nep-cwa New Economics Papers
on Central and Western Asia
Issue of 2014‒12‒13
six papers chosen by
Christian Zimmermann
Federal Reserve Bank of St. Louis

  1. Wage Inequality and Wage Mobility in Turkey By Aysit Tansel; Basak Dalgic; Aytekin Guven
  2. Sometimes, Winners Lose: Economic Disparity and Indigenization in Kazakhstan By Gang, Ira N.; Schmillen, Achim
  3. A new estimation of the size of informal economy using monetary and full expenditures in a complete demand system By Armagan Tuna Aktuna Gunes; Christophe Starzec; François Gardes
  4. 2000 Families: identifying the research potential of an origins-of migration studies By Ayse Guveli; Harry Ganzeboom; Helen Baykara-Krumme; Lucinda Platt; Şebnem Eroğlu; Niels Spierings; Sait Bayrakdar; Efe K Sozeri; Bernhard Nauck
  5. СОХРАНИТ ЛИ ЭКОНОМИКА УЗБЕКИСТАНА ВЫСОКИЕ ТЕМПЫ РОСТА? СЦЕНАРИИ РАЗВИТИЯ В 2015-30гг. By Popov, Vladimir
  6. Can Uzbekistan Economy Retain Its High Growth Rates? Scenarios of Economic Development in 2015-30 By Popov, Vladimir

