Income differentials and education in Turkey: Evidence from individual level data

Abstract

This paper investigates the main determinants of individual income differences in Turkey. Special attention is given to the effects of education on individual income. To this end, selectivity corrected ordered logit model is used. The individual level data is obtained from on national scale representative data sets of the Household Labor Force Surveys (HLFS) of 2004 and 2005. The main findings of the paper are as follows. (i) Increase in education level seems to raise the probability of being wage employed as well as income being paid. (ii) Living in urban areas increases the likelihood of being as wage earner as well as income earned for both males and females. (iii) As being female increases the probability of being as wage earner, income for females is lower than that for males. (iv) While increase in experience lowers the probability of being as wage employed, it increases the income obtained. (v) Full-time workers are more likely to be wage employed as well as earn more income.