==20990
100
8990919293949596979899
100
8990919293949596979899
100
8990919293949596979899
.3
.2
.1
0
.3
.2
LFPR
.1
0
.3
.2
.1
0
.3
.2
.1
0
100
8990919293949596979899
107
Figure A.4.2.3. Labour force participation rates by age group, rural males, 1989-99
agegroup==1214
agegroup==1519
agegroup==2024
agegroup==2529
agegroup==3034
agegroup==3539
agegroup==4044
agegroup==4549
agegroup==5054
agegroup==5559
agegroup==6064
agegroup==6599
agegroup==12990
agegroup==15990
agegroup==20990
8990919293949596979899
100
8990919293949596979899
100
8990919293949596979899
100
1
.8
.6
.4
.2
1
.8
.6
LFPR
.4
.2
1
.8
.6
.4
.2
100
8990919293949596979899
1
.8
.6
.4
.2
Figure A.4.2.4. Labour force participation rates by age group, urban males, 1989-99
agegroup==1214
agegroup==1519
agegroup==2024
agegroup==2529
agegroup==3034
agegroup==3539
agegroup==4044
agegroup==4549
agegroup==5054
agegroup==5559
agegroup==6064
agegroup==6599
agegroup==12990
agegroup==15990
agegroup==20990
100
8990919293949596979899
100
8990919293949596979899
100
8990919293949596979899
1
.5
0
1
LFPR
.5
0
1
.5
0
1
.5
0
100
8990919293949596979899
108
Figure A.5.3.1. Unemployment rates by age group, rural females, 1989-99
agegroup==1214
agegroup==1519
agegroup==2024
agegroup==2529
agegroup==3034
agegroup==3539
agegroup==4044
agegroup==4549
agegroup==5054
agegroup==5559
agegroup==6064
agegroup==6599
agegroup==12990
agegroup==15990
agegroup==20990
8990919293949596979899
100
8990919293949596979899
100
8990919293949596979899
100
.15
.1
.05
0
Unemployment rate
.15
.1
.05
0
.15
.1
.05
0
100
8990919293949596979899
.15
.1
.05
0
Figure A.5.3.2. Unemployment rates by age group, urban females, 1989-99
agegroup==1214
agegroup==1519
agegroup==2024
agegroup==2529
agegroup==3034
agegroup==3539
agegroup==4044
agegroup==4549
agegroup==5054
agegroup==5559
agegroup==6064
agegroup==6599
agegroup==12990
agegroup==15990
agegroup==20990
100
8990919293949596979899
100
8990919293949596979899
100
8990919293949596979899
.6
.4
.2
0
Unemployment rate
.6
.4
.2
0
.6
.4
.2
0
.6
.4
.2
0
100
8990919293949596979899
109
Figure A.5.3.3. Unemployment rates by age group, rural males, 1989-99
agegroup==1214
agegroup==1519
agegroup==2024
agegroup==2529
agegroup==3034
agegroup==3539
agegroup==4044
agegroup==4549
agegroup==5054
agegroup==5559
agegroup==6064
agegroup==6599
agegroup==12990
agegroup==15990
agegroup==20990
8990919293949596979899
100
8990919293949596979899
100
8990919293949596979899
100
.2
.15
.1
.05
0
Unemployment rate
.2
.15
.1
.05
0
.2
.15
.1
.05
0
100
8990919293949596979899
.2
.15
.1
.05
0
Figure A.5.3.4. Unemployment rates by age group, urban males, 1989-99
agegroup==1214
agegroup==1519
agegroup==2024
agegroup==2529
agegroup==3034
agegroup==3539
agegroup==4044
agegroup==4549
agegroup==5054
agegroup==5559
agegroup==6064
agegroup==6599
agegroup==12990
agegroup==15990
agegroup==20990
100
8990919293949596979899
100
8990919293949596979899
100
8990919293949596979899
.3
.2
.1
0
Unemployment rate
.3
.2
.1
0
.3
.2
.1
0
.3
.2
.1
0
100
8990919293949596979899
110
Table A.8.4.1. Number of disabled individuals by age group, gender and type of disability, all Turkey
Type of disability
Age
group
Total
Population
Total
number
of disabled
Disability
of seeing
Disability
of hearing
Disability
