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

Aysıt Tansel () and Fatma Bircan

No 1003, ERC Working Papers from ERC - Economic Research Center, Middle East Technical 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.

Keywords: Wage Inequality; Returns to Education; Quantile Regression; Turkey (search for similar items in EconPapers)
JEL-codes: I21 J23 J24 J31 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2010-12, Revised 2010-12
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://erc.metu.edu.tr/en/system/files/menu/series10/1003.pdf First version, 2010 (application/pdf)

Related works:
Journal Article: Wage Inequality and Returns to Education in Turkey: A Quantile Regression Analysis (2012)
Working Paper: Wage Inequality and Returns to Education in Turkey: A Quantile Regression Analysis (2011)
Working Paper: Wage Inequality and Returns to Education in Turkey: A Quantile Regression Analysis (2011)
Working Paper: Wage Inequality and Returns to Education in Turkey: A Quantile Regression Analysis (2010)
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