Private and Social Returns to Investment in Education: the Case of Turkey with Alternative Methods

References

• Angrist, J. D., and A. B. Krueger. 1991. “Does Compulsory School Attendance Affect Schooling and Earnings?” Quarterly Journal of Economics 106 (4): 979–1014. doi:10.2307/2937954.
   Web of Science ®Google Scholar
• Appleton, S., J. Hoddinott, and J. Knight. 1996. “Primary Education as an Input into Post-primary Education: A Neglected Benefit.” Oxford Bulletin of Economics and Statistics 58 (1): 211–219. doi:10.1111/j.1468-0084.1996.mp58001010.x.
   Web of Science ®Google Scholar
• Arabsheibani, G. R., and A. Mussurov. 2007. “Returns to Schooling in Kazakhstan.” Economics of Transition 15 (2): 341–364. doi:10.1111/j.1468-0351.2007.00284.x.
   Web of Science ®Google Scholar
• Aydemir, A., and M. G. Kirdar. 2017. “Low Wage Returns to Schooling in a Developing Country: Evidence from a Major Policy Reform in Turkey.” Oxford Bulletin of Economics and Statistics 79 (6): 1046–1086.
   Web of Science ®Google Scholar
• Bakış, O. 2012. Türkiye’de Egitimin Bireysel Getirisi: 1988-2008 (Private Returns to Education in Turkey: 1988-2008). TUSIAD-Sabanci.
   Google Scholar
• Banerjee, A. V., and E. Duflo. 2005. “Growth Theory through the Lens of Development Economics.” In Handbook of Economic Growth 1A, edited by P. Aghion and S. Durlauf. Amsterdam: Elsevier.
   Google Scholar
• Barro, Robert J., and Jong Wha Lee. 2013. “A new data set of educational attainment in the world, 1950–2010.” Journal of development economics 104: 184–198
   Web of Science ®Google Scholar
• Becker, G. S. 1964. Human Capital Theory. New York: Columbia University Press.
   Google Scholar
• Brown, S., and J. G. Sessions. 2004. “Signalling and Screening.” In International Handbook on the Economics of Education, edited by G. Johnes and J. Johnes. Cheltenham: Edward Elgar.
   Google Scholar
• Brunello, G., M. Fort, and G. Weber. 2009. “Changes in Compulsory Schooling, Education and the Distribution of Wages in Europe.” Economic Journal 119 (536): 516–539. doi:10.1111/j.1468-0297.2008.02244.x.
   Web of Science ®Google Scholar
• Card, D. 1999. “The Causal Effect of Education on Earnings.” In Handbook of Labor Economics 3A, edited by O. Ashenfelter and D. Card. Amsterdam: Elsevier.
   Google Scholar
• Card, D. 2001. “Estimating the Return to Schooling: Progress on Some Persistent Econometric Problems.” Econometrica 69 (5): 1127–1160. doi:10.1111/1468-0262.00237.
   Web of Science ®Google Scholar
• Chang, S. K. 2011. “Simulation Estimation of Two‐tiered Dynamic Panel Tobit Models with an Application to the Labor Supply of Married Women.” Journal of Applied Econometrics 26 (5): 854–871. doi:10.1002/jae.1141.
   Web of Science ®Google Scholar
• Chevalier, A., C. Harmon, I. Walker, and Y. Zhu. 2004. “Does Education Raise Productivity, or Just Reflect It?” Economic Journal 114 (499): F499−F517. doi:10.1111/j.1468-0297.2004.00256.x.
   Web of Science ®Google Scholar
• Chib, S., and L. Jacobi. 2016. “Bayesian Fuzzy Regression Discontinuity Analysis and Returns to Compulsory Schooling.” Journal of Applied Econometrics 31: 1026–1047. doi:10.1002/jae.2481.
   Web of Science ®Google Scholar
• Chiswick, B. R. 2006. “Jacob Mincer, Experience and the Distribution of Earnings.” In Jacob Mincer: A Pioneer of Modern Labor Economics, edited by S. Grossbard. New York: Springer.
   Google Scholar
• Colclough, C., G. Kingdon, and H. Patrinos. 2010. “The Changing Pattern of Wage Returns to Education and Its Implications.” Development Policy Review 28 (6): 733–747. doi:10.1111/j.1467-7679.2010.00507.x.
   Web of Science ®Google Scholar
• Comay, Y., A. Melnik, and M. A. Pollatschek. 1993. “The Option Value of Education and the Optional Path for Investment in Human Capital.” International Economic Review 14 (2): 421–435. doi:10.2307/2525931.
