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Public-Private Employment Choice, Wage Differentials, and Gender in Turkey

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  • Tansel, Avsit
Abstract
The main objective of this article is to examine the factors that explain the employment choice and the wage differentials in public administration, state-owned enterprises, and the formal private wage sector in Turkey. Selectivity-corrected wage equations are estimated for each sector for men and women separately. Oaxaca-Blinder decomposition of the wage differentials between sectors by gender and between men and women by sector are carried out. Results indicate that when controlled for observed characteristics and sample selection, for men public administration wages are higher than private sector wages except at the university level where the wages are at par. State-owned enterprise wages for men are higher than private sector wages. Similar results are obtained for women. Further, while the wages of men and women are at parity in the public administration, there is a large gender wage gap in the private sector in favor of men. Private returns to schooling are found to be lower in the noncompetitive public rather than in the competitive private sector.

Suggested Citation

  • Tansel, Avsit, 2005. "Public-Private Employment Choice, Wage Differentials, and Gender in Turkey," Economic Development and Cultural Change, University of Chicago Press, vol. 53(2), pages 453-477, January.
    • Handle: RePEc:ucp:ecdecc:y:2005:v:53:i:2:p:453-77
    DOI: 10.1086/425374
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    More about this item

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J45 - Labor and Demographic Economics - - Particular Labor Markets - - - Public Sector Labor Markets
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

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