This study examines the regional earnings inequality between NUTS-1 regions in Turkey using Theil-T statistics by employing Survey of Income and Living Conditions (SILC) data provided by Turkish Statistical Institute (TURKSTAT). We attempt to investigate the evolution of regional earnings inequality for the years 2006 and 2014 by decomposing the Theil T index in order to distinguish its within and between groups components with the special focus on the several attributive subgroups of labor such as education, economic sector, position in occupation and gender. We interpret the decomposition of Theil-T index with regard to its marginal and gross contributions of these subgroupsto total inequality in order to measure their explanatory power of earnings inequality.
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