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Determinants of education expenditures
and private vs. public divide in
educational outcomes in Turkey
Elif Öznur Acar, Cankaya University
Seyit Mümin Cilasun , Atilim University
Burak Günalp, Hacettepe University
July 26, 2015
ERF, Cairo
1.Introduction
Turkey has a demographic window of opportunity
• working age population will rise until 2040s.
• absorbing the new entrants into the labor market
• high-quality education became crucial
Turkey’s educational outlook is still bleak
• Average years of schooling is 7 years
• Low enrollment rates, but climbed rapidly after 1997
• Poor PISA performance
• Equity issues in access to education
2
Chapter 1: IntroductionDeterminants of education expenditures in Turkey Introduction
Turkey’s topmost challenge improve quality & equity of
education system, which requires more/better investment.
Public spending on education has been rising
• % of education expenditures rose from 6.5 % in 2002 to 9 % in 2012
• 16.5 million students enrolled in primary and secondary education
• extension the years of compulsory education after 1997
Private out of pocket spending on education has also grew
• education in hh’ expenditures rose from 2% in 2003 to 2.4% in 2012.
• students attending private schools doubled from 1.7% to 3.3%
• private schools rose from 2.7% to 6.5% over 2002-2011 period.
• private schooling could aggravate the already low levels of
intergenerational mobility in education and income
3
Chapter 1: IntroductionDeterminants of education expenditures in Turkey Introduction
Motivation, method and contributions
• Motivation
• To investigate the determinants of household expenditures
• To see whether income elasticity of education expenditures changed
• Method
– 2003, 2007, 2012 Household Budget Survey data
– Tobit regression of education expenditures by income groups using a
# of household characteristics
• Contribution
• Focus on demand for education, determinants of educ. expenditures
• Adds to the limited literature on Turkey
• Use Tobit model which considers possible left-censoring in the data
4
Determinants of education expenditures in Turkey Motivation, methodolgy and contributions
2. Overview of Education Policies in Turkey
5
Determinants of education expenditures in Turkey Overview of Education Policies in Turkey
0
10
20
30
40
50
60
70
80
90
100
0
10
20
30
40
50
60
Population(million)
Fertilityandmortalityrates
(per1000people)
Population
Fertility rate
Mortality rate
0
20
40
60
80
100
Dependency rate (% of working age population)Fertility and mortality rates, population
• Youthful population of 77.7 m with 24.3 percent of its people <15 years old
• Undergoing a demographic transition process
• Potential for demographic dividend between 2005 and 2040
6
Determinants of education expenditures in Turkey Overview of Education Policies in Turkey
37
32
29
28 36
35
24
43
38
48
17
45
65
42
21
42
44
30
22
16
20
40
15
43
58
14
19
19
28
21
47
23
62
58
12
46
10
28
10
389
8
60
64 26
15
20
72
44
52
20
18
14
18
41
51
43
13
41
37
43
36
7
27
37
53
36
72
36
27
40
25
36
10
41
39
42
34
35
23
37
34
16
24
19
62
60
3344
16
35
40
4322
41
23
20
42
21
TertiaryUpper secondary or post-secondary non-tertiaryBelow upper secondary
2
58
44
52
29
45
44
64
42
35
6 30
7
6
12
65
6
11
Slovenia
Netherlands
Finland
Korea
Belgium
Slovak Republic
Czech Republic
Ireland
Sweden
Canada
France
Denmark
Austria
United States
United Kingdom
Luxembourg
Germany
OECD - Average
Norway
Hungary
Israel
Australia
Switzerland
Poland
Estonia
New Zealand
Iceland
Portugal
Mexico
Italy
31
Spain
14
Greece
Turkey
45
41
43
25
41
23
18
47
43
40
25
67
21
37
41
23
33
39
29
16
39
41
50
27
44
35
52 22
9
24
31
40
51
13 57
37
30
6
45
14
9
39
43
9
47
45
40
15
27
10
57
52
46
47
17 43
48
36
38
14 38
13
40
36 51
18 41
18 47
15
31
25
56
11
13
46
48
64
42
25-64 year-olds 25-34 year-olds
7
Determinants of education expenditures in Turkey Overview of Education Policies in Turkey
• Turkish modernization: state-centric educational project
– The Law for the Unification of Education, 1924
• Compulsory primary education from 5 to 8 years, 1997
– to enhance education opportunities for all children
• Decentralization reform, 2004
– local authorities given increased roles and responsibilities
• “Constructivist education reform”, 2005
– extension of the secondary school from 3 to 4 years
– implementation of a new curriculum for elementary education
