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Education Mismatches in the Labor Markets and Their Impact on Wages across Sectors: Evidence from Turkey

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  • Anıl DUMAN

Abstract

The incidence of mismatch and its pay effects vary not only across countries but also across sectors due to different institutional arrangements. The first aim of the paper is to estimate education mismatches in the Turkish labor market. Our second aim is to distinguish the impact of education mismatches on wages in public and private sectors. The results of the analysis show returns on overeducation are lower than required education in both sectors similar to many other country examples. Moreover, we also show that wage differences between overeducation and required education are smaller in the private sector, and through Oaxaca decomposition method most of it can be explained by endowments. Lastly, the effect of undereducation on wages differs across sectors and we conclude that human capital model is not applicable to Turkish public sector.

Suggested Citation

  • Anıl DUMAN, 2018. "Education Mismatches in the Labor Markets and Their Impact on Wages across Sectors: Evidence from Turkey," Sosyoekonomi Journal, Sosyoekonomi Society, issue 26(37).
    • Handle: RePEc:sos:sosjrn:180313
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    Cited by:

    1. Zeynep Basak & Caner Ozdemir, 2023. "Underutilisation of Labour: Underemployment and Skills-Mismatch in Turkey," World Journal of Applied Economics, WERI-World Economic Research Institute, vol. 9(2), pages 125-148, December.

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    More about this item

    Keywords

    Education Mismatch; Wages; Public; Private Sector; Oaxaca Decomposition.;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education

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