ÖZ
In the paper, the union wage premium in Turkey is analyzed by distinguishing the public and private sectors for the years 2002 and 2011. There are significant differences across sectors in terms of how the unions affect the earnings. Despite the low levels of unionization, the pay differential is considerable in Turkey, and the unionization has significantly higher effects in the private sector. Oaxaca-Blinder decomposition reveals that endowment is more crucial for the wages in the private sector. We argue that firm heterogeneity and underlying employee characteristics lead to these differences in premiums. Even after controlling for these union premium remains to be significant in both sectors. Additionally, wage setting practices in the public and private sector are distinct as the former is more institutionalized and similar contractual terms can be applicable to non-unionized workers. In the private sector, on the other hand, the bargaining framework is decentralized and bilateral, which does not allow most of the benefits to be extended to nonmembers
Anahtar Kelimeler : ÖZTrade Unions, Wage, Public Sector, Private Sector, Propensity Score Matching
