Pay inequality in Turkey in the neo-liberal era, 1980-2001

This paper examines pay inequality in Turkish manufacturing annually from 1980 to 2001. Using the between-group component of Theil's T statistic, we decompose the evolution of inequality by geographic region, province, sub-sector and by East-West distinction both for private and public sectors. The decompositions show that while inequality remains approximately the same between regions, it increases in the late 1980s in the private sector between provinces, between East and West, and as well as between manufacturing sub-sectors