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Decomposition of Real Wage Growth in Turkey

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  • Altan Aldan
  • Hatice Burcu Gurcihan Yunculer

Abstract

[EN] Wage rate is one of the most important variables for policy makers and macro economists. It can be used as an indicator of economic growth and inflationary pressures. However, the average wage growth could also lead to misinterpretations as it involves composition changes in the labor market. In this study, we use Oaxaca-Blinder decomposition technique to filter out the effects of these composition changes on wage growth for the period of 2005-2016. Our results suggest that transformation of the economic structure and the labor force composition increased wages in this period. Besides, the magnitude of this composition effect is not homogeneous across years. Hence, conclusions based on aggregate wage data should be drawn carefully. [TR] Ucretlerdeki artis orani politika yapicilar ve makro iktisatcilar icin en onemli degiskenlerden birisidir. Ucretlerde artis ekonomik buyume ve enflasyonist baskilar konusunda bir gosterge olarak kullanilabilir. Ancak, ortalama ucret artisi verisi isgucu piyasasindaki kompozisyon degisimlerini de icerdiginden hatali yorumlara yol acabilir. Bu calismada, 2005-2016 donemi icin, Oaxaca-Blinder ayristirma yontemi kullanilarak soz konusu kompozisyon degisimlerinden arindirilmis ucret artis verisi elde edilmistir. Calismanin bulgulari, ekonomik yapidaki ve isgucundeki donusum surecinin bu donemde ucretler ustunde artirici bir etkisinin olduguna isaret etmektedir. Ayrica, soz konusu kompozisyon etkisinin boyutu yillar icinde farklilik gosterebilmektedir. Bu nedenle, ortalama ucret artislari kullanilarak yapilacak yorumlarda temkinli olunmalidir.

Suggested Citation

  • Altan Aldan & Hatice Burcu Gurcihan Yunculer, 2017. "Decomposition of Real Wage Growth in Turkey," CBT Research Notes in Economics 1706, Research and Monetary Policy Department, Central Bank of the Republic of Turkey.
    • Handle: RePEc:tcb:econot:1706
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    Cited by:

    1. Kaya Ezgi, 2021. "Gender wage gap across the distribution: What is the role of within- and between-firm effects?," IZA Journal of Development and Migration, Sciendo & Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 12(1), pages 1-49, January.

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