   Google Scholar
• Del Carpio, X. 2018. “How Low Human Capital Can Limit Productivity Improvements: Examples from Turkey and Peru”. http://blogs.worldbank.org/education/how-low-human-capital-can-limit-productivity-improvements-examples-turkey-and-peru
   Google Scholar
• Denny, K. J., and C. P. Harmon. 2000. “Education Policy Reform and the Return to Schooling from Instrumental Variables.” Papers 00/12, College Dublin, Department of Political Economy.
   Google Scholar
• Devereux, P. J., and R. A. Hart. 2010. “Forced to Be Rich? Returns to Compulsory Schooling in Britain.” Economic Journal 120 (549): 1345–1364. doi:10.1111/j.1468-0297.2010.02365.x.
   Web of Science ®Google Scholar
• Di Paolo, A., and A. Tansel. 2017. “Analyzing Wage Differentials by Fields of Study: Evidence from Turkey.”, IZA Discussion Paper No. 10915.
   Google Scholar
• Dougherty, C. 2005. “Why are the Returns to Schooling Higher for Women than for Men?” The Journal of Human Resources XL (4): 969–988. doi:10.3368/jhr.XL.4.969.
   Google Scholar
• Duflo, E. 2001. “Schooling and Labor Market Consequences of School Construction in Indonesia: Evidence from an Unusual Policy Experiment.” American Economic Review 91 (4): 795–813. doi:10.1257/aer.91.4.795.
   Web of Science ®Google Scholar
• Eide, E., and G. Waehrer. 1998. “The Role of the Option Value of College Attendance in College Major Choice.” Economics of Education Review 17 (1): 73–82. doi:10.1016/S0272-7757(97)00004-6.
   Web of Science ®Google Scholar
• Fischer, M., M. Karlsson, T. Nilsson, and N. Schwarz 2016. “The Sooner the Better? Compulsory Schooling Reforms in Sweden.” IZA Discussion Paper 10430.
   Google Scholar
• Grenet, J. 2013. “Is Extending Compulsory Schooling Alone Enough to Raise Earnings? Evidence from French and British Compulsory Schooling Laws.” Scandinavian Journal of Economics 115 (1): 176–210. doi:10.1111/j.1467-9442.2012.01739.x.
   Web of Science ®Google Scholar
• Griliches, Z. 1977. “Estimating the Returns to Schooling: Some Econometric Problems.” Econometrica 45 (1): 1–22. doi:10.2307/1913285.
   PubMed Web of Science ®Google Scholar
• Gunderson, M., and P. Oreopoulos. 2020. “Returns to Education in Developed Countries.” In The Economics of Education, 39–51. Academic Press.
   Google Scholar
• Güriş, S., and E. Çağlayan. 2012. “Returns to Education and Wages in Turkey: Robust and Resistant Regression.” Quality & Quantity 46 (5): 1407–1416. doi:10.1007/s11135-011-9453-x.
   Google Scholar
• Harkness, S., and J. Waldfogel. 2003. “The Family Gap in Pay: Evidence from Seven Industrialized Countries.” Research in Labor Economics 22 (1): 369–414.
   Google Scholar
• Harmon, C., and I. Walker. 1995. “Estimates of the Economic Return to Schooling for the United Kingdom.” American Economic Review 85: 1278–1286.
   Web of Science ®Google Scholar
• Harmon, C., and I. Walker. 1999. “The Marginal and Average Return to Schooling in the UK.” European Economic Review 43: 879–887.
   Web of Science ®Google Scholar
• Heckman, J. J. 1974. “Shadow Prices, Market Wages and Labor Supply.” Econometrica 42 (4): 679–694. doi:10.2307/1913937.
   Web of Science ®Google Scholar
• Heckman, J. J. 1979. “Sample Selection Bias as a Specification Error.” Econometrica 47 (1): 153–161. doi:10.2307/1912352.
   Web of Science ®Google Scholar
• Heckman, J. J., L. J. Lochner, and P. E. Todd. 2006. “Earnings Functions, Rates of Return and Treatment Effects: The Mincer Equation and Beyond.” In Handbook of the Economics of Education, edited by E. Hanushek and F. Welch. Vol. 1. Amsterdam: Elsevier.
   Google Scholar
• Heckman, J. J., J. E. Humphries, and G. Veramendi. 2018. “Returns to Education: The Causal Effects of Education on Earnings, Health, and Smoking.” Journal of Political Economy 126 (S1): S197–S246. doi:10.1086/698760.
