Informal workers face larger wage gaps in bigger firms, study finds.
Workers in larger companies are paid more than those in smaller ones, known as the "firm-size wage gap". In Turkey, this gap is bigger for informal jobs than formal ones. This is because taxes on formal jobs create a difference in wage gaps. Also, large companies offer higher wages for both formal and informal jobs, but the effect is more significant for formal jobs due to more applicants. This shows that social connections and job preferences play a role in job search and wage gaps.