of speaking
Physical
disability
Mental
disability
Total
0-4
5-9
10-14
15-19
20-24
25-29
30-34
35-39
40-44
45-49
50-54
55-59
60-64
65+
Unknown
Male
0-4
5-9
10-14
15-19
20-24
25-29
30-34
35-39
67 803 927
6 584 822
6 756 617
6 878 656
7 209 475
6 690 146
5 895 255
5 009 655
4 854 387
4 068 756
3 368 769
2 717 349
2 058 422
1 829 288
3 858 949
23 381
34 346 735
3 396 690
3 485 746
3 570 657
3 691 218
3 426 714
2 976 430
2 552 370
2 453 579
1 234 139
39 004
68 846
82 754
94 960
103 690
97 231
89 201
90 032
78 048
68 170
64 928
61 577
67 335
228 003
360
730 405
21 866
39 412
48 365
58 521
67 609
61 433
55 511
56 804
157 722
3 035
6 631
8 898
9 611
10 377
9 632
8 720
9 394
9 167
9 028
9 506
10 097
11 329
42 247
50
98 255
1 646
3 813
5 433
6 372
7 635
6 717
6 038
6 577
89 043
1 833
4 493
6 174
6 329
5 658
4 705
4 160
4 335
4 109
3 961
4 272
4 472
5 762
28 761
19
53 543
1 002
2 535
3 611
3 807
3 629
2 981
2 569
2 707
55 480
2 422
7 089
6 534
5 691
5 335
4 425
3 711
3 488
2 891
2 295
2 287
1 954
2 086
5 260
12
34 672
1 412
4 241
3 927
3 439
3 391
2 652
2 233
2 107
472 629
12 510
18 700
22 126
28 997
37 516
38 226
36 906
38 359
32 873
28 825
27 805
26 913
29 539
93 211
123
281 916
6 930
10 516
12 821
18 035
25 012
24 900
23 603
25 009
160 531
4 218
11 195
17 105
20 202
19 854
17 498
15 064
13 578
10 398
7 533
5 746
4 218
3 802
10 063
57
94 815
2 444
6 585
9 988
12 629
12 484
10 736
8 945
8 161
Other
More than
one
disability
Unknown
123 209
5 263
6 522
6 749
7 212
9 058
8 024
7 826
8 525
8 257
7 905
7 905
7 543
8 291
24 091
38
67 871
3 010
3 745
3 893
4 443
6 279
5 000
4 663
4 943
92 438
3 350
7 677
8 317
8 991
8 286
7 434
6 151
5 563
4 504
3 650
3 308
3 174
3 744
18 264
25
52 591
1 885
4 338
4 837
5 393
4 989
4 375
3 620
3 349
83 087
6 373
6 539
6 851
7 927
7 606
7 287
6 663
6 790
5 849
4 973
4 099
3 206
2 782
6 106
36
46 742
3 537
3 639
3 855
4 403
4 190
4 072
3 840
3 951
111
40-44
2 083 531
49 327
6 278
45-49
1 710 757
42 105
6 063
50-54
1 356 391
39 008
6 161
55-59
1 016 254
36 347
6 248
60-64
864 299
37 646
6 569
65+
1 749 563
116 230
22 676
Unknown
12 536
221
29
Female
33 457 192
503 734
59 467
0-4
3 188 132
17 138
1 389
5-9
3 270 871
29 434
2 818
10-14
3 307 999
34 389
3 465
15-19
3 518 257
36 439
3 239
20-24
3 263 432
36 081
2 742
25-29
2 918 825
35 798
2 915
30-34
2 457 285
33 690
2 682
35-39
2 400 808
33 228
2 817
40-44
1 985 225
28 721
2 889
45-49
1 658 012
26 065
2 965
50-54
1 360 958
25 920
3 345
55-59
1 042 168
25 230
3 849
60-64
964 989
29 689
4 760
65+
2 109 386
111 773
19 571
Unknown
10 845
139
21
Source: SIS, 2000 General Population Census.
2 628
2 428
2 687
2 797
3 466
16 686
10
35 500
831
1 958
2 563
2 522
2 029
1 724
1 591
1 628
1 481
1 533
1 585
1 675
2 296
12 075
9
1 829
1 492
1 514
1 391
1 471
3 565
8
20 808
1 010
2 848
2 607
2 252
1 944
1 773
1 478
1 381
1 062
803
773
563
615
1 695
4
21 595
18 532
17 126
16 016
16 404
45 339
78
190 713
5 580
8 184
9 305
10 962
12 504
13 326
13 303
13 350
11 278
10 293
10 679
10 897
13 135
47 872
45
6 322
4 419
3 220
2 381
1 971
4 490
40
65 716
1 774
4 610
7 117
7 573
7 370
6 762
6 119
5 417
4 076
3 114
2 526
1 837
1 831
5 573
17
4 602
4 162
4 031
3 817
4 048
11 218
17
55 338
2 253
2 777
2 856
2 769
2 779
3 024
3 163
3 582
3 655
3 743
3 874
3 726
