A Study on The Determinants of Income in Turkey

Serdar TURAÇ, Erhan ÇANKAL


The objective of this study is to analyze the effects of social, economic, and individual factors on individual earnings. This research study is motivated by Becker’s Human Capital Model and Mincer’s studies on wage models. Turkish Statistical Institute’s (TURKSTAT) micro data set that is revealed for the year 2011 and titled Household Budget Survey and Income Distribution is used for the analyses. The data set covers an effective sample size of 9,918 households and 37,121 individuals who are interviewed by TURKSTAT periodically. The studied models are then enriched with adding a gender effect. The findings indicate that the males earn more than women who posses similar characteristics with men. This reflects a gender wage gap among economically active Turkish population. Moreover, vocational high schools graduates perform better than other high school graduates economically. The results also reveal some other important relationships between the earnings of economically active population and the primary income components that are included in the models.

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