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External Returns to Higher Education in Turkey

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  • Ozan Bakis

    (Department of Economics, Galatasaray University)

  • Nurhan Davutyan
  • Haluk Levent
  • Sezgin Polat

Abstract

This paper studies local human capital externalities and returns to education in Turkey. Data comes from 2006 Household Labor Survey. Instrumental Variables-OLS estimation indicates internal (external) returns amounting to 4.9% (2.4%), while IV estimates using quantile regression range from 3% to 6.9% (1.3% to 3.5%). We discuss further characteristics of the Turkish labor market segmented by gender and show that external returns are uniformly higher for women. Our results also indicate both internal and external returns increase or equivalently the wage distribution spreads out as education increases.

Suggested Citation

  • Ozan Bakis & Nurhan Davutyan & Haluk Levent & Sezgin Polat, 2010. "External Returns to Higher Education in Turkey," Working Papers 517, Economic Research Forum, revised 04 Jan 2010.
    • Handle: RePEc:erg:wpaper:517
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    Cited by:

    1. Bakis, Ozan & Polat, Sezgin, 2013. "Wage Inequality in Turkey: 2002-2010," GIAM Working Papers 13-9, Galatasaray University Economic Research Center.
    2. Elgin, Ceyhun & Oyvat, Cem, 2013. "Lurking in the cities: Urbanization and the informal economy," Structural Change and Economic Dynamics, Elsevier, vol. 27(C), pages 36-47.
    3. Saygin, Perihan Ozge, 2014. "Do Girls Really Outperform Boys in Educational Outcomes?," Working Papers 14-05, University of Mannheim, Department of Economics.

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