– net schooling rate in primary education: 98.7% in 2011-2012
– net enrollment rate for secondary education increased
• “4+4+4 Law”, 2012
– compulsory education is extended to 12 years, 3 levels of 4 years
– students can enter technical or vocational schools in 5th grade
– age of entry to primary school is lowered to 66 months
• Critical challenges await on quality and equity issues
8
Determinants of education expenditures in Turkey Overview of Education Policies in Turkey
63
66
69
53
42
47
51
29
3538
46
21
0
10
20
30
40
50
60
70
AverageScienceReading Math
2003 2009 2012
430 427
451 452
415
421
440 444
505
500 501 499
495
489 490 489
400
420
440
460
480
500
520
2003 2006 2009 2012
TR-Boys TR-Girls
OECD Average-Boys OECD Average-Girls
423 424
445
448
441
447
464
475
454
463
400
410
420
430
440
450
460
470
480
2003 2006 2009 2012
Math Reading Science
Mean PISA scores in Turkey, by test
Mean PISA scores, by genderGap between Turkey and OECD average
Note: 40 points in PISA are equivalent one school year
52.2 52.1
42.1 42
36.8
32.2
24.5
21.6
46.6
30
26.4
10
15
20
25
30
35
40
45
50
55
60
2003 2006 2009 2012
Math Reading Science
Share of low achievers ( Below Level 2)
in Turkey%
GapinPISApointswithOECD
• Inequalities between social groups in academic achievement
9
Determinants of education expenditures in Turkey Overview of Education Policies in Turkey
511
443
420
405
387
514
467
451
435
408
536
503
488
463
443
350
400
450
500
550
3
93 points
1 542
124 points
2003
2012
2009
Averagescore(alldisciplines)
Household income quintiles
25
27
11
16
16
20
3843
49
59 21
27
29
22
19 21
10
8
6
16
6
Below Level 2
21
100%
4
Level 4
3
Level 3
1
Level 5 and 6
2
100%
Level 2
100% 100%
4
100%
5
4
Household income quintiles
b. Distribution of students among math qualification levels
according to socio-economic status in Turkey
a. Average student performance and
socio-economic status in Turkey
• Low intergenerational mobility in education
10
Determinants of education expenditures in Turkey Overview of Education Policies in Turkey
9
9
50
27
Luxembourg
37
21
OECDaverage
13
41
5151
48
28
Belgium
Greece
46
Canada
13
46
36
19
CzechRepublic49
41
Denmark
48
40
47
24
12
UnitedKingdom
6
47
45 39
49
126
49
6
45
Spain
49
Italy
53
5
Sweden
Ireland
Poland
Status quo
Downward mobility
45
15 5
57
38 40
3
64
42
Upward mobility
33
Netherlands
45
45
Iceland
39
49
45
6
45 45
17
France
10
Australia42
Hungary
26
29
Norway
53
20
27
57
31
1414
56 59
NewZealand
22
Slovenia
26
Switzerland
27
Germany
18
59
Estonia
16
55
25
22
Finland
Austria
18
100%
UnitedStates
77
Turkey
22
60
SlovakRepublic
31
66
Portugal
59
38 6
19
3
3
11
Determinants of education expenditures in Turkey Overview of Education Policies in Turkey
• Education expenditures increased both in absolute terms
and as a share of central government budget since 2003
• Most was spent on building schools and classrooms
• Still, education expenditure per student both in primary
and secondary level are lower than the OECD average.
• The share of private sources in education expenditures is
higher than most OECD countries.
• The high share of private sources in total education
expenditures is due to the dual institutional structure
– public schools vs. private schools and dershanes
– # of students attending private schools in total has increased from
231,000 in 2003 to 651 in 2014
3. Survey of Literature
• Psacharopoulos, Arieira and Mattson (1997)
• Kanellopoulos and Psacharopoulos (1997); Psacharopoulos
and Papakonstantinou (2005)
• Hashimoto and Health (1995)
• Qian and Smyth (2011)
• Glewwe and Patrinos (1999); Glewwe and Jacoby (2004);
Huy (2012)
• Tansel (2002); Tansel and Bircan (2006); Smits and Hoşgör
(2006); Hisarcıklılar, McKay and Wright (2010)
12
Survey of LiteratureDeterminants of education expenditures in Turkey
4. Data and Model
• 2003, 2007 and 2012 Turkish Household Budget Survey
• Model captures 3 types of variables
– household heads (age, educational, employment status)
– household characteristics (size, location)
– students in households (% of primary school, % of female)
• We estimate separate regressions for income quartiles.
• We use Tobit estimation analysis
13
Determinants of education expenditures in Turkey Data and Model
Conceptual Framework
• Benson (1961) :the income elasticity of education is
– between zero and one for low- and high-income households,
– greater than one for middle income households.
