An Investigation of Income and Substitution Effects on Female Labour Supply Through a Chaid Analysis: The Service Sector Case Specific to the Tr51 Region

Abstract

The aim of this study is to investigate factors affecting female labour supply and to study income effect and substitution effect which have a micro-economic significance for female labour supply in the factor market. To this end, the study used the data obtained from the TURKSTAT Household Labour Force Survey 2016 and performed a chi-squared automatic interaction detection (CHAID) analysis. The analysis results showed that working time in main job, working type, educational level, workplace, household income and social security are the most significant factors of the decision-making of single and married women who supply labour in the service sector.