Minimum Wage and Politics: Do the Elections Determine the Minimum Wage?


Kahveci M., PELEK S.

AMME IDARESI DERGISI, vol.54, no.1, pp.99-131, 2021 (Journal Indexed in SSCI) identifier

  • Publication Type: Article / Article
  • Volume: 54 Issue: 1
  • Publication Date: 2021
  • Title of Journal : AMME IDARESI DERGISI
  • Page Numbers: pp.99-131

Abstract

This study focuses on the relationship between minimum wage, which is a widely used labor market regulation across the world, and elections. Taking into consideration the minimum wage levels set by a tripartite commission, including workers',employers' and government's representatives, an econometric analysis is conducted to find out the impacts of the election periods on the minimum wage in Turkey. The theoretical framework of the study relies on the political business cycle literature. The determinants of real minimum wage changes between 1975 and 2019 are subjected to regression analysis. The findings suggest that election periods in Turkey is a statistically significant factor for real minimum wage increases.