Determinants of Expected Wages of Unemployed Workers in Turkey

Abstract

In this study, determinants of expected wages of unemployed individuals in Turkey have been analyzed. In addition to duration of unemployment, reservation wage, and previous wage, the effect of demographic and economic factors has also been studied. The data which were obtained from 1607 individuals who were included in a nationwide survey has been analyzed by the two stage least squares method. Our findings show that previous wage, age, the level of education, the number of foreign languages spoken, the number of job offers the individual receives, and whether the individual receives state assistance determine the expected wage. Obtained results are important because they show how individuals price the variables that determine their own productivities. In addition, our study sheds light on relationships between reservation wage, duration of unem ployment, previous wage, and expected wage within the context of Turkey.