Wage Inequality in Turkey: Decomposition by Statistical Regions, 1980-2001

This paper analyzes wage inequality in the Turkish manufacturing sector annually from 1980 to 2001, and also provides some evidence for inequality in the post-2001 period. Using the between-groups component of Theil's T statistic, the paper provides more information on wage inequality. It decomposes the evolution of inequality by statistical regions – The Nomenclature of Territorial Units for Statistics – (i.e. NUTS-1 and NUTS-2). The decompositions show that inequality has increased since the late 1980s in the private sector both between regions of NUTS-1 and NUTS-2.