nep-ara New Economics Papers
on MENA - Middle East and North Africa
Issue of 2014‒11‒28
four papers chosen by
Paul Makdissi
Université d’Ottawa

  1. Wage Inequality And Wage Mobility In Turkey By Aysit Tansel; Başak Dalgıç; Aytekin Güven
  2. Does Diploma Type Matter for Subsequent Academic Achievement? A UAE Case Study By Kherfi, Samer; Naufal, George S
  3. Liquidity risk and contagion in interbank markets: a presentation of Allen and Gale Model By FERROUHI, El Mehdi; LEHADIRI, Abderrassoul

  1. By: Aysit Tansel (Department of Economics Middle East Technical University, Turkey); Başak Dalgıç (Department of Public Finance Hacettepe University, Turkey); Aytekin Güven (Department of Economics Abant İzzet Baysal University, Turkey)
    Abstract: This paper investigates wage inequality and wage mobility in Turkey using the Surveys on Income and Living Conditions (SILC). This is the first paper that explores wage mobility for Turkey. It differs from the existing literature by providing analyses of wage inequality and wage mobility over various socioeconomic groups such as gender, age, education and sector of economic activity. We first present an overview of the evolution of wages and wage inequality over the period 2005-2011. Next, we compute several measures of wage mobility and explore the link between wage inequality and wage mobility. Further, we compute the transition matrices which show movements of individuals across the wage distribution from one period to another and investigate the determinants of transition probabilities using a multinomial logit model. The results show that overall the real wages increased over the study period and wage inequality exhibits a slight increase.. Wage inequality is one of the highest among the European Union (EU) countries. The wage mobility in Turkey is lower than what is observed in the European Union countries although it increases as time horizon expands. Wage mobility has an equalizing impact on the wage distribution, however; this impact is not substantial enough to overcome the high and persistent wage inequality in Turkey.
    Date: 2014
  2. By: Kherfi, Samer (American University of Sharjah); Naufal, George S (Timberlake Consultants)
    Abstract: We examine how selected high school characteristics – including type of diploma – contribute to students' academic success in an American-type university in the United Arab Emirates (UAE). We find no robust evidence that US, UK, and UAE systems of high school diploma produce different outcomes, once we control for English proficiency. Irrespective of the type of diploma, high school grade is a strong positive predictor of future performance. We identify significant female, nationality, and family income effects. There is evidence that school ownership (private versus public) does not matter, and that graduates of coeducational schools perform better.
    Keywords: students' university performance, high school characteristics, diploma, UAE
    JEL: A20 I20
    Date: 2014–09
  3. By: FERROUHI, El Mehdi; LEHADIRI, Abderrassoul
    Abstract: The paper analyzes liquidity risk and contagion in interbank markets. The aim of the research is to define the different structures of interbank markets and structures that allow the better allocation of liquidity and thus avoid the spread of crisis in the whole system. For this purpose, this paper examines Allen and Gale model. This model is the pioneer model in the management of liquidity risk in the interbank market. We will then analyze the mechanisms that explain the spread of liquidity risk in the banking system both at national and international level.
    Keywords: liquidity, risk, interbank market, structure, Morocco, financial crisis
    JEL: G21 G32
    Date: 2013–02–21
  4. By: Gokce Uysal (Bahcesehir University Center for Economic and Social Research); Duygu Guner (Katholieke Universiteit Leuven)
    Abstract: Does culture affect female labor supply? In this paper, we address this question using a recent approach to measuring the effects of culture on economic outcomes, i.e. the epidemiological approach. We focus on migrants, who come from different cultures, but who share a common economic and institutional set-up today. Controlling for various individual characteristics including parental human capital as well as for current economic and institutional setup, we find that female employment rates in 1970 in a female migrant’s province of origin affects her labor supply behavior in 2008. We also show that it is the female employment rates and not male in the province of origin in 1970 that affects the current labor supply behavior. We also extend the epidemiological approach to analyze the effects of religion on female labor supply. More specifically, we use a proxy of parental religiosity, i.e. share of party votes in 1973 elections in Turkey to study female labor supply in 2008. Our findings indicate that female migrants from provinces that had larger (smaller) shares of the religious party votes in 1973 are less (more) likely to participate in the labor market in 2008. An extended model where both cultural and religiosity proxies are included shows that culture and religiosity have separately significant effects on female labor supply behavior.
    Date: 2014–04

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