4 243
12 873
21
2 699
2 108
1 924
1 832
2 171
9 053
18
39 847
1 465
3 339
3 480
3 598
3 297
3 059
2 531
2 214
1 805
1 542
1 384
1 342
1 573
9 211
7
3 374
2 901
2 345
1 865
1 546
3 203
21
36 345
2 836
2 900
2 996
3 524
3 416
3 215
2 823
2 839
2 475
2 072
1 754
1 341
1 236
2 903
15
112
Table A.8.4.2. Number of disabled individuals by age group, gender and type of disability, urban Turkey
Type of disability
Age
group
Total
Population
Total
number
of disabled
Disability
of seeing
Disability
of hearing
Disability
of speaking
Physical
disability
Mental
disability
Total
0-4
5-9
10-14
15-19
20-24
25-29
30-34
35-39
40-44
45-49
50-54
55-59
60-64
65+
Unknown
Male
0-4
5-9
10-14
15-19
20-24
25-29
30-34
35-39
40 172 156
3 746 195
3 874 330
3 961 757
4 330 747
4 213 438
3 745 403
3 174 031
3 062 896
2 559 694
2 067 148
1 569 755
1 100 806
911 882
1 841 510
12 564
20 398 786
1 930 537
1 996 261
2 064 371
2 265 614
2 168 387
1 887 707
1 605 993
1 535 231
677 282
22 721
39 464
46 508
53 152
59 596
55 505
50 949
51 684
44 917
38 691
35 167
31 911
33 729
113 100
188
401 347
12 798
22 645
27 595
33 346
39 324
35 390
31 955
32 831
81 089
1 693
3 724
4 903
5 450
6 021
5 602
5 082
5 396
5 111
4 975
4 915
5 039
5 254
17 898
26
50 609
931
2 119
3 002
3 654
4 435
3 958
3 539
3 801
47 968
1 104
2 775
3 824
3 890
3 509
2 833
2 387
2 478
2 423
2 224
2 270
2 229
2 682
13 329
11
28 634
593
1 549
2 255
2 403
2 270
1 806
1 494
1 550
28 082
1 239
3 923
3 394
2 912
2 705
2 287
1 779
1 750
1 421
1 148
1 092
919
976
2 533
4
17 828
733
2 386
2 090
1 777
1 773
1 398
1 123
1 076
264 146
7 167
10 266
11 869
16 059
21 987
22 521
21 989
23 058
19 665
16 801
15 297
14 050
15 017
48 338
62
158 120
3 933
5 786
7 031
10 328
14 982
14 821
14 098
15 136
82 462
2 649
6 668
9 795
11 183
10 500
8 593
7 149
6 231
4 854
3 449
2 546
1 911
1 653
5 254
27
48 768
1 551
3 899
5 801
6 959
6 611
5 347
4 301
3 770
Other
More than
one
disability
Unknown
75 756
3 299
3 964
4 069
4 249
5 756
5 111
5 074
5 541
5 376
5 120
4 897
4 435
4 830
14 009
26
42 123
1 895
2 303
2 386
2 722
4 011
3 208
3 063
3 228
47 465
1 893
4 272
4 644
4 582
4 282
3 807
3 193
2 872
2 326
1 838
1 664
1 526
1 861
8 693
12
26 955
1 094
2 413
2 728
2 770
2 580
2 224
1 900
1 773
50 314
3 677
3 872
4 010
4 827
4 836
4 751
4 296
4 358
3 741
3 136
2 486
1 802
1 456
3 046
20
28 310
2 068
2 190
2 302
2 733
2 662
2 628
2 437
2 497
113
40-44
1 305 933
28 605
3 557
45-49
1 057 477
24 054
3 360
50-54
796 035
21 219
3 199
55-59
550 964
18 730
3 049
60-64
427 641
18 554
2 977
65+
799 948
54 179
9 012
Unknown
6 687
122
16
Female
19 773 370
275 935
30 480
0-4
1 815 658
9 923
762
5-9
1 878 069
16 819
1 605
10-14
1 897 386
18 913
1 901
15-19
2 065 133
19 806
1 796
20-24
2 045 051
20 272
1 586
25-29
1 857 696
20 115
1 644
30-34
1 568 038
18 994
1 543
35-39
1 527 665
18 853
1 595
40-44
1 253 761
16 312
1 554
45-49
1 009 671
14 637
1 615
50-54
773 720
13 948
1 716
55-59
549 842
13 181
1 990
60-64
484 241
15 175
2 277
65+
1 041 562
58 921
8 886
Unknown
5 877
66
10
1 566
1 370
1 407
1 368
1 599
7 397
7
19 334
511
1 226
1 569
1 487
1 239
1 027
893
928
857
854
863
861
1 083
5 932
4
947
779
732
667
681
1 664
2
10 254
506
1 537
1 304
1 135
932
889
656
674
474
369
360
252
295
869
2
12 969
10 871
9 510
8 387
