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Public-Private Employment Choice, Wage Differentials, and Gender in Turkey

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Author Info
Tansel, Avsit

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Abstract

The main objective of this article is to examine the factors that explain the employment choice and the wage differentials in public administration, state-owned enterprises, and the formal private wage sector in Turkey. Selectivity-corrected wage equations are estimated for each sector for men and women separately. Oaxaca-Blinder decomposition of the wage differentials between sectors by gender and between men and women by sector are carried out. Results indicate that when controlled for observed characteristics and sample selection, for men public administration wages are higher than private sector wages except at the university level where the wages are at par. State-owned enterprise wages for men are higher than private sector wages. Similar results are obtained for women. Further, while the wages of men and women are at parity in the public administration, there is a large gender wage gap in the private sector in favor of men. Private returns to schooling are found to be lower in the noncompetitive public rather than in the competitive private sector.

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Publisher Info
Article provided by University of Chicago Press in its journal Economic Development and Cultural Change.

Volume (Year): 53 (2005)
Issue (Month): 2 (January)
Pages: 453-77
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Handle: RePEc:ucp:ecdecc:y:2005:v:53:i:2:p:453-77

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Christofides, Louis N. & Pashardes, Panos, 2002. "Self/paid-employment, public/private sector selection, and wage differentials," Labour Economics, Elsevier, vol. 9(6), pages 737-762, December. [Downloadable!] (restricted)
  2. Lassibille, Gerard, 1998. "Wage Gaps Between the Public and Private Sectors in Spain," Economics of Education Review, Elsevier, vol. 17(1), pages 83-92, February. [Downloadable!] (restricted)
  3. Terrell, Katherine, 1993. "Public-private wage differentials in Haiti Do public servants earn a rent?," Journal of Development Economics, Elsevier, vol. 42(2), pages 293-314, December. [Downloadable!] (restricted)
  4. Tansel, Aysit, 1994. "Wage employment, earnings and returns to schooling for men and women in Turkey," Economics of Education Review, Elsevier, vol. 13(4), pages 305-320. [Downloadable!] (restricted)
    Other versions:
  5. Ronald Oaxaca, . "Male-Female Wage Differentials in Urban Labor Markets," Working Papers 396, Princeton University, Department of Economics, Industrial Relations Section.. [Downloadable!]
    Other versions:
  6. Heckman, James J, 1974. "Shadow Prices, Market Wages, and Labor Supply," Econometrica, Econometric Society, vol. 42(4), pages 679-94, July. [Downloadable!] (restricted)
  7. Lee, Lung-Fei, 1983. "Generalized Econometric Models with Selectivity," Econometrica, Econometric Society, vol. 51(2), pages 507-12, March. [Downloadable!] (restricted)
  8. van der Gaag, Jacques & Vijverberg, Wim, 1988. "A Switching Regression Model for Wage Determinants in the Public and Private Sectors of a Developing Country," The Review of Economics and Statistics, MIT Press, vol. 70(2), pages 244-52, May. [Downloadable!] (restricted)
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  10. Jacob Mincer, 1958. "Investment in Human Capital and Personal Income Distribution," Journal of Political Economy, University of Chicago Press, vol. 66, pages 281. [Downloadable!] (restricted)
  11. Tansel, A., 1999. "Formal Versus Informal Sector Choice of Wage Earners and their Wages in Turkey," Papers 9927, Economic Research Forum.
  12. Idson, Todd L & Feaster, Daniel J, 1990. "A Selectivity Model of Employer-Size Wage Differentials," Journal of Labor Economics, University of Chicago Press, vol. 8(1), pages 99-122, January. [Downloadable!] (restricted)
  13. Schultz, T.P., 1990. "Testing The Neoclassical Model Of Family Labor Supply And Fertility," Papers 601, Yale - Economic Growth Center.
  14. Borjas, George J, 1980. "Wage Determination in the Federal Government: The Role of Constituents and Bureaucrats," Journal of Political Economy, University of Chicago Press, vol. 88(6), pages 1110-47, December. [Downloadable!] (restricted)
