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Economic Impacts of the 1997 Compulsory Education Reform in Türkiye: New Findings and Employment Analysis

Year 2024, Volume: 10 Issue: 2, 407 - 420, 15.10.2024
https://doi.org/10.20979/ueyd.1515537

Abstract

This study investigates the economic impact of Türkiye's 1997 compulsory education reform (CER), which extended mandatory schooling from five to eight years. Utilizing data from the seventh wave of the World Values Survey and employing an instrumental variable approach with Two-Stage Least Squares (2SLS) estimation, I provide new insights into the reform's outcomes. The findings reveal that the reform significantly increased educational attainment and reduced gender disparities. However, the anticipated economic benefits were limited, with higher unemployment rates and a lower likelihood of high-skilled employment among affected cohorts. Additionally, those affected by the reform reported lower perceived improvements in their standard of living compared to their parents. These results suggest that the expansion of education increased the supply of educated individuals, potentially lowering the overall value of education in the labour market.

References

  • Adamecz, A. (2023). Longer schooling with grade retention: The effects of increasing the school leaving age on dropping out and labour market success. Economics of Education Review, 97, 102487.
  • Angrist, J. (1991). Instrumental variables estimation of average treatment effects in econometrics and epidemiology (No. w0115). National Bureau of Economic Research.
  • Angrist, J. D. (2001). Estimation of limited dependent variable models with dummy endogenous regressors: Simple strategies for empirical practice. Journal of Business & Economic Statistics, 19(1), 2–28.
  • Angrist, J. D., & Pischke, J. S. (2009). Mostly harmless econometrics: An empiricist's companion. Princeton university press.
  • Akcigit, U., Pearce, J., and Prato, M. (2024). Tapping into talent: Coupling education and innovation policies for economic growth. Review of Economic Studies, rdae047.
  • Andersson, R., Quigley, J. M., and Wilhelmsson, M. (2009). Urbanization, productivity, and innovation: Evidence from investment in higher education. Journal of Urban Economics, 66(1), 2-15.
  • Aydemir, A., and Kirdar, M. G. (2017). Low wage returns to schooling in a developing country: Evidence from a major policy reform in Türkiye. Oxford Bulletin of Economics and Statistics, 79(6), 1046-1086.
  • Barth, E., Kerr, S. P., and Olivetti, C. (2021). The dynamics of gender earnings differentials: Evidence from establishment data. European Economic Review, 134, 103713.
  • Clark, D. (2023). School quality and the return to schooling in Britain: New evidence from a large-scale compulsory schooling reform. Journal of Public Economics, 223, 104902.
  • Choi, B. Y. (2024). Instrumental variable estimation of weighted local average treatment effects. Statistical Papers, 65(2), 737-770.
  • Cortés, P., and Pan, J. (2023). Children and the remaining gender gaps in the labor market. Journal of Economic Literature, 61(4), 1359-1409.
  • Davies, N. M., Dickson, M., Davey Smith, G., Van Den Berg, G. J., and Windmeijer, F. (2018). The causal effects of education on health outcomes in the UK Biobank. Nature human behaviour, 2(2), 117-125.
  • Deuchert, E., & Huber, M. (2017). A cautionary tale about control variables in IV estimation. Oxford Bulletin of Economics and Statistics, 79(3), 411-425.
  • Dulger, I. (2004, May). Türkiye: Rapid coverage for compulsory education–the 1997 basic education program. In Scaling up poverty reduction: A global learning process and conference, Shanghai (pp. 25-27).
