Structural Change in Wage Differentiation Patterns for Turkey in Terms of Working in the Same Industry

In this paper, wage differentiation patterns for Turkey in terms of the couples who are working in the same industry and the ones who are working in different industries are investigated. In order to do this, the Turkish Household Labor Force Surveys from 2004 to 2014 are utilized. In the graphical representation, it is examined that regions can be grouped into three with respect the wage differentiation. For the first case, differentiation gap stays the same, for the second case, this gap increases and for the last case at first this gap decreases and then it increases in between. These findings are valid not only for females' but also males' mean hourly income. In the empirical analyses, the squared wage differences are clustered into three categories by using K-Means clustering method and then the behavior of each regions changing from one cluster to the other one are tracked and calculated with variations of this behavior. It is concluded that eastern regions as well as northern and landlocked regions change their clusters while western regions in general changes as well as southern and seaside regions do. If the variation is higher for the region, this is probably due to the structural changes in those regions