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DISCRIMINATION AGAINST WOMEN IN TURKISH LABOR MARKET: AN ANALYSIS OF GENDER WAGE GAP WITH BLINDER-OAXACA AND JUHN-MURPHY-PIERCE DECOMPOSITION METHODS, 2004-2017 PERIOD

Year 2018, , 349 - 358, 30.12.2018
https://doi.org/10.17261/Pressacademia.2018.1002

Abstract

Purpose - The average education level of female in the labor force is higher than the education level of their male counterparts in Turkey.

Since education level is the most important factor in the determination of wages, the average wage of female employees is expected to be

higher than that of male employees. However, the data shows the reverse. In this paper, the gender wage gap in the 2004-2017 period is

analyzed to understand what portion of the wage gap is due to discrimination and what portion is due to human capital factors. The

sample used in the econometric analysis is the Household Labor Force Survey microdata in the 2004-2017 period. Blinder-Oaxaca and Juhn-

Murphy-Pierce Decomposition methods are applied, and the results show that the gender wage gap in favor of male employees in the said

period cannot be explained by human capital differences, but by discrimination against women in the labor market.

Methodology - First wage equation regressions are set to see whether there is a difference between the effects and significance of

explanatory variables on wages of male employees and females. Then, Blinder Oaxaca and Juhn Murphy Pierce decomposition methods are

applied to see whether the wage gap can be explained by human capital differences or not.

Findings- Data shows that there is a gender wage gap in favor of men in Turkish labor market and a strong discrimination against women.

As for 2004, considering the human capital endowments, on average, women would have earned 5.2% more than what male employees

earn. However, data show that male employees earn 15.1% more than what female employees earn, which can be interpreted that female

employees have a wage-loss of about 20.3% due to discrimination. Both the wage gap and discrimination effects vary between regions.

Most industrialized/developed and regions with high agriculture share in employment are usually the ones with larger gap and higher

degree of discrimination. The wage gap and discrimination effects have declined until 2010, but they increased after that.

Conclusion- Gender wage gap and discrimination based loss in wages are seem to be persistent so far in Turkish labor market, but as the

average level of female employees increase the gap is expected to decline in long run.

References

  • Acker, J. (1991). Thinking about Wages: The gendered wage gap in Swedish banks. Gender and Society, Special Issue: Marxist Feminist Theory, 5 (3), 390-407.
  • Blinder, A. S. (1973). Wage discrimination: reduced form and structural estimates. The Journal of Human Resources, 8 (4), 436-455.
  • Burnette, J. (1997). An investigation of the female-male wage gap during the ındustrial revolution in Britain. The Economic History Review, New Series, 50 (2), 257-281.
  • Cohen, P. N. and Huffman, M. L. (2007). Working for the woman? Female managers and the gender wage gap. American Sociological Review, 72 (5), 681-704.
  • Filer, R. K. (1985). Male-female wage differences: the ımportance of compensating differentials. Industrial and Labor Relations Review, 38 (3), 426-437.
  • Hersch, J. and Stratton, L. (1997). Housework, fixed effects, and wages of married workers. The Journal of Human Resources, 32 (2), 285-307.
  • Juhn C., Murphy K. and Pierce B. (1991). Accounting for the slowdown in the black white wage convergence, in Kosters M. (Ed) Workers and their wages, 107-43, AEI Press.
  • Juhn C., Murphy K. and Pierce B. (1993). Wage inequality and the rise in returns to skill. Journal of Political Economy, 101 (3), 410-442.
  • Juhn, C., Rubinstein, Y. and Zuppann, C. (2015). The quantity-quality trade-off and the formation of cognitive and non-cognitive skills. NBER Workıng Paper Series, 1-46.
  • Kumlin, J. (2007). The sex wage gap in Japan and Sweden: the role of human capital, workplace sex composition, and family responsibility. European Sociological Review, 23 (2), 203-221.
  • McCall, L. (1998). Spatial routes to gender wage (ın)equality: regional restructuring and wage differentials by gender and education. Economic Geography, 74 (4), 379-404.
  • McCall, L. (2000). Gender and the new ınequality: explaining the college/non-college wage gap. American Sociological Review, 65 (2), 234-255.
  • Oaxaca, R. L. (1973). Male–female wage differentials in urban labor markets. International Economic Review, 14 (3), 693–709.
  • Oaxaca, R. L. (1975). Estimation of union/nonunion wage differentials within occupational/regional subgroups. The Journal of Human Resources, 10 (4), 529-537.
  • Pereira, J. and Galepo, A. (2007). Regional wage differantials: static and dynamic approaches. CEFAGE-UE Working Paper, 1-30.
  • Polavieja, J. G. (2005). Task specificity and the gender wage gap: theoretical considerations and empirical analysis of the Spanish Survey on Wage Structure. European Sociological Review, 21 (2), 165-181.
  • Wellington, A. J. (1993). Changes in the male/female wage gap, 1976-85. The Journal of Human Resources, 28 (2), 383-411.
  • Tarımsal işletmelerde ücret yapısı. (2014). Ankara: Türkiye İstatistik Kurumu.
  • Türkiye İstatistik Kurumu. İşgücü İstatistikleri, Kasım 2015. http://www.tuik.gov.tr/HbGetirHTML.do?id=21576 (Date of access 15.02.2016)
Year 2018, , 349 - 358, 30.12.2018
https://doi.org/10.17261/Pressacademia.2018.1002

