Munich Personal RePEc Archive

Does Education Pay off in Turkey? An Ordered Logit Approach

Oksuzler, Oktay (2008): Does Education Pay off in Turkey? An Ordered Logit Approach. Published in: The Empirical Economics Letters , Vol. 7(2), (February 2008): pp. 213-221.

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Abstract

Abstract: This paper investigates the effect of education on individual income in Turkey. To this end, Mincerian (1974) earning equation is estimated in which income as a function of education, age, square of age and sex. Since all of the variables are in the form discrete choices, an ordered logit model is employed. This model lets to calculate probabilities of achieving higher income given education levels that are not provided by the earlier studies of Tansel (1994), Dayıoglu and Kasnakoglu (1997) and Ozcan et al.. (2003). The empirical findings show that as education level increases, the probability of achieving higher income raises notably. The finding of highest return for university education for both sexes supports the view; education should be considered as an investment and individuals should bear the cost of it to some extent.

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