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

Review of Economic Development, Forthcoming

30 Pages Posted: 2 Jan 2011 Last revised: 23 Apr 2011

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)

Fatma Bircan Bodur

Karaelmas University - Department of Economics

Multiple version iconThere are 3 versions of this paper

Date Written: 2005

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

JEL Classification: J31, J23, J24, I21

Suggested Citation

Tansel, Aysit and Bircan Bodur, Fatma, Wage Inequality and Returns to Education in Turkey: A Quantile Regression Analysis (2005). Review of Economic Development, Forthcoming . Available at SSRN: https://ssrn.com/abstract=1733106

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

Fatma Bircan Bodur

Karaelmas University - Department of Economics ( email )

Zonguldak, 6700
Turkey

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