  • Dursun, B., & Cesur, R. (2016). Transforming lives: the impact of compulsory schooling on hope and happiness. Journal of Population Economics, 29, 911-956.
  • Dursun, B., Cesur, R., & Mocan, N. (2018). The impact of education on health outcomes and behaviors in a middle-income, low-education country. Economics & Human Biology, 31, 94-114.
  • Fischer, M., Karlsson, M., Nilsson, T., and Schwarz, N. (2016). The sooner the better? compulsory schooling reforms in Sweden.
  • Goldin, C. (2024). Human capital. In Handbook of cliometrics (pp. 353-383). Cham: Springer International Publishing.
  • Gunderson, M., and Oreopolous, P. (2020). Returns to education in developed countries. In The economics of education (pp. 39-51). Academic Press.
  • Heckman, J. J., Humphries, J. E., & Veramendi, G. (2018). Returns to education: The causal effects of education on earnings, health, and smoking. Journal of Political Economy, 126(S1), S197-S246.
  • Imbens, G., & Angrist, J. (1994). Estimation and identification of local average treatment effects. Econometrica, 62, 467-475.
  • Kong, D., Zhang, B., and Zhang, J. (2022). Higher education and corporate innovation. Journal of Corporate Finance, 72, 102165.
  • Lacuesta, A., Puente, S., and Villanueva, E. (2020). The schooling response to a sustained increase in low-skill wages: evidence from Spain 1989–2009. SERIEs, 11, 457-499.
  • Lauder, H., and Mayhew, K. (2020). Higher education and the labour market: an introduction. Oxford Review of Education, 46(1), 1-9.
  • Mocan, L. (2014). The impact of education on wages: analysis of an education reform in Türkiye. Available at SSRN 2537472.
  • Mogstad, M., Torgovitsky, A., and Walters, C. R. (2021). The causal interpretation of two-stage least squares with multiple instrumental variables. American Economic Review, 111(11), 3663-3698.
  • Özer, M., Fidrmuc, J., and Eryurt, M. A. (2018). Maternal education and childhood immunization in Türkiye. Health economics, 27(8), 1218-1229.
  • Özer, M., Fidrmuc, J., and Eryurt, M. A. (2023). Education and domestic violence: Evidence from a natural experiment in Türkiye. Kyklos, 76(3), 436-460.
  • Özer, M., Fidrmuc, J., Mentzakis, E., and Özkan, Ö. (2024). Does education affect religiosity? Causal evidence from a conservative emerging economy. CESifo Economic Studies, 70(1), 34-50.
  • Patrinos, H. A., Psacharopoulos, G., & Tansel, A. (2021). Private and social returns to investment in education: the case of Turkey with alternative methods. Applied Economics, 53(14), 1638-1658.
  • Scheld, J. (2019). Education decisions and labour market outcomes. Applied Economics, 51(9), 911-940. Sloane, C. M., Hurst, E. G., and Black, D. A. (2021). College majors, occupations, and the gender wage gap. Journal of Economic Perspectives, 35(4), 223-248.
  • Strawiński, P., and Broniatowska, P. (2024). The impact of prolonging compulsory general education on the labour market. Educational Studies, 50(4), 413-433.
  • Tan, H., Luo, J., and Zhang, M. (2020). Higher education, happiness, and residents' health. Frontiers in Psychology, 11, 1669.
  • Tansel, A., and Bodur, F. B. (2012). Wage inequality and returns to education in Türkiye: A quantile regression analysis. Review of Development Economics, 16(1), 107-121.
  • Torun, H. (2018). Compulsory schooling and early labor market outcomes in a middle-income country. Journal of Labor Research, 39, 277-305.

Türkiye'de 1997 Zorunlu Eğitim Reformunun Ekonomik Etkileri: Yeni Bulgular ve İstihdam Üzerine Analizler

Year 2024, Volume: 10 Issue: 2, 407 - 420, 15.10.2024
https://doi.org/10.20979/ueyd.1515537