  15. Lee, Lung-Fei, 1982. "Some Approaches to the Correction of Selectivity Bias," Review of Economic Studies, Blackwell Publishing, vol. 49(3), pages 355-72, July. [Downloadable!] (restricted)
  16. Morley Gunderson, 1979. "Earnings Differentials between the Public and Private Sectors," Canadian Journal of Economics, Canadian Economics Association, vol. 12(2), pages 228-42, May. [Downloadable!] (restricted)
  17. Holmlund, Bertil, 1993. "Wage setting in private and public sectors in a model with endogenous government behavior," European Journal of Political Economy, Elsevier, vol. 9(2), pages 149-162, May. [Downloadable!] (restricted)
    Other versions:
  18. Gyourko, Joseph & Tracy, Joseph, 1988. "An Analysis of Public- and Private-Sector Wages Allowing for Endogenous Choices of Both Government and Union Status," Journal of Labor Economics, University of Chicago Press, vol. 6(2), pages 229-53, April. [Downloadable!] (restricted)
    Other versions:
  19. Tansel, A., 1998. "Self Employment, Wage Employment Choice & Returns to Education for Urban Men & Women in Turkey," Papers 9804, Economic Research Forum.
  20. Hartog, Joop & Oosterbeek, Hessel, 1993. "Public and private sector wages in the Netherlands," European Economic Review, Elsevier, vol. 37(1), pages 97-114, January. [Downloadable!] (restricted)
  21. Dustmann, Christian & van Soest, Arthur, 1998. "Public and private sector wages of male workers in Germany," European Economic Review, Elsevier, vol. 42(8), pages 1417-1441, September. [Downloadable!] (restricted)
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  22. Psacharopoulos, George, 1994. "Returns to investment in education: A global update," World Development, Elsevier, vol. 22(9), pages 1325-1343, September. [Downloadable!] (restricted)
    Other versions:
  23. Niskanen, William A, 1975. "Bureaucrats and Politicians," Journal of Law & Economics, University of Chicago Press, vol. 18(3), pages 617-43, December.
  24. Mueller, Richard E., 1998. "Public-private sector wage differentials in Canada: evidence from quantile regressions," Economics Letters, Elsevier, vol. 60(2), pages 229-235, August. [Downloadable!] (restricted)
  25. Assaad, Ragui, 1997. "The Effects of Public Sector Hiring and Compensation Policies on the Egyptian Labor Market," World Bank Economic Review, Oxford University Press, vol. 11(1), pages 85-118, January.
  26. Adamchik, Vera A. & Bedi, Arjun S., 2000. "Wage differentials between the public and the private sectors: evidence from an economy in transition," Labour Economics, Elsevier, vol. 7(2), pages 203-224, March. [Downloadable!] (restricted)
  27. Kanellopoulos, Costas N, 1997. "Public-Private Wage Differentials in Greece," Applied Economics, Taylor and Francis Journals, vol. 29(8), pages 1023-32, August. [Downloadable!] (restricted)
Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Nguyen Danh, Hoang Long, 2006. "Public-Private Sector Wage Differentials for Males and Females in Vietnam," MPRA Paper 6583, University Library of Munich, Germany. [Downloadable!]
  2. Aysit Tansel & Fatma Bircan, 2005. "Effect of Private Tutoring on University Entrance Examination Performance in Turkey," ERC Working Papers 0504, ERC - Economic Research Center, Middle East Technical University, revised Jun 2005. [Downloadable!]
    Other versions:
  3. Ina Ganguli & Katherine Terrell, 2005. "Wage Ceilings and Floors: The Gender Gap in Ukraine’s Transition," IZA Discussion Papers 1776, Institute for the Study of Labor (IZA). [Downloadable!]
  4. Juan Prieto Rodríguez & María José Suárez Fernández, 2006. "Like father like son? Intergenerational links within occupations and public employment," Hacienda Pública Española, IEF, vol. 178(3), pages 81-111, September. [Downloadable!]
  5. Aysit Tansel & Fatma Bircan, 2007. "Private Supplementary Tutoring in Turkey Recent Evidence on Its Various Aspects," Working Papers 2008/9, Turkish Economic Association. [Downloadable!]
    Other versions:
  6. Anos Casero, Paloma & Seshan, Ganesh, 2006. "Public-private sector wage differentials and returns to education in Djibouti," Policy Research Working Paper Series 3923, The World Bank. [Downloadable!]
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This page was last updated on 2009-11-16.

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