8 234
21 988
46
106 026
3 234
4 480
4 838
5 731
7 005
7 700
7 891
7 922
6 696
5 930
5 787
5 663
6 783
26 350
16
2 995
2 028
1 416
1 079
805
2 185
21
33 694
1 098
2 769
3 994
4 224
3 889
3 246
2 848
2 461
1 859
1 421
1 130
832
848
3 069
6
3 039
2 735
2 567
2 263
2 376
6 315
12
33 633
1 404
1 661
1 683
1 527
1 745
1 903
2 011
2 313
2 337
2 385
2 330
2 172
2 454
7 694
14
1 405
1 074
952
880
1 064
4 091
7
20 510
799
1 859
1 916
1 812
1 702
1 583
1 293
1 099
921
764
712
646
797
4 602
5
2 127
1 837
1 436
1 037
818
1 527
11
22 004
1 609
1 682
1 708
2 094
2 174
2 123
1 859
1 861
1 614
1 299
1 050
765
638
1 519
9
114
Table A.8.4.3. Number of disabled individuals by age group, gender and type of disability, rural Turkey
Type of disability
Age
group
Total
0-4
5-9
10-14
15-19
20-24
25-29
30-34
35-39
40-44
45-49
50-54
55-59
60-64
65+
Unknown
Male
0-4
5-9
10-14
15-19
20-24
25-29
30-34
35-39
Total
Population
Total
number
of disabled
Seeing
disability
Hearing
disability
Speaking
disability
Physical
disability
Mental
disability
27 631 771
2 838 627
2 882 287
2 916 899
2 878 728
2 476 708
2 149 852
1 835 624
1 791 491
1 509 062
1 301 621
1 147 594
957 616
917 406
2 017 439
10 817
13 947 949
1 466 153
1 489 485
1 506 286
1 425 604
1 258 327
1 088 723
946 377
918 348
556 857
16 283
29 382
36 246
41 808
44 094
41 726
38 252
38 348
33 131
29 479
29 761
29 666
33 606
114 903
172
329 058
9 068
16 767
20 770
25 175
28 285
26 043
23 556
23 973
76 633
1 342
2 907
3 995
4 161
4 356
4 030
3 638
3 998
4 056
4 053
4 591
5 058
6 075
24 349
24
47 646
715
1 694
2 431
2 718
3 200
2 759
2 499
2 776
41 075
729
1 718
2 350
2 439
2 149
1 872
1 773
1 857
1 686
1 737
2 002
2 243
3 080
15 432
8
24 909
409
986
1 356
1 404
1 359
1 175
1 075
1 157
27 398
1 183
3 166
3 140
2 779
2 630
2 138
1 932
1 738
1 470
1 147
1 195
1 035
1 110
2 727
8
16 844
679
1 855
1 837
1 662
1 618
1 254
1 110
1 031
208 483
5 343
8 434
10 257
12 938
15 529
15 705
14 917
15 301
13 208
12 024
12 508
12 863
14 522
44 873
61
123 796
2 997
4 730
5 790
7 707
10 030
10 079
9 505
9 873
78 069
1 569
4 527
7 310
9 019
9 354
8 905
7 915
7 347
5 544
4 084
3 200
2 307
2 149
4 809
30
46 047
893
2 686
4 187
5 670
5 873
5 389
4 644
4 391
Other
More than
one
disability
Unknown
47 453
1 964
2 558
2 680
2 963
3 302
2 913
2 752
2 984
2 881
2 785
3 008
3 108
3 461
10 082
12
25 748
1 115
1 442
1 507
1 721
2 268
1 792
1 600
1 715
44 973
1 457
3 405
3 673
4 409
4 004
3 627
2 958
2 691
2 178
1 812
1 644
1 648
1 883
9 571
13
25 636
791
1 925
2 109
2 623
2 409
2 151
1 720
1 576
32 773
2 696
2 667
2 841
3 100
2 770
2 536
2 367
2 432
2 108
1 837
1 613
1 404
1 326
3 060
16
18 432
1 469
1 449
1 553
1 670
1 528
1 444
1 403
1 454
115
40-44
45-49
50-54
55-59
60-64
65+
Unknown
Female
0-4
5-9
777 598
20 722
2 721
653 280
18 051
2 703
560 356
17 789
2 962
465 290
17 617
3 199
436 658
19 092
3 592
949 615
62 051
13 664
5 849
99
13
13 683 822
227 799
28 987
1 372 474
7 215
627
1 392 802
12 615
1 213
10-14
1 410 613
15 476
1 564
15-19
1 453 124
16 633
1 443
20-24
1 218 381
15 809
1 156
25-29
1 061 129
15 683
1 271
30-34
889 247
14 696
1 139
35-39
873 143
14 375
1 222
40-44
731 464
12 409
1 335
45-49
648 341
11 428
1 350
50-54
587 238
11 972
1 629
55-59
492 326
12 049
1 859
60-64
480 748
14 514
2 483
