ABSTRACT

Migration is a phenomenon that might cause both positive and negative economic and social effects in the long run. Labor market and wages are among the most affected economic markets and indicators. The qualifications of increasing labor supply are expected to determine the direction and size of the effects. For example, the increased number of skilled workforce triggering economic growth and leading a rise in wages is one possibility while increased unskilled workforce creating unemployment and a fall in wages is the other possibility. The aim of this study is to econometrically analyze the effects of inter-provincial migration and demographic characteristics of migration on wages in four main sectors in Turkey. Findings suggest that, contrary to expectations, the effect of education level on wages is quite low. The weak link between education and wages can be attributed to wage rigidity and rising unemployment in Turkey.