Premium
Estimation of Public–Private Wage Differentials in T urkey with Sample Correction
Author(s) -
San Sayın,
Polat Özgür
Publication year - 2012
Publication title -
the developing economies
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.305
H-Index - 30
eISSN - 1746-1049
pISSN - 0012-1533
DOI - 10.1111/j.1746-1049.2012.00172.x
Subject(s) - quantile , quantile regression , wage , earnings , economics , public sector , private sector , sample (material) , estimation , demographic economics , labour economics , econometrics , finance , economic growth , economy , chemistry , management , chromatography
The aim of this study is to determine how the change in the balance between public–private sector employments affected public and private earnings during the 1990s and 2000s in T urkey. We use the O axaca– B linder and quantile decomposition methods to determine the wage gap between public and private sectors utilizing the 1994 H ousehold I ncome D istribution and C onsumption E xpenditure S urvey and the 2008 H ousehold B udget S urvey conducted by the T urkish S tatistical I nstitute. The study determined that the primary difference in the average wages between sectors arises from the differences in the endowments without correction for gender. After adjusting for correction using quantile regression, we find that the difference in the endowments between sectors at lower quantiles explains the majority of the raw wage gap; whereas a substantial amount of the raw wage gap is explained by the sector effect at higher quantiles.