Education, Income Distribution and Gender Pay Gap: The Case of Turkey

Abstract

This article aims to reveal the characteristics of the relationship between education and income distribution in Turkey. Additionally, it examines the role of gender pay gaps in this relationship. In the study, Heckman two-stage estimation and tranche regression methods were applied by using the data from the Household Labor Force survey of 2017 of TURKSTAT. According to the results of the study, according to the Heckman two-stage estimation method, increases in education level increase the wage income of women faster than men. According to the quantile regression method, the effect of education on wages is greater for males in low earning segments and higher for females in high earning segments. The results of the study show that increasing the education level of women is the shortest way to reach a higher level in income distribution equality.