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Wage Inequality and Returns to Education in Turkey: A Quantile Regression Analysis

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  • Tansel, Aysit

    ()
    (Middle East Technical University)

  • Bircan, Fatma

    ()
    (Middle East Technical University)

Abstract

This paper investigates the male wage inequality and its evolution over the 1994-2002 period in Turkey by estimating Mincerian wage equations using OLS and quantile regression techniques. Male wage inequality is high in Turkey. While it declined at the lower end of the wage distribution it increased at the top end of wage distribution. Education contributed to higher wage inequality through both within and between dimensions. The within-groups inequality increased and between-groups inequality decreased over the study period. The latter factor may have dominated the former contributing to the observed decline in the male wage inequality over the 1994-2002. Further results are provided for the wage effects of experience, public sector employment, geographic location, firm size, industry of employment and their contribution to wage inequality. Recent increases in FDI inflows, openness to trade and global technological developments are discussed as contributing factors to the recent rising within-groups wage inequality.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 5417.

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Length: 32 pages
Date of creation: Dec 2010
Date of revision:
Publication status: published in: Review of Economic Development, 2012, 16 (1), 107-121
Handle: RePEc:iza:izadps:dp5417

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Keywords: quantile regression; wage inequality; returns to education; Turkey;

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References

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Citations

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Cited by:
  1. Aysit Tansel & Yousef Daoud, 2011. "Comparative Essay on Returns to Education in Palestine and Turkey," Working Papers 2011/7, Turkish Economic Association.
  2. Tushar Agrawal, 2011. "Returns to education in India: Some recent evidence," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2011-017, Indira Gandhi Institute of Development Research, Mumbai, India.
  3. Tien Manh Vu, 2013. "Is a gender gap in net school enrollment a reflection of the gender wage gap in the labor market? Evidence using household data from Vietnam," OSIPP Discussion Paper 13E001, Osaka School of International Public Policy, Osaka University.
  4. Bakis, Ozan & Polat, Sezgin, 2013. "Wage Inequality in Turkey: 2002-2010," GIAM Working Papers 13-9, Galatasaray University Economic Research Center.
  5. Filiztekin, Alpay, 2011. "Education-occupation mismatch in Turkish labor market," MPRA Paper 35123, University Library of Munich, Germany.

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