Public-Private Employment Choice, Wage Differentials and Gender in Turkey

43 Pages Posted: 25 Aug 2004

See all articles by Aysit Tansel

Aysit Tansel

Middle East Technical University (METU) - Department of Economics; IZA Institute of Labor Economics; Economic Research Forum (ERF)

Date Written: August 2004

Abstract

The main objective of this paper is to examine the factors which explain the employment choice and the wage differentials in the public administration, state owned enterprises and the formal private wage sector in Turkey. Selectivity corrected wage equations are estimated for each sector for men and women separately. Oaxaca-Blinder decomposition of the wage differentials between sectors by gender and between men and women by sector are carried out. Results indicate that when controlled for observed characteristics and sample selection, for men, public administration wages are higher than private sector wages except at the university level where the wages are at par. State owned enterprise wages for men are higher than private sector wages. Similar results are obtained for women. Further, while wages of men and women are at parity in the public administration, there is a large gender wage-gap in the private sector in favor of men. Private returns to schooling are found to be lower in the noncompetitive public rather than in the competitive private sector.

Keywords: Public versus private sector, employment, Wages, Gender

JEL Classification: J45, J31, J16

Suggested Citation

Tansel, Aysit, Public-Private Employment Choice, Wage Differentials and Gender in Turkey (August 2004). Available at SSRN: https://ssrn.com/abstract=263470 or http://dx.doi.org/10.2139/ssrn.263470

Aysit Tansel (Contact Author)

Middle East Technical University (METU) - Department of Economics ( email )

Inonu Bulvari
Ankara 06800
Turkey
90 312 210 2073 (Phone)
90 312 210 7964 (Fax)

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Economic Research Forum (ERF) ( email )

21 Al-Sad Al-Aaly St.
(P.O. Box: 12311)
Dokki, Cairo
Egypt

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