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Has the Effect of University Education on Wages Been Decreasing in Turkey?

Author

Listed:
  • Ulucan, Hakan

    (Pamukkale University)

  • Ciftci, Cemil

    (Pamukkale University)

Abstract

The main aim of this study is to present general development of wage inequalities in Turkey in the period from the second half of 2000s, and analyze the effects of significant rise of university education on wages. In this framework, Ordinary Least Squares and Quantile regression methods are conducted by using Household Labor Force surveys of Turkstat from 2007-2017 period. The primary findings of the study are: (i) the between the top ten percentile and the bottom ten percentile (90-10 wage ratio) decreases, (ii) The increases in the minimum wages converge lower wage groups the top, (iii) Quantitative increases in the university education lowers the effect of university education on wages. The last finding indicates that problems exist in qualitative side of university education despite increases in the quantitative side. Besides, the increases in the demand for educated labor fall behind those in supply inducing a negative pressure on wages of educated labor force. The findings of the study are very important for the policies aimed at structural transformation of Turkish economy.

Suggested Citation

  • Ulucan, Hakan & Ciftci, Cemil, 2019. "Has the Effect of University Education on Wages Been Decreasing in Turkey?," Business and Economics Research Journal, Uludag University, Faculty of Economics and Administrative Sciences, vol. 10(3), pages 649-669, May.
    • Handle: RePEc:ris:buecrj:0413
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    More about this item

    Keywords

    Wage Inequality; University Education; Education; Quantile Regression; Cross Sectional Analysis;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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