Abstract

Bu çalışma, Türkiye'nin 1997 yılında zorunlu eğitim süresini beş yıldan sekiz yıla çıkaran zorunlu eğitim reformunun ekonomik etkilerini araştırmaktadır. Yedinci dalga Dünya Değerler Anketi verilerini kullanarak ve İki Aşamalı En Küçük Kareler (2SLS) tahmin yöntemiyle yapılan araç değişken (IV) yaklaşımını kullanarak, reformun sonuçlarına dair yeni iç görüler sunmaktadır. Bulgular, reformun eğitim düzeyini önemli ölçüde artırdığını ve cinsiyet farkını azalttığını göstermektedir. Ancak, beklenen ekonomik faydalar sınırlı kalmıştır; etkilenen gruplar arasında işsizlik oranları daha yüksek ve yüksek vasıflı işlerde çalışma olasılığı daha düşüktür. Ayrıca, reformdan etkilenenler, ebeveynlerine kıyasla yaşam standartlarında daha düşük algılanan iyileşmeler bildirmiştir. Bu sonuçlar, eğitimin genişlemesinin eğitimli birey arzını artırarak işgücü piyasasında eğitimin genel değerini düşürebileceğini göstermektedir.

Ethical Statement

Bu çalışmanın tüm hazırlanma süreçlerinde etik kurallara uyulduğunu yazarlar beyan eder. Aksi bir durumun tespiti halinde Uluslararası Ekonomi ve Yenilik Dergisi'nin hiçbir sorumluluğu olmayıp, tüm sorumluluk çalışmanın yazarına aittir.

