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Wage differentials by fields of study among college graduates in Turkey: a decomposition analysis

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Purpose – This paper analyzesthe drivers of wage differences among male college graduates who hold a degree
in a different field of study. We focus on Turkey, an emerging country that is characterized by a recentsustained
expansion of higher education.
Design/methodology/approach – We first estimate conditional wage gaps by field of study using OLS
regressions. Average differentials are subsequently decomposed into the contribution of observable
characteristics (endowment) and unexplained factors (returns). Next, we shed light on wage disparities by
field of study along the wage distribution using unconditional quantile regression, by decomposing the wage
gaps by fields of study by applying the Recentered Influence Function regression and decomposing the
contribution of explained and unexplained factors in accounting for wage gaps along the whole distribution.
Findings – The results indicate the existence of important wage differences by field of study, which are
especially high for the fields of law and health. Wage differentials by college majors are mostly driven by
differencesin endowments(especially occupation and, to a lesser extent, employmentsector).The share of wage
differentials that can be attributed to differences in observable characteristics of workers with degrees in
different fields of study varies along the unconditional wage distribution.
Originality/value – This is the first study analyzing wage differentials by fields of study in Turkey using
average and distributional decomposition techniques.

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Journal of Economic Studies, 2025, vol. 52, num.9, p. 48-68

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cc-by (c)  Di Paolo, Antonio; Tansel, Aysit, 2025

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Articles publicats en revistes  (Econometria, Estadística i Economia Aplicada)

# metadata.dc.title[].value
Wage differentials by fields of study among college graduates in Turkey: a decomposition analysis