| The purpose of this dissertation is to examine the economic returns to investment in education by applying human capital theory to Turkey. Turkey, one of the least studied of the OECD countries, is an important case considering both its strenuous attempts to modernize and its negotiation of culturally (Islamic) based gender differences. Therefore, given the important role of human capital investment in economic and social development, this study sheds light on factors affecting the economic returns to investment in human capital in Turkey.; This study employs three Turkish household surveys: the 1994 household income and consumption expenditure survey (State Institute of Statistics [SIS], 1994), the 1987 household income and consumption expenditure survey (SIS, 1987), and the 1968 household survey (Hacettepe University, 1968). Using these data, the internal rates of return to schooling are estimated. The social and private rates of return to education are calculated for men and women as well as for each region.; The analysis of the data reveals eight main findings. First, social rates of return are lower than private rates of return to investment in schooling. Second, internal rates of return decrease over time with larger decreases for lower levels of schooling and smaller decreases for higher level of schooling. Third, internal rates of return exhibit diminishing returns to human capital. Fourth, the highest rates of return to investment in education are found in elementary schools. Fifth, rates of return to investment in vocational-technical secondary schools are lower than general secondary education. Sixth, women on average obtain lower internal rates of return than do men. Seventh, rates of return to investment in schooling are higher in the Western regions than the Eastern regions, and there is a convergence in the rates of return for higher level of schooling and for gender. Eighth, economic conditions such as the unfavorable labor market conditions, inflation, and international trade have adversely affected the rates of return over time. Still, the rates of return to investment in education are generally high, indicating that the investment in human capital in Turkey proves not only socially beneficial but also profitable to individuals. |
