Analysis of Public- Private Sector Wage Differentials In Turkey By Quantile Regression Approach

The topic of wage differentials is a frequently problem in the labor markets of developingcountries such as Turkey. These wage differentials can arise from the market imperfections as wellas the individual quality differences. Individual wage differences are arise from the differences atthe rural and urban area s employees access to the education, the health services and the level ofdevelopment and the other reasons. Wage differences arising from the individual quality differencesfind a large place in The Human Capital Theory. These quality differences reflect on wages overtime and lead to income differences between the individuals. The aim of this study is to analyzeincome differences between male and female employees for public and private sector in rural andurban areas in Turkey. Ordinary Least Squares and Quantile Regression Models results by usingTURKSTAT s Household Labor Force Survey micro data set of 2011 are comparatively discussed.Number of studies that have been made in the literature under the QR model and wage differentialsin the labor market has limited. This study will contribute to the limited literature in terms of basichuman capital as well as the extended models.