Return on education in Turkey: A regional analysis (2008-2018)

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2022-12

Author

Rodríguez Guerrero, Diego Alejandro
Koç, Ahmet Ali

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This article analyzes the change in the returns of education at different points of the wage distribution in twelve regions of Turkey according to the classification Nomenclature of Territorial Units for Statistics (NUTS-1). The estimates are based on the Mincer wage equation, but quantile regression technique was used to identify variations between returns to education at different wage levels. The data is taken from the Household Labor Force Survey for the years 2008, 2013 and, 2018. Education in Turkey is characterized by sustained expansion at the university level or higher. The results indicates that the returns of education in the Turkish labor market have decreased over time. In 2008, the rate of return on one additional education year for a worker was ranging between 5 percent and 7.8 percent, while in 2018, it declined to between 3.7 and 6.4 percent. The results obtained in this study show the relationship between the distribution of wages and the educational level of the workforce are consistent with those found in previous studies.

Subject Keywords

Wage Inequality, Returns to Education, Quantile Regression

URI

http://www2.feas.metu.edu.tr/metusd/ojs/index.php/metusd/article/view/1223
https://hdl.handle.net/11511/101269

Journal

ODTÜ Gelişme Dergisi

Collections

Department of Economics, Article

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Citation Formats

D. A. Rodríguez Guerrero and A. A. Koç, “Return on education in Turkey: A regional analysis (2008-2018),” ODTÜ Gelişme Dergisi, vol. 49, no. 2, pp. 293–322, 2022, Accessed: 00, 2023. [Online]. Available: http://www2.feas.metu.edu.tr/metusd/ojs/index.php/metusd/article/view/1223.