A Comparative Study Of Returns To Education Of Urban Men In Egypt, Iran, And Turkey
This paper presents a comparative study of private returns to schooling of urban men in Egypt, Iran, and Turkey using similar survey data and a uniform methodology. We employ three surveys for each country that span nearly two decades, from the 1980s to 2006, and, to increase the comparability of the estimates across surveys, we focus on urban men 20–54 years old and in full time wage and salary employment. Our aim is to learn how the monetary signals of rewards that guide individual decisions to invest in education are shaped by the institutions of education and labor markets in these countries. Our estimates generally support the stylized facts of the institutions of education and labor markets in Middle Eastern countries. Their labor markets have been described as dominated by the public sector and therefore relatively inflexible, and their education systems as more focused on secondary and tertiary degrees than teaching practical and productive skills. Returns in all countries are increasing in years of schooling, which is contrary to the Mincer assumption of linear returns but consistent with overemphasis on secondary and tertiary degrees. Low returns to vocational training relative to general upper secondary, which have been observed in many developing countries, are observed in Egypt and Iran, but not Turkey. This pattern of returns across countries seems to correspond to how students are selected into vocational and general upper secondary tracks, which is an important part of the education institutions of these countries, and the fact that Turkey's economy is more open than the other two. Greater competitiveness in all three countries over time seems to have increased returns to university education and in few cases to vocational education, but not to general high school.
Volume (Year): 01 (2009)
Issue (Month): 02 ()
|Contact details of provider:|| Web page: http://www.worldscinet.com/medj/medj.shtml|
|Order Information:|| Email: |
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Tansel, A., 1998.
"Determinants of School Attainment of Boys and Girls in Turkey,"
789, Yale - Economic Growth Center.
- Aysit Tansel, 1998. "Determinants of School Attainment of Boys and Girls in Turkey," Working Papers 9810, Economic Research Forum, revised Jul 1998.
- Robert A. Lawson & Edward Bierhanzl, 2004. "Labor Market Flexibility: An Index Approach to Cross-Country Comparisons," Journal of Labor Research, Transaction Publishers, vol. 25(1), pages 117-126, January.
- Fatma El-Hamidi, 2006. "General or Vocational Schooling? Evidence on School Choice, Returns, and 'Sheepskin' Effects from Egypt 1998," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 9(2), pages 157-176.
- Tansel, Avsit, 2005.
"Public-Private Employment Choice, Wage Differentials, and Gender in Turkey,"
Economic Development and Cultural Change,
University of Chicago Press, vol. 53(2), pages 453-77, January.
- Tansel, A., 1999. "Public_Private Employment Choice, Wage Differential and Gender in Turkey," Papers 797, Yale - Economic Growth Center.
- Tansel, Aysit, 2004. "Public-Private Employment Choice, Wage Differentials and Gender in Turkey," IZA Discussion Papers 1262, Institute for the Study of Labor (IZA).
- Aysit Tansel, 1999. "Public-Private Employment Choice, Wage Differentials and Gender in Turkey," Working Papers 9913, Economic Research Forum, revised May 1999.
- Psacharopoulos, George & Patrinos, Harry Anthony, 2002.
"Returns to investment in education : a further update,"
Policy Research Working Paper Series
2881, The World Bank.
- George Psacharopoulos & Harry Anthony Patrinos, 2004. "Returns to investment in education: a further update," Education Economics, Taylor & Francis Journals, vol. 12(2), pages 111-134.
- Tansel, A., 1992.
"Wage Employment, Earnings and Returns to Schooling for Men and Women in Turkey,"
661, Yale - Economic Growth Center.
- Tansel, Aysit, 1994. "Wage employment, earnings and returns to schooling for men and women in Turkey," Economics of Education Review, Elsevier, vol. 13(4), pages 305-320.
- James J. Heckman & Lance J. Lochner & Petra E. Todd, 2003.
"Fifty Years of Mincer Earnings Regressions,"
NBER Working Papers
9732, National Bureau of Economic Research, Inc.
- Aysit TANSEL, . "Changing Returns To Education For Men And Women In A Developing Country: Turkey, 1994, 2002-2005," EcoMod2008 23800140, EcoMod.
