ERC WORKING PAPERS
The Determinants of Earning Differentials in Ankara and Istanbul
İ. Semih AKÇOMAK and Zehra KASNAKOĞLU
In this study, an attempt is made to compare and contrast the determinants of earnings differentials in Ankara and İstanbul. The determinants of earnings differentials are first examined with semi-logarithmic single equation models based on the basic human capital approach. Secondly, extended models are formed in which all the variables are expressed as dummy variables. In general, the average per hour earnings in İstanbul, is higher than in Ankara. It is found that age, gender, education and job status have significant effects on the explanatory power of the model, whereas occupation and marital status have only limited effect.
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