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Public-private wage differentials in Turkey: public policy or market dynamics?

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  • Akarçay- Gürbüz, Ayça
  • Polat, Sezgin

Abstract

We evaluate public-private sector wage differentials in Turkey for the years 2005 and 2011, a period marked by educational upgrading and restructuring in public employment. Using micro data from Household Labour Force Surveys we find a positive premium for low wage earners and a penalty of working in the public sector at the higher end of the distribution. Although the penalty has not disappeared, the price effect has increased, especially at the end of the distribution owing to a relatively uneven wage increase in the private sector along the distribution, rather than an explicit public wage policy.

Suggested Citation

  • Akarçay- Gürbüz, Ayça & Polat, Sezgin, 2014. "Public-private wage differentials in Turkey: public policy or market dynamics?," MPRA Paper 60872, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:60872
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    More about this item

    Keywords

    employment; wage differentials; decomposition; quantile regression;

    JEL classification:

    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • 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

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