• Educational background of the household head, (EDUC)
– below primary (base), primary, secondary, high school, university
• Multiple generations live in the same household, (HHS)
• Expenditures at different stages of education (SHRPS)
• Different attitudes in rural and urban areas (RURAL)
• Negative attitude towards girls’ (SHRFS), (RURALF)
• Control for the total # of students in the household (NS)
14
Determinants of education expenditures in Turkey
Turkey
Data and Model
15
Determinants of education expenditures in Turkey
Turkey
Summary Statistics
Data and Model
2003 2007 2012
Variable 1st Q 2nd Q 3rd Q 4th Q 1st Q 2nd Q 3rd Q 4th Q 1st Q 2nd Q 3rd Q 4th Q
reeleducexp 44.90 93.06 186.88 542.56 68.48 205.24 328.29 947.31 114.72 201.16 335.25 1131.41
reely 2444.06 4271.59 6594.85 15334.93 4081.18 7410.28 11280.32 22427.89 4677.02 8095.98 12237.35 25977.23
educd1 0.19 0.10 0.07 0.04 0.25 0.09 0.04 0.04 0.19 0.09 0.04 0.03
educd2 0.65 0.59 0.46 0.33 0.59 0.59 0.48 0.33 0.59 0.52 0.41 0.23
educd3 0.09 0.13 0.13 0.10 0.08 0.12 0.12 0.10 0.11 0.15 0.13 0.09
educd4 0.07 0.15 0.23 0.26 0.07 0.16 0.23 0.27 0.10 0.19 0.25 0.22
educd5 0.00 0.02 0.10 0.27 0.01 0.03 0.13 0.26 0.01 0.05 0.16 0.42
age 41.74 43.26 44.04 45.09 42.32 43.61 44.36 44.71 44.02 44.11 45.10 45.24
emp 0.77 0.76 0.81 0.84 0.75 0.78 0.80 0.84 0.71 0.77 0.80 0.84
hhsize 5.28 4.99 4.90 4.80 5.22 4.89 4.66 4.61 4.61 4.43 4.29 4.26
primshare 0.83 0.78 0.74 0.71 0.87 0.79 0.74 0.70 0.76 0.72 0.65 0.66
rural 0.39 0.31 0.23 0.19 0.48 0.34 0.22 0.14 0.44 0.30 0.25 0.16
girlshare 0.39 0.36 0.35 0.34 0.45 0.47 0.48 0.46 0.45 0.47 0.48 0.47
totalstu 1.61 1.47 1.36 1.21 1.78 1.55 1.37 1.21 1.64 1.47 1.27 1.10
5.Estimation Results
• lnINC is significant for all years and income quartiles
– a peak in the middle income quartiles and a decrease at both ends
of the income distribution
• For the 1st quartile, H0: ε=1 is rejected at the 5 % level of
significance in 2003 and 2007, not in 2012.
• For the 2nd quartile, ε >1 for all years.
• For the 3rd quartile, ε is not significantly different from 1 in
2003 and 2007, and statistically insignificant in 2012.
• For the 4th quartile, ε is not different from one in 2003 and
2007, while for 2012 it is statistically significantly >1
16
Determinants of education expenditures in Turkey
Turkey
Estimation Results
• Income elasticity of education increases over time for all.
• Head’s education has an increasingly positive effect
– For the upper middle income and the top income quartiles, the
coefficients of EDUCD4 and EDUCD5 are always significant
– for the 2nd quartile in 2007, all households with a graduate head
spend more than households whose heads lack a diploma
– in all income quartiles in 2012, household heads with a high-school
degree invest more in education than those without any education
• HHS is highly significantly negative in all estimations.
• SHRPS is insignificant in almost all estimations.
• Households in the urban areas spend more on education
than those in the rural areas in 2003.
– In 2007, this finding weakens and holds only for lower-income
families; and in 2012, the coefficient of RURAL turns out to be
insignificant for all income quartiles
17
Determinants of education expenditures in Turkey
Turkey
Estimation Results
Questions?
