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WAGE INEQUALITY IN TURKISH MANUFACTURING INDUSTRY

Year 2021, , 129 - 145, 20.10.2021
https://doi.org/10.29228/JORE.7

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.

References

  • Aghion, P., Caroli, E. and Garcia-Penalosa, C. (1999). Inequality and economic growth: the perspective of the new growth theories. Journal of Economic Literature, 37(4), 1615-1660.
  • Aksoy, T. (2009). Technology and demand for skilled labor in Turkish private manufacturing industries. Panoeconomicus, 56(2), 261-279.
  • Aktaş, A. and Uysal, G. (2016). The gender wage gap in Turkey. Marmara Üniversitesi İktisadi ve İdari Bilimler Dergisi, 38(2), 1-19.
  • Bakış, O. and Polat, S. (2015). Wage inequality in Turkey, 2002–10. Economics of Transition, 23(1), 169-212.
  • Bozdoğan, A. (2021). Skill biased technical change and wage inequality: Evidence from Turkish manufacturing sector, [Unpublished PhD Dissertation]. Marmara University.
  • Chusseau, N., Dumont, M. and Hellier, J. (2008). Explaining rising inequality: Skill‐biased technical change and north–south trade. Journal of Economic Surveys, 22(3), 409-457.
  • Cowell, F. A. and Flachaire, E. (2015). Statistical Methods for Distributional Analysis. In: Atkinson, A.B., Bourguignon, F. (eds.) Handbook of Income Distribution, vol. 2A, (pp. 359-465). Amsterdam: Elsevier.
  • Daş, Z. Ö. and Doğruel, F. (2017). Wage inequality in Turkey: What changed during 1994-2011. Marmara Journal of Economics, 1(2), 171-194.
  • Dervişen, Z. D. (2011). Skilled and unskilled labor efficiencies in Turkish manufacturing industry (1992-2001), [Unpublished PhD Dissertation]. Marmara University.
  • DiNardo, J., Fortin, N. M. and Lemieux, T. (1996). Labor market institutions and the distribution of wages, 1973-1992: A semiparametric approach. Econometrica: Journal of the Econometric Society, 64(5), 1001-1044.
  • Dumont, M. (2006). The reliability–or lack thereof–of data on skills. Economics Letters, 93(3), 348-353.
  • Elveren, A. Y. and Galbraith, J. K. (2009). Pay inequality in Turkey in the neo-liberal era, 1980-2001. European Journal of Comparative Economics, 6(2), 177-206.
  • Eurostat (2019). Glossary: High-tech classification of manufacturing industries. (n.d.). Available at: https:// ec.europa.eu/eurostat/statistics-explained/index.php?title=Glossary:High-tech_classification_of_manufacturing_industries Access: 26.01.2021.
  • Förster, M. F. and Tóth, I. G. (2015). Cross-country evidence of the multiple causes of inequality changes in the OECD area. In: Atkinson, A.B., Bourguignon, F. (eds.) Handbook of Income Distribution, vol. 2B, (pp. 1729-1842). Amsterdam: Elsevier.
  • Filiztekin, A. (2020). Income Inequality in Turkey: 2003–2015. In: Parlar Dal. E. (eds.) Turkey’s Political Economy in the 21st Century, (pp. 63-84). Cham: Palgrave Macmillan.
  • Firpo, S., Fortin, N. M. and Lemieux, T. (2009). Unconditional quantile regressions. Econometrica, 77(3),953-973.
  • Hornstein, A., Krusell, P. and Violante, G. L. (2005). The effects of technical change on labor market inequalities. In: Aghion, P., Durlauf, S. (eds) Handbook of Economic Growth, vol. 1B. (pp. 1275-1370). Amsterdam: Elsevier.
  • İlkkaracan, I., Levent, H. and Polat, S. (2013). Exploring different measures of wage flexibility in a developing economy context: The case for Turkey. International Review of Applied Economics, 27(3), 297-315. Wage Inequality in Turkish Manufacturing Industry145
  • İlkkaracan, I. and Selim, R. (2007). The gender wage gap in the Turkish labor market. Labour, 21(3), 563-593.
  • International Labour Office (2012). International Standard Classification of Occupations: Structure, GroupDefinitions and Correspondence Tables. ISCO-08, vol.1. Available at:https://www.ilo.org/wcmsp5/groups/public/@dgreports/@dcomm/@publ/documents/publication/wcms_172572.pdf. Access: 26.01.2021.
  • International Labour Organization (2016). Global Wage Report 2016/2017: Wage inequality in the workplace. Available at: https://www.ilo.org/global/research/global-reports/global-wagereport/ 2016/WCMS_537846/lang—en/index.htm Access: 26.01.2021.
  • Kara, O. (2006). Occupational gender wage discrimination in Turkey. Journal of Economic Studies, 33(2), 130-143.
  • Katz, L. F. and Murphy, K. M. (1992). Changes in relative wages, 1963–1987: supply and demand factors. The Quarterly Journal of Economics, 107(1), 35-78.
  • Kent, O. and Sefil-Tansever, S. (2021). Educational wage premia and wage inequality in Turkey. Global Business and Economics Review, 24(4), 360-381.
  • Meschi, E., Taymaz, E. and Vivarelli, M. (2011). Trade, technology and skills: Evidence from Turkish microdata. Labour Economics, 18(1), 60-70.
  • Meschi, E., Taymaz, E. and Vivarelli, M. (2016). Globalization, technological change and labor demand: a firm-level analysis for Turkey. Review of World Economics, 152(4), 655-680.
  • Pelek, S. (2018). The impact of the minimum wage on the wage distribution: Evidence from Turkey. Ekonomi-Tek, 7(1), 17-59.
  • Popli, G. and Yılmaz, O. (2017). Educational attainment and wage inequality in Turkey. Labour, 31(1), 73-104.
  • Tansel, A. (2005). Public-private employment choice, wage differentials, and gender in Turkey. Economic Development and Cultural Change, 53(2), 453-477.
  • Tansel, A. and Bodur, F. B. (2012). Wage inequality and returns to education in Turkey: A quantile regression analysis. Review of Development Economics, 16(1), 107-121.
  • Tekgüç, H., Eryar, D. and Cindoğlu, D. (2017). Women’s tertiary education masks the gender wage gap in Turkey. Journal of Labor Research, 38(3), 360-386.
Year 2021, , 129 - 145, 20.10.2021
https://doi.org/10.29228/JORE.7