- Card, David, 1999. "The causal effect of education on earnings," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 30, pages 1801-1863 Elsevier.
- Djavad Salehi-Isfahani, 2009.
"Poverty, inequality, and populist politics in Iran,"
Journal of Economic Inequality,
Springer, vol. 7(1), pages 5-28, March.
- Djavad Salehi-Isfahani, 2007. "Poverty, Inequality, and Populist Politics in Iran," Working Papers e07-1, Virginia Polytechnic Institute and State University, Department of Economics.
- Philip A. Trostel, 2005. "Nonlinearity in the return to education," Journal of Applied Economics, Universidad del CEMA, vol. 0, pages 191-202, May.
- repec:cup:cbooks:9780521117562 is not listed on IDEAS
- Tarik M. Yousef, 2004. "Development, Growth and Policy Reform in the Middle East and North Africa since 1950," Journal of Economic Perspectives, American Economic Association, vol. 18(3), pages 91-115, Summer.
- James J. Heckman & Lance J. Lochner & Petra E. Todd, 2008.
"Earnings Functions and Rates of Return,"
NBER Working Papers
13780, National Bureau of Economic Research, Inc.
- Heckman, James J. & Lochner, Lance John & Todd, Petra E., 2008. "Earnings Functions and Rates of Return," IZA Discussion Papers 3310, Institute for the Study of Labor (IZA).
- James J. Heckman & Lance J. Lochner & Petra E. Todd, 2008. "Earnings Functions and Rates of Return," University of Western Ontario, CIBC Centre for Human Capital and Productivity Working Papers 20082, University of Western Ontario, CIBC Centre for Human Capital and Productivity.
- James J. Heckman & Lance J. Lochner & Petra E. Todd, 2008. "Earnings Functions And Rates Of Return," Working Papers 200831, Geary Institute, University College Dublin.
- Christopher R. Bollinger & Amitabh Chandra, 2005.
"Iatrogenic Specification Error: A Cautionary Tale of Cleaning Data,"
Journal of Labor Economics,
University of Chicago Press, vol. 23(2), pages 235-258, April.
- Christopher R. Bollinger & Amitabh Chandra, 2003. "Iatrogenic Specification Error: A Cautionary Tale of Cleaning Data," NBER Technical Working Papers 0289, National Bureau of Economic Research, Inc.
- Bollinger, Christopher R. & Chandra, Amitabh, 2004. "Iatrogenic Specification Error: A Cautionary Tale of Cleaning Data," IZA Discussion Papers 1093, Institute for the Study of Labor (IZA).
- Djavad Salehi-Isfahani & Daniel Egel, 2007. "Youth Exclusion in Iran: The State of Education, Employment and Family Formation," Working Papers e07-2, Virginia Polytechnic Institute and State University, Department of Economics.
- Denny, Kevin & Harmon, Colm & Lydon, Raemonn, 2002. "Cross Country Evidence on the Returns to Education: Patterns and Explanations," CEPR Discussion Papers 3199, C.E.P.R. Discussion Papers.
- Fatma El-Hamidi, 2005. "Wage Inequality by Education and Gender in MENA: Contrasting the Egyptian and Moroccan Experiences in the 1990s," Working Papers 340, University of Pittsburgh, Department of Economics, revised Feb 2008.
- Özlem Onaran & Nursel Aydiner-Avsar, 2006.
"The controversy over employment policy: Low labor costs and openness, or demand policy? A sectoral analysis for Turkey,"
Department of Economics Working Papers
wuwp097, Vienna University of Economics and Business, Department of Economics.
- Nursel AYDINER-AVSAR & Özlem ONARAN, 2010. "The Determinants Of Employment: A Sectoral Analysis For Turkey," The Developing Economies, Institute of Developing Economies, vol. 48(2), pages 203-231.
- Assaad, Ragui, 1997. "The Effects of Public Sector Hiring and Compensation Policies on the Egyptian Labor Market," World Bank Economic Review, World Bank Group, vol. 11(1), pages 85-118, January.
When requesting a correction, please mention this item's handle: RePEc:wsi:medjxx:v:01:y:2009:i:02:p:145-187. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Tai Tone Lim)
If references are entirely missing, you can add them using this form.