Increase of minimum wage in Turkey and its potential impacts

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The minimum wage in Turkey was raised by 30% as of January 2016, which represents a real increase of about 22% given the inflation level in 2015. While this measure is expected to increase the real income of a large part of the population, the impact on unemployment as well as on informality in the labour market remains to be seen.

Author: Fikret Adaman and Burcay Erus