Abstract

References

  • Aghion, P., Caroli, E. and Garcia-Penalosa, C. (1999). Inequality and economic growth: the perspective of the new growth theories. Journal of Economic Literature, 37(4), 1615-1660.
  • Aksoy, T. (2009). Technology and demand for skilled labor in Turkish private manufacturing industries. Panoeconomicus, 56(2), 261-279.
  • Aktaş, A. and Uysal, G. (2016). The gender wage gap in Turkey. Marmara Üniversitesi İktisadi ve İdari Bilimler Dergisi, 38(2), 1-19.
  • Bakış, O. and Polat, S. (2015). Wage inequality in Turkey, 2002–10. Economics of Transition, 23(1), 169-212.
  • Bozdoğan, A. (2021). Skill biased technical change and wage inequality: Evidence from Turkish manufacturing sector, [Unpublished PhD Dissertation]. Marmara University.
  • Chusseau, N., Dumont, M. and Hellier, J. (2008). Explaining rising inequality: Skill‐biased technical change and north–south trade. Journal of Economic Surveys, 22(3), 409-457.
  • Cowell, F. A. and Flachaire, E. (2015). Statistical Methods for Distributional Analysis. In: Atkinson, A.B., Bourguignon, F. (eds.) Handbook of Income Distribution, vol. 2A, (pp. 359-465). Amsterdam: Elsevier.
  • Daş, Z. Ö. and Doğruel, F. (2017). Wage inequality in Turkey: What changed during 1994-2011. Marmara Journal of Economics, 1(2), 171-194.
  • Dervişen, Z. D. (2011). Skilled and unskilled labor efficiencies in Turkish manufacturing industry (1992-2001), [Unpublished PhD Dissertation]. Marmara University.
  • DiNardo, J., Fortin, N. M. and Lemieux, T. (1996). Labor market institutions and the distribution of wages, 1973-1992: A semiparametric approach. Econometrica: Journal of the Econometric Society, 64(5), 1001-1044.
  • Dumont, M. (2006). The reliability–or lack thereof–of data on skills. Economics Letters, 93(3), 348-353.
  • Elveren, A. Y. and Galbraith, J. K. (2009). Pay inequality in Turkey in the neo-liberal era, 1980-2001. European Journal of Comparative Economics, 6(2), 177-206.
  • Eurostat (2019). Glossary: High-tech classification of manufacturing industries. (n.d.). Available at: https:// ec.europa.eu/eurostat/statistics-explained/index.php?title=Glossary:High-tech_classification_of_manufacturing_industries Access: 26.01.2021.
  • Förster, M. F. and Tóth, I. G. (2015). Cross-country evidence of the multiple causes of inequality changes in the OECD area. In: Atkinson, A.B., Bourguignon, F. (eds.) Handbook of Income Distribution, vol. 2B, (pp. 1729-1842). Amsterdam: Elsevier.
  • Filiztekin, A. (2020). Income Inequality in Turkey: 2003–2015. In: Parlar Dal. E. (eds.) Turkey’s Political Economy in the 21st Century, (pp. 63-84). Cham: Palgrave Macmillan.
  • Firpo, S., Fortin, N. M. and Lemieux, T. (2009). Unconditional quantile regressions. Econometrica, 77(3),953-973.
  • Hornstein, A., Krusell, P. and Violante, G. L. (2005). The effects of technical change on labor market inequalities. In: Aghion, P., Durlauf, S. (eds) Handbook of Economic Growth, vol. 1B. (pp. 1275-1370). Amsterdam: Elsevier.