65+
1 067 824
52 852
10 685
Unknown
4 968
73
11
1 062
1 058
1 280
1 429
1 867
9 289
3
16 166
320
732
994
1 035
790
697
698
700
624
679
722
814
1 213
6 143
5
882
713
782
724
790
1 901
6
10 554
504
1 311
1 303
1 117
1 012
884
822
707
588
434
413
311
320
826
2
8 626
7 661
7 616
7 629
8 170
23 351
32
84 687
2 346
3 704
4 467
5 231
5 499
5 626
5 412
5 428
4 582
4 363
4 892
5 234
6 352
21 522
29
3 327
2 391
1 804
1 302
1 166
2 305
19
32 022
676
1 841
3 123
3 349
3 481
3 516
3 271
2 956
2 217
1 693
1 396
1 005
983
2 504
11
1 563
1 427
1 464
1 554
1 672
4 903
5
21 705
849
1 116
1 173
1 242
1 034
1 121
1 152
1 269
1 318
1 358
1 544
1 554
1 789
5 179
7
1 294
1 034
972
952
1 107
4 962
11
19 337
666
1 480
1 564
1 786
1 595
1 476
1 238
1 115
884
778
672
696
776
4 609
2
1 247
1 064
909
828
728
1 676
10
14 341
1 227
1 218
1 288
1 430
1 242
1 092
964
978
861
773
704
576
598
1 384
6
116
Table A.8.4.4. Population shares of individuals with disabilities broken down by type of
disability, by age group and gender, all Turkey
Share of
Share of disability type in age group (row %)
age group
in total Seeing Hearing Speaking Physical Mental
Multiple
Age
group (column %) disability disability disability disability disability Other disability Unknown
Total
1.8
12.8
7.2
0-4
0.6
7.8
4.7
5-9
1.0
9.6
6.5
10-14
1.2
10.8
7.5
15-19
1.3
10.1
6.7
20-24
1.5
10.0
5.5
25-29
1.6
9.9
4.8
30-34
1.8
9.8
4.7
35-39
1.9
10.4
4.8
40-44
1.9
11.7
5.3
45-49
2.0
13.2
5.8
50-54
2.4
14.6
6.6
55-59
3.0
16.4
7.3
60-64
3.7
16.8
8.6
65+
5.9
18.5
12.6
Unknown
1.5
13.9
5.3
Male
2.1
13.5
7.3
0-4
0.6
7.5
4.6
5-9
1.1
9.7
6.4
10-14
1.4
11.2
7.5
15-19
1.6
10.9
6.5
20-24
2.0
11.3
5.4
25-29
2.1
10.9
4.9
30-34
2.2
10.9
4.6
35-39
2.3
11.6
4.8
40-44
2.4
12.7
5.3
45-49
2.5
14.4
5.8
50-54
2.9
15.8
6.9
55-59
3.6
17.2
7.7
60-64
4.4
17.4
9.2
65+
6.6
19.5
14.4
Unknown
1.8
13.1
4.5
Female
1.5
11.8
7.0
0-4
0.5
8.1
4.8
5-9
0.9
9.6
6.7
10-14
1.0
10.1
7.5
15-19
1.0
8.9
6.9
20-24
1.1
7.6
5.6
25-29
1.2
8.1
4.8
30-34
1.4
8.0
4.7
35-39
1.4
8.5
4.9
40-44
1.4
10.1
5.2
45-49
1.6
11.4
5.9
50-54
1.9
12.9
6.1
55-59
2.4
15.3
6.6
60-64
3.1
16.0
7.7
65+
5.3
17.5
10.8
Unknown
1.3
15.1
6.5
4.5
6.2
10.3
7.9
6.0
5.1
4.6
4.2
3.9
3.7
3.4
3.5
3.2
3.1
2.3
3.3
4.7
6.5
10.8
8.1
5.9
5.0
4.3
4.0
3.7
3.7
3.5
3.9
3.8
3.9
3.1
3.6
4.1
5.9
9.7
7.6
6.2
5.4
5.0
4.4
4.2
3.7
3.1
3.0
2.2
2.1
1.5
2.9
38.3
32.1
27.2
26.7
30.5
36.2
39.3
41.4
42.6
42.1
42.3
42.8
43.7
43.9
40.9
34.2
38.6
31.7
26.7
26.5
30.8
37.0
40.5
42.5
44.0
43.8
44.0
43.9
44.1
43.6
39.0
35.3
37.9
32.6
27.8
27.1
30.1
34.7
37.2
39.5
40.2
39.3
39.5
41.2
43.2
44.2
42.8
32.4
13.0
10.8
16.3
20.7
21.3
19.1
18.0
16.9
15.1
13.3
11.1
8.8
6.8
5.6
4.4
15.8
13.0
11.2
16.7
20.7
21.6
18.5
17.5
16.1
14.4
12.8
10.5
8.3
6.6
5.2
3.9
18.1
13.0
10.4
15.7
20.7
20.8
20.4
18.9
18.2
16.3
14.2
11.9
9.7
7.3
6.2
5.0
12.2
10.0
13.5
9.5
8.2
7.6
8.7
8.3
8.8
9.5
10.6
11.6
12.2
12.2
12.3
10.6
10.6
9.3
13.8
9.5
8.0
7.6
9.3
8.1
8.4
8.7
9.3
9.9
10.3
10.5
10.8
9.7
7.7
11.0
13.1
9.4
8.3
7.6
7.7
8.4
9.4
10.8
12.7
14.4
14.9
14.8
14.3
11.5
15.1
7.5
8.6
11.2
10.1
9.5
8.0
7.6
6.9
6.2
5.8
5.4
5.1
5.2
5.6
8.0
6.9
7.2
8.6
11.0
10.0
9.2
7.4
7.1
6.5
5.9
5.5
5.0
4.9
5.0
5.8
7.8
8.1
7.9
8.5
11.3
10.1
9.9
9.1
8.5
7.5
6.7
6.3
5.9
5.3
5.3
5.3
8.2
5.0
6.7
16.3
9.5
8.3
8.3
7.3
7.5
7.5
7.5
