Wage determinants and wage inequalities - Case of construction engineers in Turkey

Abstract

Unfair wage policies that fail to meet the needs of employees have been cited to be one of the most important reasons for high turnover rates of construction professionals. Despite, little research has been conducted related to the determinants of a fair wage, and industry-wide wage policies. Hence, a questionnaire survey was held in 2016 with 305 company/human resource managers and 410 construction engineers working in the Turkish construction industry, which is one of the largest in the world, to determine wage policies of the companies. Findings of the questionnaire survey are discussed within the frame of the literature findings related to the prerequisites of a fair wage. Wages of respondents are compared to the legal minimum wage requirements. Effects of some compensable variables like the level of education, experience, seniority in the company, foreign language skills, computer skills, the complexity of the project, the location of the project and the size of the company on the wage rates are examined by using Multinomial Logistic Regression Analysis and Self Organizing Maps. Lorenz Curves and Gini Coefficients are used to represent and analyze the wage distribution of the respondents. Multinational comparisons are presented where possible. The findings of the current research present a benchmark for further research related to the prevailing wages, wage inequalities, and the wage policies, not only for Turkish construction industry but also for the construction industry worldwide.