Higher Participation but Lower Pay? Occupational Segregation and the Wage Penalty in Turkey

Abstract

Women's labor market participation rate in Turkey hit its lowest value in the mid-2000s at 23 percent and has been rising since then. The latest statistics put this figure at 35.1 percent. Just as more women are entering the labor market and turning to wage employment, occupational gender segregation threatens their labor market attachment. This article examines occupational gender segregation and considers its impact on wages. Using representative micro-data, the findings show that a unit increase in the segregation index reduces wages received by women by 6.2 percent but has only a slightly negative effect (0.8 percent) on men. Furthermore, the most severe wage penalty (13.6 percent) is observed among the most educated women. Although more women are making inroads into male jobs, those who remain in relatively female-dominated jobs are found to suffer a higher wage penalty. Addressing occupational segregation is important to preserve the momentum of women's participation.HIGHLIGHTSIn Turkey, women earn lower wages when employed in feminized occupations.Wage penalties in feminized occupations are larger for women than men.Highly educated women face the largest wage penalties from feminization.Occupational gender segregation in Turkey declined between 2012 and 2022.Reducing occupational segregation may help narrow gender wage gaps.