Internal migration and wages: Internal migration and wages in Turkey

Abstract

This chapter considers earning difference between internal migrants and natives in Turkey and investigates the effect of the length of the residence on this earning difference. Conflicting with the most of the existing results in the literature, we find that internal migrants in Turkey are earning significantly more compared to demographically similar natives. We also find that the relation between the wages of migrants and the duration of migration is U-shaped. This means that the wages of migrants decrease with the duration of migration up to a point and then start to increase. Moreover, by using Oaxaca-Blinder decomposition method, we find that 83 percent of this earning difference is explained by differences in the productivity characteristics and 17 percent arises from differences in returns to covariates. © Peter Lang AG 2019.