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

Hacienda Pública Española / Review of Public Economics 238-(3/2021): 3-28

Posted: 12 Oct 2021

See all articles by Merve Kurt

Merve Kurt

affiliation not provided to SSRN

Erdal Gumus

Eskisehir Osmangazi University - Department of Public Finance

Date Written: 2021

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-Taylor 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 significantly different across various higher education programs. Based on the empirical findings, a number of policy recommendations are developed.

Keywords: Returns on education, Investment in education, Human capital, Social return on higher education

JEL Classification: I21, I26, C33.

Suggested Citation

Kurt, Merve and Gumus, Erdal, Returns on Investment in Education: Evidence from Turkey by Education Level and by Higher Education Program (2021). Hacienda Pública Española / Review of Public Economics 238-(3/2021): 3-28 , Available at SSRN: https://ssrn.com/abstract=3941009

Merve Kurt

affiliation not provided to SSRN

Erdal Gumus (Contact Author)

Eskisehir Osmangazi University - Department of Public Finance ( email )

Meselik Campus
Eskisehir, 26480
Turkey
+222 239 37 50/1751 (Phone)

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