7.5
7.3
6.3
5.2
4.1
2.7
10.0
6.4
16.2
9.2
8.0
7.5
6.2
6.6
6.9
7.0
6.8
6.9
6.0
5.1
4.1
2.8
9.5
7.2
16.5
9.9
8.7
9.7
9.5
9.0
8.4
8.5
8.6
7.9
6.8
5.3
4.2
2.6
10.8
117
disability, by age group and gender, urban Turkey
Age
group
Share of
age group
in total
(column %)
Seeing
disability
Hearing
disability
Speaking
disability
Physical
disability
Mental
disability
Other
Multiple
disability
Unknown
Total
0-4
5-9
10-14
15-19
20-24
25-29
30-34
35-39
40-44
45-49
50-54
55-59
60-64
65+
Unknown
Male
0-4
5-9
10-14
15-19
20-24
25-29
30-34
35-39
40-44
45-49
50-54
55-59
60-64
65+
Unknown
Female
0-4
5-9
10-14
15-19
20-24
25-29
30-34
35-39
40-44
1.7
0.6
1.0
1.2
1.2
1.4
1.5
1.6
1.7
1.8
1.9
2.2
2.9
3.7
6.1
1.5
2.0
0.7
1.1
1.3
1.5
1.8
1.9
2.0
2.1
2.2
2.3
2.7
3.4
4.3
6.8
1.8
1.4
0.5
0.9
1.0
1.0
1.0
1.1
1.2
1.2
1.3
12.0
7.5
9.4
10.5
10.3
10.1
10.1
10.0
10.4
11.4
12.9
14.0
15.8
15.6
15.8
13.8
12.6
7.3
9.4
10.9
11.0
11.3
11.2
11.1
11.6
12.4
14.0
15.1
16.3
16.0
16.6
13.1
11.0
7.7
9.5
10.1
9.1
7.8
8.2
8.1
8.5
9.5
7.1
4.9
7.0
8.2
7.3
5.9
5.1
4.7
4.8
5.4
5.7
6.5
7.0
8.0
11.8
5.9
7.1
4.6
6.8
8.2
7.2
5.8
5.1
4.7
4.7
5.5
5.7
6.6
7.3
8.6
13.7
5.7
7.0
5.1
7.3
8.3
7.5
6.1
5.1
4.7
4.9
5.3
4.1
5.5
9.9
7.3
5.5
4.5
4.1
3.5
3.4
3.2
3.0
3.1
2.9
2.9
2.2
2.1
4.4
5.7
10.5
7.6
5.3
4.5
4.0
3.5
3.3
3.3
3.2
3.4
3.6
3.7
3.1
1.6
3.7
5.1
9.1
6.9
5.7
4.6
4.4
3.5
3.6
2.9
39.0
31.5
26.0
25.5
30.2
36.9
40.6
43.2
44.6
43.8
43.4
43.5
44.0
44.5
42.7
33.0
39.4
30.7
25.6
25.5
31.0
38.1
41.9
44.1
46.1
45.3
45.2
44.8
44.8
44.4
40.6
37.7
38.4
32.6
26.6
25.6
28.9
34.6
38.3
41.5
42.0
41.0
12.2
11.7
16.9
21.1
21.0
17.6
15.5
14.0
12.1
10.8
8.9
7.2
6.0
4.9
4.6
14.4
12.2
12.1
17.2
21.0
20.9
16.8
15.1
13.5
11.5
10.5
8.4
6.7
5.8
4.3
4.0
17.2
12.2
11.1
16.5
21.1
21.3
19.2
16.1
15.0
13.1
11.4
11.2
14.5
10.0
8.7
8.0
9.7
9.2
10.0
10.7
12.0
13.2
13.9
13.9
14.3
12.4
13.8
10.5
14.8
10.2
8.6
8.2
10.2
9.1
9.6
9.8
10.6
11.4
12.1
12.1
12.8
11.7
9.8
12.2
14.1
9.9
8.9
7.7
8.6
9.5
10.6
12.3
14.3
7.0
8.3
10.8
10.0
8.6
7.2
6.9
6.3
5.6
5.2
4.8
4.7
4.8
5.5
7.7
6.4
6.7
8.5
10.7
9.9
8.3
6.6
6.3
5.9
5.4
4.9
4.5
4.5
4.7
5.7
7.6
5.7
7.4
8.1
11.1
10.1
9.1
8.4
7.9
6.8
5.8
5.6
7.4
16.2
9.8
8.6
9.1
8.1
8.6
8.4
8.4
8.3
8.1
7.1
5.6
4.3
2.7
10.6
7.1
16.2
9.7
8.3
8.2
6.8
7.4
7.6
7.6
7.4
7.6
6.8
5.5
4.4
2.8
9.0
8.0
16.2
10.0
9.0
10.6
10.7
10.6
9.8
9.9
9.9
118
45-49
1.4
11.0
5.8
50-54
1.8
12.3
6.2
55-59
2.4
15.1
6.5
60-64
3.1
15.0
7.1
65+
5.7
15.1
10.1
Unknown
1.1
15.2
6.1
2.5
2.6
1.9
1.9
1.5
3.0
40.5
41.5
43.0
44.7
44.7
24.2
9.7
8.1
6.3
5.6
5.2
9.1
16.3
16.7
16.5
16.2
13.1
21.2
5.2
5.1
4.9
5.3
7.8
7.6
8.9
7.5
5.8
4.2
2.6
13.6
119
disability, by age group and gender, rural Turkey
Age
group
Share of
age group
in total
(column %)
Seeing
disability
Hearing
disability
Speaking
disability
Physical
disability
Mental
disability
Other
Multiple
disability
Unknown
Total
0-4
5-9
10-14
15-19
20-24
25-29
30-34
35-39
40-44
45-49
50-54
55-59
60-64
65+
Unknown
Male
0-4
5-9
10-14
15-19
20-24
25-29
30-34
35-39
40-44
45-49
50-54
55-59
60-64
65+
Unknown
Female
0-4
5-9
10-14
15-19
20-24
25-29
30-34
35-39
2.0
0.6
1.0
1.2
1.5
1.8
1.9
2.1
2.1
2.2
2.3
2.6
3.1
3.7
5.7
1.6
2.4
0.6
1.1
1.4
1.8
2.2
2.4
2.5
2.6
2.7
2.8
3.2
3.8
4.4
6.5
1.7
1.7
0.5
0.9
1.1
1.1
1.3
1.5
1.7
1.6
13.8
8.2
9.9
11.0
10.0
9.9
9.7
9.5
10.4
12.2
13.7
