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

Author

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  • Aysit Tansel

    (Middle East Technical University)

  • 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, 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.

Suggested Citation

  • Aysit Tansel & Fatma Bircan, 2011. "Wage Inequality and Returns to Education in Turkey: A Quantile Regression Analysis," Working Papers 2011/1, Turkish Economic Association.
  • Handle: RePEc:tek:wpaper:2011/1
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    File URL: http://www.tek.org.tr/dosyalar/TANSEL-BIRCAN.pdf
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    Cited by:

    1. Andini, Corrado, 2017. "Tertiary Education for All and Wage Inequality: Policy Insights from Quantile Regression," IZA Policy Papers 132, Institute for the Study of Labor (IZA).
    2. Aysit Tansel & Yousef Daoud, 2011. "Comparative Essays on Returns to Education in Palestine and Turkey," ERC Working Papers 1102, ERC - Economic Research Center, Middle East Technical University, revised May 2011.
    3. Bakis, Ozan & Polat, Sezgin, 2013. "Wage Inequality in Turkey: 2002-2010," GIAM Working Papers 13-9, Galatasaray University Economic Research Center.
    4. S Madheswaran, 2016. "The Changing Rates of Return to Education in India: Evidence from NSS Data," Working Papers id:11324, eSocialSciences.
    5. Aysit Tansel & Basak Dalgic & Aytekin Guven, 2014. "Wage Inequality and Wage Mobility in Turkey," Koç University-TUSIAD Economic Research Forum Working Papers 1419, Koc University-TUSIAD Economic Research Forum.
    6. Anuneeta Mitra, 2016. "Education and earning linkages of regular and casual workers in India: a quantile regression approach," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 18(1), pages 147-174, October.
    7. repec:bla:labour:v:31:y:2017:i:1:p:73-104 is not listed on IDEAS
    8. Andersson, Roland & Nabavi Larijani, Pardis & Wilhelmsson, Mats, 2013. "The impact of vocational education and training on income in Sweden," Working Paper Series 13/4, Royal Institute of Technology, Department of Real Estate and Construction Management & Centre for Banking and Finance (cefin).
    9. 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.
    10. Singhari, Smrutirekha & Madheswaran, S., 2016. "Changing rates of return to education in India: Evidence from NSS data," Working Papers 358, Institute for Social and Economic Change, Bangalore.
    11. Filiztekin, Alpay, 2011. "Education-occupation mismatch in Turkish labor market," MPRA Paper 35123, University Library of Munich, Germany.
    12. 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.
    13. Polat, Sezgin, 2016. "Some Economic Consequences of Higher Education Expansion in Turkey," MPRA Paper 72602, University Library of Munich, Germany.
    14. Lamichhane, Kamal & Watanabe, Takayuki, 2015. "The Effect of Disability and Gender on Returns to the Investment in Education: A Case from Metro Manilla of the Philippines," Working Papers 103, JICA Research Institute.
    15. William Miles & Samuel Schreyer, 2014. "Is monetary policy non-linear in Latin America? a quantile regression approach to Brazil, Chile, Mexico and Peru," Journal of Developing Areas, Tennessee State University, College of Business, vol. 48(2), pages 169-183, April-Jun.

    More about this item

    Keywords

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

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education

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