References

  • Adamecz, A. (2023). Longer schooling with grade retention: The effects of increasing the school leaving age on dropping out and labour market success. Economics of Education Review, 97, 102487.
  • Angrist, J. (1991). Instrumental variables estimation of average treatment effects in econometrics and epidemiology (No. w0115). National Bureau of Economic Research.
  • Angrist, J. D. (2001). Estimation of limited dependent variable models with dummy endogenous regressors: Simple strategies for empirical practice. Journal of Business & Economic Statistics, 19(1), 2–28.
  • Angrist, J. D., & Pischke, J. S. (2009). Mostly harmless econometrics: An empiricist's companion. Princeton university press.
  • Akcigit, U., Pearce, J., and Prato, M. (2024). Tapping into talent: Coupling education and innovation policies for economic growth. Review of Economic Studies, rdae047.
  • Andersson, R., Quigley, J. M., and Wilhelmsson, M. (2009). Urbanization, productivity, and innovation: Evidence from investment in higher education. Journal of Urban Economics, 66(1), 2-15.
  • Aydemir, A., and Kirdar, M. G. (2017). Low wage returns to schooling in a developing country: Evidence from a major policy reform in Türkiye. Oxford Bulletin of Economics and Statistics, 79(6), 1046-1086.
  • Barth, E., Kerr, S. P., and Olivetti, C. (2021). The dynamics of gender earnings differentials: Evidence from establishment data. European Economic Review, 134, 103713.
  • Clark, D. (2023). School quality and the return to schooling in Britain: New evidence from a large-scale compulsory schooling reform. Journal of Public Economics, 223, 104902.
  • Choi, B. Y. (2024). Instrumental variable estimation of weighted local average treatment effects. Statistical Papers, 65(2), 737-770.
  • Cortés, P., and Pan, J. (2023). Children and the remaining gender gaps in the labor market. Journal of Economic Literature, 61(4), 1359-1409.
  • Davies, N. M., Dickson, M., Davey Smith, G., Van Den Berg, G. J., and Windmeijer, F. (2018). The causal effects of education on health outcomes in the UK Biobank. Nature human behaviour, 2(2), 117-125.
  • Deuchert, E., & Huber, M. (2017). A cautionary tale about control variables in IV estimation. Oxford Bulletin of Economics and Statistics, 79(3), 411-425.
  • Dulger, I. (2004, May). Türkiye: Rapid coverage for compulsory education–the 1997 basic education program. In Scaling up poverty reduction: A global learning process and conference, Shanghai (pp. 25-27).
  • Dursun, B., & Cesur, R. (2016). Transforming lives: the impact of compulsory schooling on hope and happiness. Journal of Population Economics, 29, 911-956.
  • Dursun, B., Cesur, R., & Mocan, N. (2018). The impact of education on health outcomes and behaviors in a middle-income, low-education country. Economics & Human Biology, 31, 94-114.
  • Fischer, M., Karlsson, M., Nilsson, T., and Schwarz, N. (2016). The sooner the better? compulsory schooling reforms in Sweden.
  • Goldin, C. (2024). Human capital. In Handbook of cliometrics (pp. 353-383). Cham: Springer International Publishing.
  • Gunderson, M., and Oreopolous, P. (2020). Returns to education in developed countries. In The economics of education (pp. 39-51). Academic Press.
  • Heckman, J. J., Humphries, J. E., & Veramendi, G. (2018). Returns to education: The causal effects of education on earnings, health, and smoking. Journal of Political Economy, 126(S1), S197-S246.
  • Imbens, G., & Angrist, J. (1994). Estimation and identification of local average treatment effects. Econometrica, 62, 467-475.
  • Kong, D., Zhang, B., and Zhang, J. (2022). Higher education and corporate innovation. Journal of Corporate Finance, 72, 102165.
  • Lacuesta, A., Puente, S., and Villanueva, E. (2020). The schooling response to a sustained increase in low-skill wages: evidence from Spain 1989–2009. SERIEs, 11, 457-499.
  • Lauder, H., and Mayhew, K. (2020). Higher education and the labour market: an introduction. Oxford Review of Education, 46(1), 1-9.
  • Mocan, L. (2014). The impact of education on wages: analysis of an education reform in Türkiye. Available at SSRN 2537472.
  • Mogstad, M., Torgovitsky, A., and Walters, C. R. (2021). The causal interpretation of two-stage least squares with multiple instrumental variables. American Economic Review, 111(11), 3663-3698.
  • Özer, M., Fidrmuc, J., and Eryurt, M. A. (2018). Maternal education and childhood immunization in Türkiye. Health economics, 27(8), 1218-1229.
  • Özer, M., Fidrmuc, J., and Eryurt, M. A. (2023). Education and domestic violence: Evidence from a natural experiment in Türkiye. Kyklos, 76(3), 436-460.
  • Özer, M., Fidrmuc, J., Mentzakis, E., and Özkan, Ö. (2024). Does education affect religiosity? Causal evidence from a conservative emerging economy. CESifo Economic Studies, 70(1), 34-50.
  • Patrinos, H. A., Psacharopoulos, G., & Tansel, A. (2021). Private and social returns to investment in education: the case of Turkey with alternative methods. Applied Economics, 53(14), 1638-1658.
  • Scheld, J. (2019). Education decisions and labour market outcomes. Applied Economics, 51(9), 911-940. Sloane, C. M., Hurst, E. G., and Black, D. A. (2021). College majors, occupations, and the gender wage gap. Journal of Economic Perspectives, 35(4), 223-248.
  • Strawiński, P., and Broniatowska, P. (2024). The impact of prolonging compulsory general education on the labour market. Educational Studies, 50(4), 413-433.
  • Tan, H., Luo, J., and Zhang, M. (2020). Higher education, happiness, and residents' health. Frontiers in Psychology, 11, 1669.
  • Tansel, A., and Bodur, F. B. (2012). Wage inequality and returns to education in Türkiye: A quantile regression analysis. Review of Development Economics, 16(1), 107-121.
  • Torun, H. (2018). Compulsory schooling and early labor market outcomes in a middle-income country. Journal of Labor Research, 39, 277-305.
There are 35 citations in total.

Details

Primary Language English
Subjects Applied Microeconometrics, Cross-Sectional Analysis, Developmental Economy - Micro
Journal Section Research Articles
Authors

Özcan Özkan 0000-0002-8170-0556

Early Pub Date October 3, 2024
Publication Date October 15, 2024
Submission Date July 13, 2024
Acceptance Date September 8, 2024
Published in Issue Year 2024 Volume: 10 Issue: 2

Cite

APA Özkan, Ö. (2024). Economic Impacts of the 1997 Compulsory Education Reform in Türkiye: New Findings and Employment Analysis. Uluslararası Ekonomi Ve Yenilik Dergisi, 10(2), 407-420. https://doi.org/10.20979/ueyd.1515537

International Journal of Economics and Innovation

Karadeniz Technical University, Department of Economics, 61080, Trabzon/Türkiye
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