Three essays on education in Turkey

Thesis Type: Doctorate

Institution Of The Thesis: Middle East Technical University, Faculty of Economic and Administrative Sciences, Department of Economics, Turkey

Approval Date: 2005

Thesis Language: English

Student: Fatma Bircan

Supervisor: AYSIT TANSEL


This thesis analyzes the pecuniary aspects of education in Turkey. It consists of three essays. The first essay deals with the demand for education, focusing on private tutoring expenditures of households. The study investigates the determinants of private tutoring expenditures of households using a Tobit model as the estimation method. It is found that wealthier households with higher levels of parental education are more likely to participate in private tutoring. The second essay concerns the wage inequality in the male wages in 1994 and 2002. The study found that the differences in the educational attainment levels are a major determinant of wage inequality. However, returns to education declined at each school level from 1994 to 2002. Wage inequality is also found to exist within the same educational categories. The study shows that differences in returns to the same level of education at distinct points of wage distribution became more pronounced in 2002 compared to 1994. Secondary schooling is found to benefit the least able more compared to those positioned in the middle quantiles of ability distribution. The last study in this thesis attempts to elucidate the determinants of self-employment versus wage employment choice and earnings in the two employment states. The study concludes that financial wealth and risk factor are important determinants of self-employment activity. As the educational attainment levels of individuals increase, the likelihood of becoming self-employed decrease. Education increases the earnings of both self-employed and wage earners. However, education returns are higher for the sub-group of wage employees compared to self-employed.