Does Regional Wage Difference Converge or Diverge in Turkey in Terms of Working in the Same Industry

This paper investigates whether there is a convergence in the wage differentiation among regions in Turkey between couples who work in the same industry and those who work in different industries. The Turkish Household Labor Force Surveys from 2004 to 2014 are utilized as the main data. Previous studies found out that although regions can be grouped into three with respect to wage differentials, as time passes wage differentiation patterns show similarities via preliminary visual examination. However, this phenomenon is not analyzed by using econometric techniques. In order to examine whether there is a convergence in the wage differentiation among regions, ordinary least squares regression is employed in accordance with convergence hypothesis. Controlling the regional development indicators, local labor market opportunities and economic performance are investigated, as well.