The impact of globalisation on the skill wage gap in Turkey: a quantile regression approach

Abstract

This study examines how increasing international trade affects the skill wage gap in Turkey. There has been a rapid increase in international trade in Turkey after 2000. As international trade increases, goods produced with higher technologies have a higher share in overall exported products. All these developments raise a question: how does the improvement of technology levels in the Turkish manufacturing industry, together with the increasing demand for skilled workers, change the skill wage gap? To explore this issue, this study utilises the Structure of Earnings Survey Data by the Turkish Statistical Institute. To have more robust results, the quantile regression model is applied to estimate the skill wage gap. One of the most prominent findings of this study is a continuous increase in the skill wage gap even though specific information about firms and workers is controlled.