Analysis of Wage Inequality in Turkey

Discussion of the notion of wages has consistently taken place in economic literature. The way in which wages come to exist and are defined, and what the equilibrium point have been the center of this discussion. The share of wages raise in total income raise. According to Turkey income and living conditions data for 2015, wages, and salaries in Turkey have 52.5% of total revenues. This increases the effect of the inequality in wages on income inequality. Growing discussion of inequality since then the 2008 economic crisis makes it necessary to readdress the determinants of wages and wage inequality. In particular, the human capital model based on the effect of labor quality on wages plays an important role in the analysis of wage inequality. In this study, the household labor force survey micro data set held by Turkey Statistical Institute (Turkstat) is used. In addition to education and experience variables, the basic human capital model is extended to include flexibility in the workplace, job sector, and some demographic characteristics of employee. This study concludes that factors such as atypical work and gender increase wage differential