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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.

Suggested Citation

  • Filiztekin, Alpay, 2011. "Social returns to education in a developing country," MPRA Paper 35124, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:35124
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    File URL: https://mpra.ub.uni-muenchen.de/35124/1/MPRA_paper_35124.pdf
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    References listed on IDEAS

    as
    1. Antonio Ciccone & Giovanni Peri, 2006. "Identifying Human-Capital Externalities: Theory with Applications," Review of Economic Studies, Oxford University Press, vol. 73(2), pages 381-412.
    2. Roback, Jennifer, 1982. "Wages, Rents, and the Quality of Life," Journal of Political Economy, University of Chicago Press, vol. 90(6), pages 1257-1278, December.
    3. Moretti, Enrico, 2004. "Estimating the social return to higher education: evidence from longitudinal and repeated cross-sectional data," Journal of Econometrics, Elsevier, vol. 121(1-2), pages 175-212.
    4. Kirby, Simon & Riley, Rebecca, 2008. "The external returns to education: UK evidence using repeated cross-sections," Labour Economics, Elsevier, vol. 15(4), pages 619-630, August.
    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. N. Gregory Mankiw & David Romer & David N. Weil, 1992. "A Contribution to the Empirics of Economic Growth," The Quarterly Journal of Economics, Oxford University Press, vol. 107(2), pages 407-437.
    7. Daniel Heuermann, 2011. "Human Capital Externalities in Western Germany," Spatial Economic Analysis, Taylor & Francis Journals, vol. 6(2), pages 139-165.
    8. Alberto Dalmazzo & Guido Blasio, 2007. "Social returns to education in Italian local labor markets," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 41(1), pages 51-69, March.
    9. Alexander Muravyev, 2008. "Human capital externalities," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 16(3), pages 415-443, July.
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    Cited by:

    1. repec:wsi:medjxx:v:05:y:2013:i:03:n:s179381201350017x is not listed on IDEAS
    2. Ozan Bakis & Nurhan Davutyan & Haluk Levent & Sezgin Polat, 2013. "Quantile Estimates For Social Returns To Education In Turkey: 2006–2009," Middle East Development Journal (MEDJ), World Scientific Publishing Co. Pte. Ltd., vol. 5(03), pages 1-23.

    More about this item

    Keywords

    human capital externalities; returns to education; wages;

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • A20 - General Economics and Teaching - - Economic Education and Teaching of Economics - - - General
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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