   PubMed Web of Science ®Google Scholar
• Heckman, J. J., and X. Li. 2004. “Selection Bias, Comparative Advantage and Heterogeneous Returns to Education: Evidence from China in 2000.” Pacific Economic Review 9 (3): 155–171. doi:10.1111/j.1468-0106.2004.00242.x.
   Google Scholar
• Huang, B., and Y. Zhu. 2020. “Higher Education Expansion, the Hukou System, and Returns to Education in China.” IZA Discussion Paper No. 12954.
   Google Scholar
• Huber, M., and G. Mellace. 2014. “Testing Exclusion Restrictions and Additive Separability in Sample Selection Models.” Empirical Economics 47 (1): 75–92. doi:10.1007/s00181-013-0742-1.
   Web of Science ®Google Scholar
• Kara, O. 2008. “Comparing Two Approaches to the Rate of Return to Investment in Education.” Education Economics 18 (2): 153–165. doi:10.1080/09645290802416486.
   Google Scholar
• Karatas, H. M. 2018. “The Returns to Formal Schooling in Turkey Using Pseudo-panel Data.” Giresun Üniversitesi İktisadi ve İdari Bilimler Dergisi Yıl.4. Sayı. 8, ss. 13-33.
   Google Scholar
• Kirdar, M., M. Dayioğlu-Tayfur, and I. Koç. 2016. “Does Longer Compulsory Education Equalize Educational Attainment? Evidence from a Major Policy Reform.” World Bank Economic Review 30 (3): 549–579. doi:10.1093/wber/lhv035.
   Web of Science ®Google Scholar
• Krueger, A. O. 1972. “Rates of Return to Turkish Higher Education.” Journal of Human Resources 7 (4): 482–499. doi:10.2307/144751.
   Web of Science ®Google Scholar
• Lemieux, T. 2006. “The ‘Mincer Equation’ Thirty Years after Schooling, Experience, and Earnings.” In Jacob Mincer: A Pioneer of Modern Labor Economics, edited by S. Grossbard. New York: Springer.
   Google Scholar
• Martins, M. F. O. 2001. “Parametric and Semiparametric Estimation of Sample Selection Models: An Empirical Application to the Female Labour Force in Portugal.” Journal of Applied Econometrics 16 (1): 23–39. doi:10.1002/jae.572.
   Web of Science ®Google Scholar
• Mincer, J. 1974. Schooling, Experience and Earnings. New York: Columbia University Press.
   Google Scholar
• Mocan, L. 2014. “The Impact of Education on Wages: Analysis of an Education Reform in Turkey.” Koç University-TUSIAD Economic Research Forum Working Papers Working Paper No. 1424.
   Google Scholar
• Montenegro, C. E., and H. A. Patrinos. 2014. “Comparable Estimates of Returns to Schooling around the World.” World Bank Policy Research Working Paper No. 7020.
   Google Scholar
• Neumann, G., N. Olitsky, and S. Robbins. 2009. “Job Congruence, Academic Achievement, and Earnings.” Labour Economics 16 (5): 503–509. doi:10.1016/j.labeco.2009.03.004.
   Web of Science ®Google Scholar
• OECD. 2018. Education as a Glance. Paris: OECD.
   Google Scholar
• Oreopoulos, P. 2006. “Estimating Average and Local Average Treatment Effects of Education When Compulsory Schooling Laws Really Matter.” American Economic Review 96 (1): 152–175. doi:10.1257/000282806776157641.
   Web of Science ®Google Scholar
• Oreopoulos, P., and U. Petronijevic. 2013. “Making College Worth It: A Review of the Returns to Higher Education.” Future of Children 23 (1): 41–65. doi:10.1353/foc.2013.0001.
   PubMed Web of Science ®Google Scholar
• Oyelere, R. U. 2011. “Have Returns to Education Changed in Nigeria? Uncovering the Role of Democratic Reforms.” Journal of African Economies 20 (5): 737–780. doi:10.1093/jae/ejr016.
   Web of Science ®Google Scholar
• Ozelli, M. T. 1970. “The Estimates of Private Internal Rates of Return on Educational Investment in the First Turkish Republic, 1923-1960.” International Journal of Middle East Studies 1 (2): 154–176. doi:10.1017/S0020743800024028.
   Web of Science ®Google Scholar
• Ozturk, A., and S. Tumen. 2018. “Education and Labor Market Consequences of Student Protests in Late 1970s and the Subsequent Military Coup in Turkey.” IZA Discussion Papers No. 11733, Institute of Labor Economics (IZA), Bonn.
