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The Skill Wage Premium in the Turkish Labor Market from The Race Between Technology and Education Perspective

In: New Perspectives in Operations Research and Management Science

Author

Listed:
  • Bilge Eriş Dereli

    (Marmara University)

  • Narod Erkol

    (School of Advanced Vocational Studies, Banking and Insurance, İstanbul Bilgi University)

  • Haluk Levent

    (İstanbul Bilgi University)

  • Benan Zeki Orbay

    (İstanbul Bilgi University)

Abstract

In Turkey, a dramatic surge in the number of university graduates has increased the share of skilled labor in the workforce over the last two decades. This study aims to analyze the effects of this change on the skill wage premium by using Goldin and Katz’s (The race between education and technology. Belknap for Harvard University Press, 2008) framework in The Race between Education and Technology. In contrast with previous studies on developed economies, our results show that the skill wage premium is declining in Turkey, with the primary reasons being supply-related factors and the significant rise in the real minimum wage. This indicates that no significant change in the Turkish labor market’s skill demand in the 2004–2019 period originated from skill-biased technological change.

Suggested Citation

  • Bilge Eriş Dereli & Narod Erkol & Haluk Levent & Benan Zeki Orbay, 2022. "The Skill Wage Premium in the Turkish Labor Market from The Race Between Technology and Education Perspective," International Series in Operations Research & Management Science, in: Y. Ilker Topcu & Şule Önsel Ekici & Özgür Kabak & Emel Aktas & Özay Özaydın (ed.), New Perspectives in Operations Research and Management Science, pages 317-334, Springer.
    • Handle: RePEc:spr:isochp:978-3-030-91851-4_12
    DOI: 10.1007/978-3-030-91851-4_12
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