15.4
17.0
18.1
21.2
14.0
14.5
7.9
10.1
11.7
10.8
11.3
10.6
10.6
11.6
13.1
15.0
16.7
18.2
18.8
22.0
13.1
12.7
8.7
9.6
10.1
8.7
7.3
8.1
7.8
8.5
7.4
4.5
5.8
6.5
5.8
4.9
4.5
4.6
4.8
5.1
5.9
6.7
7.6
9.2
13.4
4.7
7.6
4.5
5.9
6.5
5.6
4.8
4.5
4.6
4.8
5.1
5.9
7.2
8.1
9.8
15.0
3.0
7.1
4.4
5.8
6.4
6.2
5.0
4.4
4.7
4.9
4.9
7.3
10.8
8.7
6.6
6.0
5.1
5.1
4.5
4.4
3.9
4.0
3.5
3.3
2.4
4.7
5.1
7.5
11.1
8.8
6.6
5.7
4.8
4.7
4.3
4.3
3.9
4.4
4.1
4.1
3.1
6.1
4.6
7.0
10.4
8.4
6.7
6.4
5.6
5.6
4.9
37.4
32.8
28.7
28.3
30.9
35.2
37.6
39.0
39.9
39.9
40.8
42.0
43.4
43.2
39.1
35.5
37.6
33.1
28.2
27.9
30.6
35.5
38.7
40.4
41.2
41.6
42.4
42.8
43.3
42.8
37.6
32.3
37.2
32.5
29.4
28.9
31.4
34.8
35.9
36.8
37.8
14.0
9.6
15.4
20.2
21.6
21.2
21.3
20.7
19.2
16.7
13.9
10.8
7.8
6.4
4.2
17.4
14.0
9.8
16.0
20.2
22.5
20.8
20.7
19.7
18.3
16.1
13.2
10.1
7.4
6.1
3.7
19.2
14.1
9.4
14.6
20.2
20.1
22.0
22.4
22.3
20.6
8.5
12.1
8.7
7.4
7.1
7.5
7.0
7.2
7.8
8.7
9.4
10.1
10.5
10.3
8.8
7.0
7.8
12.3
8.6
7.3
6.8
8.0
6.9
6.8
7.2
7.5
7.9
8.2
8.8
8.8
7.9
5.1
9.5
11.8
8.8
7.6
7.5
6.5
7.1
7.8
8.8
8.1
8.9
11.6
10.1
10.5
9.1
8.7
7.7
7.0
6.6
6.1
5.5
5.6
5.6
8.3
7.6
7.8
8.7
11.5
10.2
10.4
8.5
8.3
7.3
6.6
6.2
5.7
5.5
5.4
5.8
8.0
11.1
8.5
9.2
11.7
10.1
10.7
10.1
9.4
8.4
7.8
5.9
16.6
9.1
7.8
7.4
6.3
6.1
6.2
6.3
6.4
6.2
5.4
4.7
3.9
2.7
9.3
5.6
16.2
8.6
7.5
6.6
5.4
5.5
6.0
6.1
6.0
5.9
5.1
4.7
3.8
2.7
10.1
6.3
17.0
9.7
8.3
8.6
7.9
7.0
6.6
6.8
120
40-44
1.7
10.8
5.0
45-49
1.8
11.8
5.9
50-54
2.0
13.6
6.0
55-59
2.4
15.4
6.8
60-64
3.0
17.1
8.4
65+
4.9
20.2
11.6
Unknown
1.5
15.1
6.8
4.7
3.8
3.4
2.6
2.2
1.6
2.7
36.9
38.2
40.9
43.4
43.8
40.7
39.7
17.9
14.8
11.7
8.3
6.8
4.7
15.1
10.6
11.9
12.9
12.9
12.3
9.8
9.6
7.1
6.8
5.6
5.8
5.3
8.7
2.7
6.9
6.8
5.9
4.8
4.1
2.6
8.2
121
Annex 2. Glossary of Acronyms and Key Terms
A.
ATR
Average Tax Rate (Ortalama Vergi Oranı)
AKP
Adalet ve Kalkınma Partisi (Justice and Development Party)
B.
BK
Bağ-Kur; public social security organization for the self-employed
C.
CBA
Collective Bargaining Agreement (Toplu İş Sözleşmesi)
CEE
Central Entrance Exam (Öğrenci Seçme Sınavı)
CHP
Cumhuriyet Halk Partisi (Republican Peoples’ Party)
CPI
Consumer Price Index (Tüketici Fiyatları Endeksi)
D.
DIE
Devlet İstatistik Enstitüsü (State Institute of Statistics)
DİSK
Devrimci İşçi Sendikaları Konfederasyonu (The Confederation of
Revolutionary Trade Unions)
E.
EA
Economic Activity (İş kolu)
ES
Emekli Sandığı (Pension Fund)
ETF
European Training Foundation (Avrupa Eğitim Vakfı)
EU
European Union (Avrupa Birliği)
EU15
15 countries that belong to the European Union
G.
GD
General Directorate (Genel Müdürlük)
GDP
Gross Domestic Product (Gayri Safi Yurtiçi Hasıla)
GDSPW
General Directorate of the Status and Problems of Women (Kadın Statütüsü ve
Sorunları Genel Müdürlüğü)
GNP
Gross National Product (Gayrı Safi Milli Hasıla)
122
H.
HAKİŞ
Hak İş Sendikası; one of three major employee union confederations
HCES
Household Consumption Expenditure Survey (Hanehalkı Tüketim
Harcamaları Anketi)
HEC
Higher Education Council (Yüksek Öğretim Kurumu)
HIDS
Household Income Distribution Survey (Hanehalkı Gelir Dağılımı Anketi)
HIPS
Hacettepe Instititute of Population Studies (Hacettepe Üniversitesi Nüfus
Etüdleri Enstitüsü)
HLFS
Household Labor Force Survey (Hanehalkı İşgücü Anketi)
I.
