Title: Educational wage premia and wage inequality in Turkey

Authors: Oya Kent; Sinem Sefil-Tansever

Addresses: Istanbul Okan University, Turkey ' Istanbul Commerce University, Turkey

Abstract: This paper examines the effect of educational attainment on the male wage inequality in Turkey by employing Structure of Earnings Survey Micro Data compiled by TURKSTAT. We compare two years, namely 2006 and 2014, by estimating the Mincerian wage equation. Quantile regression method is utilised in order to explore the differentials in educational wage premia along the wage distribution. Our findings show that, despite the overall increase in the male wage inequality over the period, inequality declined at the top end of the wage distribution while displaying a significant increase at the bottom end. Education had a positive impact on both within and between groups inequality in both years. In general, educational wage premia in all education categories along the wage distribution increased, with two exceptions (vocational high school and higher education). Especially, in higher education category, educational wage premia have declined at the top half of the wage distribution while increased in lower quantiles.

Keywords: educational wage premia; EWP; wage inequality; quantile regression; Turkey.

DOI: 10.1504/GBER.2021.10038660

Global Business and Economics Review, 2021 Vol.24 No.4, pp.360 - 381

Received: 31 Aug 2020
Accepted: 20 Oct 2020

Published online: 23 Jun 2021 *

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