The Impact of Health on Wages in Turkey

The purpose of this study is to estimate the effects of health on hourly wages of women and men in Turkey using panel data. The analysis is based on individual level data obtained from 4 years Turkish Income and Living Conditions Survey. The data is used in estimation of Mincerian earning function where the natural logarithm of an individual’s hourly wage is a function of a number of individual specific characteristics such as health, education, etc. Three health variables are included in the model: self-assessed health status, psychological or physical health limitation and adequate nutrition. This study complements previous studies by utilizing a panel where, education variable measured by degree obtained that varies over time. One of the most crucial observations of this study is that very good and/or good self-assessed health has positive impact on wages more for women than for men. Other important finding of this study is the significant difference on return to education between women and men; women’s return to education is higher than men.