  1. By: Aysit Tansel (Department of Economics, Middle East Technical University, Institute for the Study of Labor (IZA) Bonn, Germany and Economic Research Forum (ERF) Cairo, Egypt); Basak Dalgic (Department of Public Finance Hacettepe University); Aytekin Guven (Department of Economics Abant İzzet Baysal University)
    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.
    Keywords: Wage Inequality, Wage Mobility, Heterogeneity, Turkey.
    JEL: D31 D63 J31 J60
    Date: 2014–11
    URL: http://d.repec.org/n?u=RePEc:koc:wpaper:1419&r=cwa
  2. By: Gang, Ira N. (Rutgers University); Schmillen, Achim (World Bank)
    Abstract: Several post-Soviet states have introduced policies to improve the relative economic, political or social position of formerly disadvantaged populations. Using one example of such policies – "Kazakhisation" in Kazakhstan – we investigate their impact on the comparative earnings of two directly affected groups, ethnic Russians and ethnic Kazakhs. Oaxaca decompositions show that Kazakhs are better endowed with income generating characteristics but receive lower returns to these characteristics than Russians. The second effect dominates and Kazakhs have comparatively lower average living standards. While "Kazakhisation" may have been successful in a narrow sense – i.e., by empowering Kazakhs to take on leading positions in the public sector – more broadly it has been a self-defeating policy as it has pushed ethnic Russians into jobs that often evolved into positions that (at least in monetary terms) are superior now to those held by Kazakhs.
    Keywords: ethnicity, decomposition, indigenization, Kazakhstan
    JEL: I32 O12 J15
    Date: 2014–09
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp8464&r=cwa
  3. By: Armagan Tuna Aktuna Gunes (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Paris I - Panthéon-Sorbonne, EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris); Christophe Starzec (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Paris I - Panthéon-Sorbonne, EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris); François Gardes (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Paris I - Panthéon-Sorbonne, EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris)
    Abstract: We use the demand system approach to estimate the size of informal economy in Turkey following the methodology based on the analysis of the individual consumption behaviour proposed by Pissarides, Weber (1989), Lyssiotou et al. (2004), and Fortin et al. (2009). We extend this method by taking into account both the monetary expenditures and time spent on domestic activities. The necessary information of money and time inputs in consumption on the household's level is obtained by statistical match of Turkish Family Budget and Time Use surveys (2006). As expected, the estimated model size of the informal economy in Turkey using the full (time plus money) expenditure is higher than those obtained by only monetary approach (in average 40.6% and 33.5% of GDP respectively) and also higher than obtained by more conventional macroeconomic methods (for example 35.1% by Schneider in 2005 with DYMIMIC model).
    Keywords: Informal economy; complete demand system; time use full expenditures
    Date: 2013–06
    URL: http://d.repec.org/n?u=RePEc:hal:journl:halshs-00841346&r=cwa
  4. By: Ayse Guveli (University of Essex); Harry Ganzeboom (Free University Amsterdam); Helen Baykara-Krumme (Chemnitz University of Technology); Lucinda Platt (London School of Economics and Political Science); Şebnem Eroğlu (University Bristol); Niels Spierings (Radboud University Nijmegen); Sait Bayrakdar (University of Essex); Efe K Sozeri (Free University Amsterdam); Bernhard Nauck (Chemnitz University of Technology)
    Abstract: Despite extensive recent advances in the empirical and theoretical study of migration, certain critical areas in the analysis of European migration remain relatively underdeveloped both theoretically and empirically. Specifically, we lack studies that both incorporate an origin comparison and trace processes of intergenerational transmission across migrants over multiple generations and incorporating family migration trajectories. This paper outlines the development, data and design of such a study, the 2000 Families study, framed within a theoretical perspective of ‘dissimilation’ from origins and over generations. We term the study an origins-of-migration study, in that it captures the country of origin, the family origins and potentially the originating causes of migration processes and outcomes. The resulting data comprised nearly 2,000 migrant and non-migrant Turkish families with members across three or more generations, covering. 50,000 individuals. We reflect on the potential of this study for migration research.
    Keywords: Migration, Europe, Turkey, dissimilation, intergenerational transmission, originsof-migration study
    URL: http://d.repec.org/n?u=RePEc:crm:wpaper:1435&r=cwa
  5. By: Popov, Vladimir
    Abstract: В последние 10 лет Узбекистан развивался очень успешно – рост ВВП в среднем на 8%, низкий государственный и внешний долг, заниженный валютный курс, равномерное распределение доходов, создание с нуля конкурентоспособной автопромышленности, ориентированной на экспорт. Задача на будущее – не допустить «головокружения от успехов», предусмотреть возможные риски и быть готовым принять адекватные меры. Рассматриваются два неблагоприятных шока – снижение цен на главные экспортные товары (золото, хлопок, газ) и замедление темпов роста совокупной факторной производительности, а также возможные ответные меры правительства. Обсуждается текущая промышленная политика – поддержка наряду с автомобильной промышленностью отраслей тяжелой химии (производство синтетического топлива и полипропиленовых изделий из газа) с относительно низким уровнем совокупной факторной производительности и темпами ее роста. ============================================================ Uzbekistan in recent 10 years is an extremely successful economy – high growth (8%), low domestic and international debt, undervalued exchange rate, relatively even distribution of income, creation from scratch competitive export oriented auto industry. It is important though to avoid “dizziness from success” and to envisage possible growth traps in the future. This paper discusses two unfavourable scenarios – negative terms of trade shock due to the decline in cotton, gas and gold prices (a deterioration of the current account balance by 10 p.p. of GDP) and a decline in growth rates of total factor productivity (TFP), as well as possible government responses to these shocks, in particular, changes in industrial policy. In recent years Uzbekistan promotes heavy chemistry industries (production of synthetic fuel and polypropylene goods from natural gas). This is the next stage of industrial policy after reaching food and energy self-sufficiency and successful auto industry development. There are reservations, however, against this strategy. First, gas production is about to decline due to depletion of reserves. Second, the level and growth rates of TFP in heavy chemistry are by far not the highest (they are the highest in light and food industry and in machine building). The increased share of heavy chemistry in total industrial output will cause the decline in the level and the growth rates of TFP. Third, auto industry is already a success, it may be reasonable to continue to support machine building industries of medium level of technology sophistication, like auto industry. For the country of the average size, export specialization in two major areas (autos and heavy chemistry) may be excessive.
    Keywords: Uzbekistan, scenarios of economic development in 2015-30,industrial policy, reaction to shocks, terms of trade, total factor productivity
    JEL: E60 F43 O40 O47 O53
    Date: 2014–05–05
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:59785&r=cwa
  6. By: Popov, Vladimir
    Abstract: Uzbekistan in recent 10 years is an extremely successful economy – high growth (8%), low domestic and international debt, undervalued exchange rate, relatively even distribution of income, creation from scratch competitive export oriented auto industry. It is important though to avoid “dizziness from success” and to envisage possible growth traps in the future. This paper discusses two unfavourable scenarios – negative terms of trade shock due to the decline in cotton, gas and gold prices (a deterioration of the current account balance by 10 p.p. of GDP) and a decline in growth rates of total factor productivity (TFP), as well as possible government responses to these shocks, in particular, changes in industrial policy. In recent years Uzbekistan promotes heavy chemistry industries (production of synthetic fuel and polypropylene goods from natural gas). This is the next stage of industrial policy after reaching food and energy self-sufficiency and successful auto industry development. There are reservations, however, against this strategy. First, gas production is about to decline due to depletion of reserves. Second, the level and growth rates of TFP in heavy chemistry are by far not the highest (they are the highest in light and food industry and in machine building). The increased share of heavy chemistry in total industrial output will cause the decline in the level and the growth rates of TFP. Third, auto industry is already a success, it may be reasonable to continue to support machine building industries of medium level of technology sophistication, like auto industry. For the country of the average size, export specialization in two major areas (autos and heavy chemistry) may be excessive.
    Keywords: Uzbekistan, scenarios of economic development in 2015-30,industrial policy, reaction to shocks, terms of trade, total factor productivity
    JEL: E60 F43 O40 O47 O53
    Date: 2014–05–05
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:59735&r=cwa

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