Discussion Paper, Turkish Economic Association 2013/15
A gender differential in wages is considered to be discriminatory if the differential cannot be explained by gender differences in productivity. Numerous studies have been performed to measure the extent of gender wage discrimination in countries across the world, and most report a substantial amount of wage differential after adjusting for productivity differences. This differential has been attributed to labor market discrimination against women. Using data from 2003 and 2010 Household Budget Surveys conducted by Turkish Statistical Institute, this study examines the male-female earnings differentials and measures the extent of pay discrimination in Turkey. To analyze the components of the earnings gap, two methodologies are employed: The standard Oaxaca-Blinder decomposition method and the Juhn-Murphy-Pierce decomposition method. The results of the study indicate that in both years, a significant portion of the observed wage differential is attributable to wage discrimination which records a rise over the period.