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.
Download (71Kb) | Preview
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.
|Item Type:||MPRA Paper|
|Original Title:||Does Education Pay off in Turkey? An Ordered Logit Approach|
|Keywords:||Keywords: Education, Income, ordered logit|
|Subjects:||I - Health, Education, and Welfare > I2 - Education and Research Insititutions > I20 - General
C - Mathematical and Quantitative Methods > C3 - Multiple or Simultaneous Equation Models; Multiple Variables > C35 - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
C - Mathematical and Quantitative Methods > C2 - Single Equation Models; Single Variables > C25 - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
|Date Deposited:||01. Apr 2009 16:09|
|Last Modified:||13. Feb 2013 23:01|
References Amemiya, K.,1981, Qualitative Response Models: A Survey, Journal of Economic Literature, 194: 483-536.
Angrist, J. And Krueger, A., 1991, Does Compulsory School Attendance Affect Schooling and Earnings?, Quarterly Journal of Economics, 106, 979-1014.
Barro, R.,1997, Determinants of Economic Growth: A Cross-Country Empirical Study, Lionel Robbins Lectures, (MIT Press, Cambridge).
Card, D., 1995, Using Geographic Variation in College Proximity to Estimate the Returns to Schooling, in: L. Christofides et al., eds., Aspects of Labor Market Behavior: Essays in Honour of John Vanderkamp (University of Toronto Press, Toronto), 201-222.
Dayıoglu, M. and Kasnakoglu, Z., 1997, Kentsel Kesimde Kadýn ve Erkeklerin İşgücüne Katılımları ve Kazanç Farklılıkları, METU Studies in Development, 24(3), 329-61.
Greene, W., 1997, Econometric Analysis. Upper Saddle River: Prentice Hall.
Krueger, A. B. and Lindahl, M., 1999, Education for Growth in Sweden and TheWorld, NBER Working Papers No. 7190, National Bureau of Economic Research.
Katz, L. and Autor, D., 1999, Changes in the Wage Structure and Earnings Inequality, Orley Ashenfelter and David Card (drl), Handbook of Labor Economics, Volume 3A , Amsterdam and New York: North-Holland.
Hjerppe, R., 2003, Social Capital and Economic Growth Revisited, VATT Discussion Papers, Helsinki.
Lucas, R., 1988, On the Mechanics of Economic Development, Journal of Monetary Economics 22, 3-42.
Harmon, C. And Walker, I., 1995, Estimates of the Economic Return to Schooling for the United Kingdom, American Economic Review 85, 1278-1286.
Mincer, J., 1974, Schooling, Experience and Earnings, New York: Columbia University Press.
Ucdogruk S., Kivilcim M. Ö., Özcan Y.Z., 2000, Türkiye’de Gelişmişlik İndeksine Göre Seçilmiş İllerde Gelir Farklılıklarını Belirleyen Etmenler, Ekonomik Yaklaşım, 1, 37, pp. 29-57.
Ozcan, Y. Z., Ozcan, M. K. and Ucdogruk, S., 2003, Wage Differences by Gender, Wage and Self Employment in Urban Turkey, Journal of Economic Corporation. 24, p.1-24
Sawkins, W.J., Seaman T. P., and Williams C.S., 1997, Church Attendance in Great Britain: An Ordered Logit Approach, Applied Economics, 29: 2, February 1.
Tansel A., 1994, Wage Employment, Earnings and Returns to Schooling for Men and Women in Turkey, Economics of Education Review, 13(4), 305-20.
_______ ,1996, Self Employment, Wage Employment Choice and Returns to Education for Urban Men and Women in Turkey, T. Bulutay Education and Labor Markets in Turkey,
Ankara. State Statistics Institute ________,1999, Türkiye ve Seçilmiş Ülkelerde Eğitimin Getirisi, METU Development in Studies, 26(3-4), 453-472.
Zavoina, R. and Mcelvey, W., 1975), A Statistical Model for the Analysis of Ordinal Level Dependent Variables, Journal of Mathematical Sociology, 103-2.