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

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Author Info
Aysit Tansel

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Abstract

There is no evidence on the extent of public versus private wage differentials in Turkey. The main objective of this paper is to examine the factors which explain the employment choice and the wage differentials in the 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 decomposition of the wage differentials between sectors for men and women are carried out. For this purpose, results of the 1994 Household Expenditure Survey conducted by the State Institute of Statistics are used. The results indicate that when controlled for observed characteristics and sample selection, for men, public administration wages are at parity or lower than private sector wages in particular at the university level. State Economic Enterprise wages for men are higher than private sector wages except at the university level. Opposite results are obtained for women: their wages are at par or higher in public administration than in the private sector. Further, while men's and women's wages are at parity in public administration, there is a large gender wage- gap in the private sector. Lower private returns to schooling are found in public than in the private sector.

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Paper provided by Economic Growth Center, Yale University in its series Working Papers with number 797.

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Length: 28 pages
Date of creation: Feb 1999
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Handle: RePEc:egc:wpaper:797

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Related research
Keywords: Public-Private Wages; gender; Turkey;

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Find related papers by JEL classification:
J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
J45 - Labor and Demographic Economics - - Particular Labor Markets - - - Public Sector Labor Markets
J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

References listed on IDEAS
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    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)
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  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)
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    Other versions:
  22. Psacharopoulos, George, 1994. "Returns to investment in education: A global update," World Development, Elsevier, vol. 22(9), pages 1325-1343, September. [Downloadable!] (restricted)
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  23. Niskanen, William A, 1975. "Bureaucrats and Politicians," Journal of Law & Economics, University of Chicago Press, vol. 18(3), pages 617-43, December.
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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. Aysit Tansel & Fatma Bircan, 2008. "Private Supplementary Tutoring in Turkey Recent Evidence on Its Various Aspects," ERC Working Papers 0802, ERC - Economic Research Center, Middle East Technical University, revised Apr 2008. [Downloadable!]
    Other versions:
  2. 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!]
  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. Aysit Tansel & Fatma Bircan, 2005. "Effect of Private Tutoring on University Entrance Examination Performance in Turkey," IZA Discussion Papers 1609, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  5. 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!]
  6. 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!]
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This page was last updated on 2009-11-26.

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