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

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  • Aysit Tansel

    ()
    (Middle East Technical University and Economic Research Forum (ERF) Cairo, Egypt)

  • Fatma Bircan

    ()
    (Karaelmas 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, cohort effects, 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 Koc University-TUSIAD Economic Research Forum in its series Koç University-TUSIAD Economic Research Forum Working Papers with number 1102.

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Length: 31 pages
Date of creation: Feb 2011
Date of revision:
Handle: RePEc:koc:wpaper:1102

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Keywords: Wage Inequality; Returns to Education; Quantile Regression; Turkey;

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Citations

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Cited by:
  1. 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.
  2. 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.
  3. Aysit Tansel & Yousef Daoud, 2011. "Comparative Essay on Returns to Education in Palestine and Turkey," Working Papers 2011/7, Turkish Economic Association.
  4. Filiztekin, Alpay, 2011. "Education-occupation mismatch in Turkish labor market," MPRA Paper 35123, University Library of Munich, Germany.
  5. Bakis, Ozan & Polat, Sezgin, 2013. "Wage Inequality in Turkey: 2002-2010," GIAM Working Papers 13-9, Galatasaray University Economic Research Center.

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