  • İlkkaracan, I., Levent, H. and Polat, S. (2013). Exploring different measures of wage flexibility in a developing economy context: The case for Turkey. International Review of Applied Economics, 27(3), 297-315. Wage Inequality in Turkish Manufacturing Industry145
  • İlkkaracan, I. and Selim, R. (2007). The gender wage gap in the Turkish labor market. Labour, 21(3), 563-593.
  • International Labour Office (2012). International Standard Classification of Occupations: Structure, GroupDefinitions and Correspondence Tables. ISCO-08, vol.1. Available at:https://www.ilo.org/wcmsp5/groups/public/@dgreports/@dcomm/@publ/documents/publication/wcms_172572.pdf. Access: 26.01.2021.
  • International Labour Organization (2016). Global Wage Report 2016/2017: Wage inequality in the workplace. Available at: https://www.ilo.org/global/research/global-reports/global-wagereport/ 2016/WCMS_537846/lang—en/index.htm Access: 26.01.2021.
  • Kara, O. (2006). Occupational gender wage discrimination in Turkey. Journal of Economic Studies, 33(2), 130-143.
  • Katz, L. F. and Murphy, K. M. (1992). Changes in relative wages, 1963–1987: supply and demand factors. The Quarterly Journal of Economics, 107(1), 35-78.
  • Kent, O. and Sefil-Tansever, S. (2021). Educational wage premia and wage inequality in Turkey. Global Business and Economics Review, 24(4), 360-381.
  • Meschi, E., Taymaz, E. and Vivarelli, M. (2011). Trade, technology and skills: Evidence from Turkish microdata. Labour Economics, 18(1), 60-70.
  • Meschi, E., Taymaz, E. and Vivarelli, M. (2016). Globalization, technological change and labor demand: a firm-level analysis for Turkey. Review of World Economics, 152(4), 655-680.
  • Pelek, S. (2018). The impact of the minimum wage on the wage distribution: Evidence from Turkey. Ekonomi-Tek, 7(1), 17-59.
  • Popli, G. and Yılmaz, O. (2017). Educational attainment and wage inequality in Turkey. Labour, 31(1), 73-104.
  • Tansel, A. (2005). Public-private employment choice, wage differentials, and gender in Turkey. Economic Development and Cultural Change, 53(2), 453-477.
  • Tansel, A. and Bodur, F. B. (2012). Wage inequality and returns to education in Turkey: A quantile regression analysis. Review of Development Economics, 16(1), 107-121.
  • Tekgüç, H., Eryar, D. and Cindoğlu, D. (2017). Women’s tertiary education masks the gender wage gap in Turkey. Journal of Labor Research, 38(3), 360-386.
There are 31 citations in total.

Details

Primary Language English
Subjects Economics
Journal Section Makaleler
Authors

Altan Bozdoğan 0000-0002-4976-9043

Publication Date October 20, 2021
Published in Issue Year 2021

Cite

APA Bozdoğan, A. (2021). WAGE INEQUALITY IN TURKISH MANUFACTURING INDUSTRY. Journal of Research in Economics, 5(2), 129-145. https://doi.org/10.29228/JORE.7