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Returns on Investment in Education: Evidence from Turkey by Education Level and by Higher Education Program

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  • Merve Kurt

    (Eskisehir Osmangazi University)

  • Erdal Gumus

    (Eskisehir Osmangazi University)

Abstract

This paper estimates private and social returns on investment in education in Turkey, by level of education and by higher education program, using the 2008-2016 Household Labor Force Survey and Income and Living Conditions Survey panel datasets. The paper uses panel econometrics with the Hausman-Tay¬lor and instrumental variable methods dealing with the endogeneity and unobserved heterogeneity problems. The private returns on investment in higher education tend to be higher as compared to the private returns on investment in non-tertiary education. The results indicate that the private returns on investment from various higher education programs are signifcantly different across various higher ed¬ucation programs. Based on the empirical fndings, a number of policy recommendations are developed.

Suggested Citation

  • Merve Kurt & Erdal Gumus, 2021. "Returns on Investment in Education: Evidence from Turkey by Education Level and by Higher Education Program," Hacienda Pública Española / Review of Public Economics, IEF, vol. 238(3), pages 3-28, September.
    • Handle: RePEc:hpe:journl:y:2021:v:238:i:3:p:3-28
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    More about this item

    Keywords

    Returns on education; Investment in education; Human capital; Social return on higher education;
    All these keywords.

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models

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