   Google Scholar
• Patrinos, H. 2016. “Estimating the Return to Schooling Using the Mincer Equation.” IZA World of Labor 2016: 278. doi:10.15185/izawol.278.
   Google Scholar
• Patrinos, H. A., and C. Sakellariou. 2005. “Schooling and Labor Market Impacts of a Natural Policy Experiment.” Labour 19 (4): 705–719. doi:10.1111/j.1467-9914.2005.00318.x.
   Google Scholar
• Patrinos, H. A., and G. Psacharopoulos. 2020. “Returns to Education in Developing Countries.” In The Economics of Education, 53–64.
   Google Scholar
• Peet, E. D., G. Fink, and W. Fawzi. 2015. “Returns to Education in Developing Countries: Evidence from the Living Standards and Measurement Study Surveys.” Economics of Education Review 49: 69–90. doi:10.1016/j.econedurev.2015.08.002.
   Web of Science ®Google Scholar
• Polachek, S. W. 2008. “Earnings over the Life Cycle: The Mincer Earnings Function and Its Applications.” Foundations and Trends in Microeconomics 4 (3): 165–272. doi:10.1561/0700000018.
   Google Scholar
• Pons, E., and M. T. Gonzalo. 2002. “Returns to Schooling in Spain: How Reliable are Instrumental Variable Estimates?” Labour 16 (4): 747–770. doi:10.1111/1467-9914.00215.
   Google Scholar
• Psacharopoulos, G. 1983. “Education and Private versus Public Sector Pay.” Labour and Society 8 (2): 123–133.
   Google Scholar
• Psacharopoulos, G., and G. Williams. 1973. “Public Sector Earnings and Educational Planning.” International Labour Review 108 (1): 43–57.
   Web of Science ®Google Scholar
• Psacharopoulos, G., and H. A. Patrinos. 2018. “Returns to Investment in Education: A Decennial Review of the Global Literature.” Education Economic 26 (5):.445–458. doi:10.1080/09645292.2018.1484426.
   Web of Science ®Google Scholar
• Psacharopoulos, G., and P. Teixeira. 2019. “Rates of Return to Education: Conceptual and Methodological Issues.” In Encyclopedia of International Higher Education Systems and Institutions, 1–8. Dordrecht, Germany: Springer.
   Google Scholar
• Psacharopoulos, G., and R. Mattson. 1998. “Estimating the Returns to Education: A Sensitivity Analysis of Concepts and Methods.” Journal of Educational Planning and Administration 12 (3): 271–287.
   Google Scholar
• Sakellariou, C. 2006. “Education Policy Reform, Local Average Treatment Effect and Returns to Schooling from Instrumental Variables in the Philippines.” Applied Economics 38 (4): 473–481. doi:10.1080/00036840500367864.
   Web of Science ®Google Scholar
• Salehi-Isfahani, D., I. Tunali, and R. Assaad. 2009. “A Comparative Study of Returns to Education of Urban Men in Egypt, Iran, and Turkey.” Middle East Development Journal 1 (2): 145–187. doi:10.1142/S1793812009000085.
   Google Scholar
• Schündeln, M., and J. Playforth. 2014. “Private versus Social Returns to Human Capital: Education and Economic Growth in India.” European Economic Review 66: 266–283.
   Web of Science ®Google Scholar
• Shafiq, M. N. 2007. “Household Rates of Return to Education in Rural Bangladesh: Accounting for Direct Costs, Child Labour, and Option Value.” Education Economics 15 (3): 343–358. doi:10.1080/09645290701306358.
   Google Scholar
• Sianesi, B., and J. V. Reenen. 2003. “The Returns to Education: Macroeconomics.” Journal of Economic Surveys 17 (2): 157–200. doi:10.1111/1467-6419.00192.
   Web of Science ®Google Scholar
• Stange, K. M. 2012. “An Empirical Investigation of the Option Value of College Enrollment.” American Economic Journal. Applied Economics 4 (1): 49–84.
   Web of Science ®Google Scholar
• Tansel, A. 1994. “Wage Employment, Earnings and Returns to Schooling for Men and Women in Turkey.” Economics of Education Review 13 (4): 305–320. doi:10.1016/S0272-7757(05)80054-8.
   Google Scholar
• Tansel, A. 2000. “Formal and Informal Sector Choice of Wage Earners and Their Wages in Turkey.” In Informal Sector I, edited by T. Bulutay, 125–150. Ankara: State Institute of Statistics.