Abstract

References

  • Acker, J. (1991). Thinking about Wages: The gendered wage gap in Swedish banks. Gender and Society, Special Issue: Marxist Feminist Theory, 5 (3), 390-407.
  • Blinder, A. S. (1973). Wage discrimination: reduced form and structural estimates. The Journal of Human Resources, 8 (4), 436-455.
  • Burnette, J. (1997). An investigation of the female-male wage gap during the ındustrial revolution in Britain. The Economic History Review, New Series, 50 (2), 257-281.
  • Cohen, P. N. and Huffman, M. L. (2007). Working for the woman? Female managers and the gender wage gap. American Sociological Review, 72 (5), 681-704.
  • Filer, R. K. (1985). Male-female wage differences: the ımportance of compensating differentials. Industrial and Labor Relations Review, 38 (3), 426-437.
  • Hersch, J. and Stratton, L. (1997). Housework, fixed effects, and wages of married workers. The Journal of Human Resources, 32 (2), 285-307.
  • Juhn C., Murphy K. and Pierce B. (1991). Accounting for the slowdown in the black white wage convergence, in Kosters M. (Ed) Workers and their wages, 107-43, AEI Press.
  • Juhn C., Murphy K. and Pierce B. (1993). Wage inequality and the rise in returns to skill. Journal of Political Economy, 101 (3), 410-442.
  • Juhn, C., Rubinstein, Y. and Zuppann, C. (2015). The quantity-quality trade-off and the formation of cognitive and non-cognitive skills. NBER Workıng Paper Series, 1-46.
  • Kumlin, J. (2007). The sex wage gap in Japan and Sweden: the role of human capital, workplace sex composition, and family responsibility. European Sociological Review, 23 (2), 203-221.
  • McCall, L. (1998). Spatial routes to gender wage (ın)equality: regional restructuring and wage differentials by gender and education. Economic Geography, 74 (4), 379-404.
  • McCall, L. (2000). Gender and the new ınequality: explaining the college/non-college wage gap. American Sociological Review, 65 (2), 234-255.
  • Oaxaca, R. L. (1973). Male–female wage differentials in urban labor markets. International Economic Review, 14 (3), 693–709.
  • Oaxaca, R. L. (1975). Estimation of union/nonunion wage differentials within occupational/regional subgroups. The Journal of Human Resources, 10 (4), 529-537.
  • Pereira, J. and Galepo, A. (2007). Regional wage differantials: static and dynamic approaches. CEFAGE-UE Working Paper, 1-30.
  • Polavieja, J. G. (2005). Task specificity and the gender wage gap: theoretical considerations and empirical analysis of the Spanish Survey on Wage Structure. European Sociological Review, 21 (2), 165-181.
  • Wellington, A. J. (1993). Changes in the male/female wage gap, 1976-85. The Journal of Human Resources, 28 (2), 383-411.
  • Tarımsal işletmelerde ücret yapısı. (2014). Ankara: Türkiye İstatistik Kurumu.
  • Türkiye İstatistik Kurumu. İşgücü İstatistikleri, Kasım 2015. http://www.tuik.gov.tr/HbGetirHTML.do?id=21576 (Date of access 15.02.2016)
There are 19 citations in total.

Details

Primary Language English
Journal Section Articles
Authors

Taylan Akgul 0000-0003-0753-8615

Publication Date December 30, 2018
Published in Issue Year 2018

Cite

APA Akgul, T. (2018). DISCRIMINATION AGAINST WOMEN IN TURKISH LABOR MARKET: AN ANALYSIS OF GENDER WAGE GAP WITH BLINDER-OAXACA AND JUHN-MURPHY-PIERCE DECOMPOSITION METHODS, 2004-2017 PERIOD. Journal of Economics Finance and Accounting, 5(4), 349-358. https://doi.org/10.17261/Pressacademia.2018.1002

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