Relation between health and wages in Turkey

Abstract

The purpose of this study is to estimate the effects of health on the hourly wages of women and men in Turkey by using panel data. The data are used to estimate the earning function, where the natural logarithm of hourly wage is the function of individual characteristics, including health. This work complements previous studies by using a panel in which the education variable, measured by the degree obtained, varies over time and therefore it can be estimated through the within estimator. One of the most important observations of this study is that very good and/or good self-assessed health status has a positive effect on wages more for women than for men. Another important finding is that of significant difference in the rate of return to education, which is higher for women than for men.