   Google Scholar
• Tansel, A. 2001. “Self-employment, Wage-employment, and Returns to Schooling by Gender in Turkey.” In Labor and Human Capital in the Middle East: Studies of Markets and Household Behavior, edited by Djavad Salehi-Isfahani, 637–667. Reading, UK: Ithaca Press.
   Google Scholar
• Tansel, A. 2005. “Public-private Employment Choice, Wage Differentials and Gender in Turkey.” Economic Development and Cultural Change 53 (2): 453–477. doi:10.1086/425374.
   Web of Science ®Google Scholar
• Tansel, A. 2010. “Changing Returns to Education for Men and Women in a Developing Country: Turkey, 1994-2005.” Paper presented at the ESPE conference, June 18-21, 2008, in London, ECOMOD conference, July 2-4, 2008 in Berlin, MEEA conference, March 20-23, 2009 in Nice, France and ICE-TEA conference, 1-3 September 2010. Girne, Republic of Northern Cyprus.
   Google Scholar
• Tansel, A., and E. Ö. Kan. 2016. “The Formal/informal Employment Earnings Gap: Evidence from Turkey.” In Research On Economic Inequality, edited by J. A. Bishop and J. G. Rodriguez, 123–156. Vol. F24.
   Google Scholar
• Tansel, A. 2017. “Returns to Education in Turkey: IV Estimates from a Developing Country.” Paper presented at the Economic Research Forum (ERF) 23rd Annual Conference, 18-20 March 2017, Amman, Jordan.
   Google Scholar
• Tansel, A., and F. B. Bodur. 2012. “Wage Inequality and Returns to Education in Turkey: A Quantile Regression Analysis.” Review of Development Economics 16 (1): 107–121. doi:10.1111/j.1467-9361.2011.00655.x.
   Web of Science ®Google Scholar
• Tansel, A., H. I. Keskin, and Z. A. Ozdemir. Forthcoming. “Public- Private Sector Wage Gap by Gender in Egypt: Evidence from Quantile Regression on Panel Data, 1998-2018.” World Development 135 (November).
   Google Scholar
• Tansel, A., and Y. Daoud. 2014. “Comparative Essay for Returns to Education in Palestine and Turkey.” Perspectives on Global Development and Technology 13 (3): 347–378. doi:10.1163/15691497-12341306.
   Google Scholar
• TCMB (Republic of Turkey Central Bank). 2018. “Exchange Rate Statistics Web Page Accessed January 2019”. https://www.tcmb.gov.tr/wps/wcm/connect/EN/TCMB+EN/Main+Menu/Statistics/Exchange+Rates
   Google Scholar
• Torun, H. 2018. “Compulsory Schooling and Early Labor Market Outcomes in a Middle-income Country.” Journal of Labor Research 39 (3): 277–305. doi:10.1007/s12122-018-9264-0.
   Web of Science ®Google Scholar
• Trostel, P., I. Walker, and P. Woolley. 2002. “Estimates of the Economic Return to Schooling for 28 Countries.” Labour Economics 9 (1): 1–16. doi:10.1016/S0927-5371(01)00052-5.
   Web of Science ®Google Scholar
• TURKSTAT (Turkish Statistical Institute). 2018. “Education Expenditure Statistics Web Page Accessed January 2019”. www.tuik.gov.tr
   Google Scholar
• TURKSTAT (Turkish Statistical Institute). 2020a. “Meta Information on Household Labor Force Statistics Web Page Accessed October 2020”. http://www.turkstat.gov.tr/UstMenu.do?metod=metabilgi
   Google Scholar
• TURKSTAT (Turkish Statistical Institute). 2020b. “Labor Force Statistics Web Page Accessed June 2020”. www.tuik.gov.tr
   Google Scholar
• Vural, B. M., and Y. Gülcan. 2008. “Impact of Education on Individual Earnings in Turkey.” International Journal of Economic Perspectives 2 (3): 124–132.
   Google Scholar
• Webber, D. 2014. “Is the Return to Education the Same for Everybody?” IZA World of Labor 92. doi:10.15185/izawol.92.
   Google Scholar
• Weisbrod, B. 1962. “Education and Investment in Human Capital.” Journal of Political Economy 70 (5, Part 2): 106–123. doi:10.1086/258728.
   Web of Science ®Google Scholar
• World Bank. 2005. Turkey: Education Sector Study: Sustainable Pathways to an Effective, Equitable and Efficient Education System for Preschool through Secondary School Education. Washington, D.C.: World Bank.
   Google Scholar
• World Bank. 2016. Productivity Dynamics in Turkey: Evidence from Firm-level Data. Turkey focus note. Washington, D.C.: World Bank.
   Google Scholar