Wage gap and dispersion in a partially unionized structure in Turkey

Abstract

In this paper, we estimate the magnitude of the union-nonunion wage differential and the effect of unions on wage dispersion in the case of Turkey. Using the newly available, individual-level microdata for Turkey in 2004 and 2008, we find out that union membership does have a positive wage differential and this differential is higher at lower quantiles. Furthermore, it seems that the unions systematically reduce the variance of wages for the relevant period, though the magnitudes of the effects are smaller when we control for the work force characteristics.