ILO
International Labor Organization (Uluslararası İşgücü Organizasyonu)
IMF
International Monetary Fund (Uluslararası Para Fonu)
İ.
İİBK
İş ve İşçi Bulma Kurumu (Employment Brokerage Agency)
İNİŞEV
İnşaat İşçileri Eğitim Vakfı
İNTES
Türkiye İnşaat Sanayicileri İşveren Sendikası (Turkish Employers’
Association of Construction Industries)
İŞKUR
Türkiye İş Kurumu (Employment Agency)
K.
KESK
Kamu Emekçileri Sendikaları Konfederayonu (Confederation of Public
Employee Unions)
KOSGEB
Küçük ve Orta Ölçekli Sanayi Geliştirme ve Destekleme İdaresi Başkanlığı
(The Small and Medium Sized Enterprises Support Administration
Directorate)
L.
LFPR
Labor Force Participation Rate (İşgücü Katılım Oranı)
LMIP
Labor Market Information Project (İşgücü Piyasası Bilgilendirme Projesi)
M.
METARGEM Meslekî ve Teknik Eğitim Araştırma ve Geliştirme Merkezi (Vocational and
Technical Education Research and Development Centre)
MESS
Metal Sanayicileri Sendikası (Turkish Employers’ Association of Metal
Industries)
123
MEV
MESS Eğitim Vakfı (MESS Training Foundation)
MLSS
Ministry of Labour and Social Security (Çalışma ve Sosyal Güvenlik
Bakanlığı)
MONE
Ministry of National Education (Milli Eğitim Bakanlığı)
N.
NFE&T
Non-Formal Education and Training (Yaygın Öğretim ve Eğitim)
NGOs
Non-Governmental Organizations (Sivil Toplum Örgütleri)
O.
OECD
Organization for Economic Cooperation and Development (Ekonomik
Kalkınma ve İşbirliği Teşkilatı)
ÖSYM
Öğrenci Seçme Yerleştirme Merkezi (Student Selection and Placement
Center)
P.
PA
Privatization Administration (Özelleştirme Dairesi Başkanlığı)
PES
Public Employment Services (Devlet İstihdam Hizmetleri)
PIAL
Privatization Implementation Assistance and Social Safety Net Project
(Özelleştirme ve Sosyal Güvenlik Ağı)
PSSP
Privatization Social Support Project (Özelleştirme Sosyal Destek Kredisi)
R.
rural
Location of residence has population below 20,000
S.
SEE
State-owned Economic Enterprises (Kamu İktisadi Teşekkülü)
SIS
State Institute of Statistics (Devlet İstatistik Enstitüsü); official data collection
agency in Turkey
SMEs
Small and Medium Sized Enterprises (Küçük ve Orta Büyüklükteki
İşletmeler)
SPD
State Personnel Department (Devlet Personel Başkanlığı)
SPO
State Planning Organization (Devlet Planlama Teşkilatı)
SSK
Sosyal Sigortalar Kurumu (Social Insurance Organization)
SSO
Social Security Organization (Sosyal Güvenlik Kurumu)
STC
Supra Training Centers (İşletmelerüstü Eğitim Merkezleri)
124
T.
TEKİŞ
Tüm Özel Eğitim Kurumları İşveren Sendikasi (All Private Training
Institutions Employers Union)
TESK
Türkiye Esnaf ve Sanatkarlar Konfederasyonu (Turkish Confederation of
Tradesmen and Artisans)
TFR
Total Fertility Rate (Toplam Doğurganlık Oranı)
THS
Technical High Schools (Teknik Liseler)
TİSK
Türkiye İşveren Sendikaları Konfederasyonu (The Turkish Confederation of
Employers’ Associations)
TOBB
Türkiye Odalar ve Borsalar Birliği (Turkish Union of Chambers of Commerce
and Bourses)
TUREM
Turizm Eğitim Merkezleri (Tourism Training Centers)
TÜRKİŞ
Türkiye İşçi Sendikaları Konfederasyonu (The Confederation of Turkish
Trade Unions)
TÜSİAD
Türk Sanayicileri ve İşadamları Derneği (Turkish Industrialists and
Businessmen Association)
TÜTSİS
Türkiye Tekstil İşverenleri Sendikası (Turkish Textile Employers’
Association)
TZOB
Türkiye Ziraat Odaları Birliği (Turkish Union of Chambers of Organization)
U.
UNDP
United Nations Development Programme (Birleşmiş Milletler Kalkınma
Programı)
urban
Location of residence has population of 20,000 or more
UI
Unemployment Insurance (İşsizlik Sigortası)
V.
VAT
Value Added Tax (Katma Değer Vergisi)
VE&T
Vocational Education and Training Council (Meslek Eğitim Kurulu)
VHS
Vocational High Schools (Meslek Liseleri)
VTC
Vocational Training Centers (Meslek Eğitim Merkezleri)
125
Y.
YOTEM
Yetişkinler Otelcilik ve Turizm Eğitim Merkezleri (Hotel and Tourism
Training Centers for Adults)
YÖK
Yüksek Öğretim Kurumu (Higher Education Council)
YURTKUR
Kredi ve Yurtlar Kurumu (Loan and Dorm Agency); oversees allocation of
student loans and dormitories
W.
WPI
Wholesale Price Index (Üretici Fiyat Endeksi)

Background Study on Labour Market and Employment in

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