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Social returns to education in a developing country

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  • Filiztekin, Alpay

Abstract

This paper estimates social returns to education in Turkey. Most evidence on spillovers from human capital comes mostly from developed countries, and estimates vary from country to country. The paper finds that social returns to education are around 3-4%, whereas private returns per year of education amount to 5% in Turkey. Moreover, the findings indicate that workers with lower skills, or working in sectors with lower average wages benefit most from externalities. The results are robust to a series of checks, using a number of individual and regional controls, as well as instrumental variable estimation.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 35124.

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Date of creation: 2011
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Handle: RePEc:pra:mprapa:35124

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Keywords: human capital externalities; returns to education; wages;

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  1. Alberto Dalmazzo & Guido Blasio, 2007. "Social returns to education in Italian local labor markets," The Annals of Regional Science, Springer, vol. 41(1), pages 51-69, March.
  2. Enrico Moretti, 2002. "Estimating the Social Return to Higher Education: Evidence From Longitudinal and Repeated Cross-Sectional Data," NBER Working Papers 9108, National Bureau of Economic Research, Inc.
  3. Daniel F. Heuermann, 2009. "Human Capital Externalities in Western Germany," IAAEG Discussion Papers until 2011 200903, Institute of Labour Law and Industrial Relations in the European Union (IAAEU).
  4. Rebecca Riley & Simon Kirby, 2007. "The external returns to education: UK evidence using repeated cross-sections," NIESR Discussion Papers 1490, National Institute of Economic and Social Research.
  5. Liu, Zhiqiang, 2007. "The external returns to education: Evidence from Chinese cities," Journal of Urban Economics, Elsevier, vol. 61(3), pages 542-564, May.
  6. Ciccone Antonio & Peri Giovanni, 2007. "Identifying Human Capital Externalities. Theory with Applications," Working Papers 201098, Fundacion BBVA / BBVA Foundation.
  7. N. Gregory Mankiw & David Romer & David N. Weil, 1990. "A Contribution to the Empirics of Economic Growth," NBER Working Papers 3541, National Bureau of Economic Research, Inc.
  8. Roback, Jennifer, 1982. "Wages, Rents, and the Quality of Life," Journal of Political Economy, University of Chicago Press, vol. 90(6), pages 1257-78, December.
  9. Alexander Muravyev, 2008. "Human capital externalities," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 16(3), pages 415-443, 07.
  10. Torge Middendorf, 2008. "Returns to Education in Europe – Detailed Results from a Harmonized Survey," Ruhr Economic Papers 0065, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
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