WAGE INEQUALITY IN TURKISH MANUFACTURING INDUSTRY

Abstract

Wage inequality is one of the most tempting field of labour economics. However, wage inequality studies, predominantly, remained limited to developed countries due to lack of data in developing countries. This study, using the Household Labour Force Surveys, aims at extending the time scope of previous researches conducted for the Turkish manufacturing sector and adding new dimensions simultaneously in terms of skill and technology levels besides utilizing the conventional dimension of education level. From this point of view, an eclectic approach applied to sketch the general picture of male wage inequality from 2004 to 2015 in the manufacturing sector by employing a generalized entropy-based inequality index, that is to say, the Theil index, which enables us to look at within – and between-group inequalities as well. One of the pattern found in this study is that within-group wage in qualities alleviated while between-group wage inequalities deteriorated over time. There were also significant changes in the employment structure in favor of white-collars, medium low technology industries, and better-educated workers except for regular high schooling.

Keywords

• Wage Inequality
• Wage Structure
• Manufacturing Industry

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