18

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Determinants of education expenditures and private vs. public divide in educational outcomes in Turkey

  • 1. Determinants of education expenditures and private vs. public divide in educational outcomes in Turkey Elif Öznur Acar, Cankaya University Seyit Mümin Cilasun , Atilim University Burak Günalp, Hacettepe University July 26, 2015 ERF, Cairo
  • 2. 1.Introduction Turkey has a demographic window of opportunity • working age population will rise until 2040s. • absorbing the new entrants into the labor market • high-quality education became crucial Turkey’s educational outlook is still bleak • Average years of schooling is 7 years • Low enrollment rates, but climbed rapidly after 1997 • Poor PISA performance • Equity issues in access to education 2 Chapter 1: IntroductionDeterminants of education expenditures in Turkey Introduction
  • 3. Turkey’s topmost challenge improve quality & equity of education system, which requires more/better investment. Public spending on education has been rising • % of education expenditures rose from 6.5 % in 2002 to 9 % in 2012 • 16.5 million students enrolled in primary and secondary education • extension the years of compulsory education after 1997 Private out of pocket spending on education has also grew • education in hh’ expenditures rose from 2% in 2003 to 2.4% in 2012. • students attending private schools doubled from 1.7% to 3.3% • private schools rose from 2.7% to 6.5% over 2002-2011 period. • private schooling could aggravate the already low levels of intergenerational mobility in education and income 3 Chapter 1: IntroductionDeterminants of education expenditures in Turkey Introduction
  • 4. Motivation, method and contributions • Motivation • To investigate the determinants of household expenditures • To see whether income elasticity of education expenditures changed • Method – 2003, 2007, 2012 Household Budget Survey data – Tobit regression of education expenditures by income groups using a # of household characteristics • Contribution • Focus on demand for education, determinants of educ. expenditures • Adds to the limited literature on Turkey • Use Tobit model which considers possible left-censoring in the data 4 Determinants of education expenditures in Turkey Motivation, methodolgy and contributions
  • 5. 2. Overview of Education Policies in Turkey 5 Determinants of education expenditures in Turkey Overview of Education Policies in Turkey 0 10 20 30 40 50 60 70 80 90 100 0 10 20 30 40 50 60 Population(million) Fertilityandmortalityrates (per1000people) Population Fertility rate Mortality rate 0 20 40 60 80 100 Dependency rate (% of working age population)Fertility and mortality rates, population • Youthful population of 77.7 m with 24.3 percent of its people <15 years old • Undergoing a demographic transition process • Potential for demographic dividend between 2005 and 2040
  • 6. 6 Determinants of education expenditures in Turkey Overview of Education Policies in Turkey 37 32 29 28 36 35 24 43 38 48 17 45 65 42 21 42 44 30 22 16 20 40 15 43 58 14 19 19 28 21 47 23 62 58 12 46 10 28 10 389 8 60 64 26 15 20 72 44 52 20 18 14 18 41 51 43 13 41 37 43 36 7 27 37 53 36 72 36 27 40 25 36 10 41 39 42 34 35 23 37 34 16 24 19 62 60 3344 16 35 40 4322 41 23 20 42 21 TertiaryUpper secondary or post-secondary non-tertiaryBelow upper secondary 2 58 44 52 29 45 44 64 42 35 6 30 7 6 12 65 6 11 Slovenia Netherlands Finland Korea Belgium Slovak Republic Czech Republic Ireland Sweden Canada France Denmark Austria United States United Kingdom Luxembourg Germany OECD - Average Norway Hungary Israel Australia Switzerland Poland Estonia New Zealand Iceland Portugal Mexico Italy 31 Spain 14 Greece Turkey 45 41 43 25 41 23 18 47 43 40 25 67 21 37 41 23 33 39 29 16 39 41 50 27 44 35 52 22 9 24 31 40 51 13 57 37 30 6 45 14 9 39 43 9 47 45 40 15 27 10 57 52 46 47 17 43 48 36 38 14 38 13 40 36 51 18 41 18 47 15 31 25 56 11 13 46 48 64 42 25-64 year-olds 25-34 year-olds
  • 7. 7 Determinants of education expenditures in Turkey Overview of Education Policies in Turkey • Turkish modernization: state-centric educational project – The Law for the Unification of Education, 1924 • Compulsory primary education from 5 to 8 years, 1997 – to enhance education opportunities for all children • Decentralization reform, 2004 – local authorities given increased roles and responsibilities • “Constructivist education reform”, 2005 – extension of the secondary school from 3 to 4 years – implementation of a new curriculum for elementary education – net schooling rate in primary education: 98.7% in 2011-2012 – net enrollment rate for secondary education increased • “4+4+4 Law”, 2012 – compulsory education is extended to 12 years, 3 levels of 4 years – students can enter technical or vocational schools in 5th grade – age of entry to primary school is lowered to 66 months
  • 8. • Critical challenges await on quality and equity issues 8 Determinants of education expenditures in Turkey Overview of Education Policies in Turkey 63 66 69 53 42 47 51 29 3538 46 21 0 10 20 30 40 50 60 70 AverageScienceReading Math 2003 2009 2012 430 427 451 452 415 421 440 444 505 500 501 499 495 489 490 489 400 420 440 460 480 500 520 2003 2006 2009 2012 TR-Boys TR-Girls OECD Average-Boys OECD Average-Girls 423 424 445 448 441 447 464 475 454 463 400 410 420 430 440 450 460 470 480 2003 2006 2009 2012 Math Reading Science Mean PISA scores in Turkey, by test Mean PISA scores, by genderGap between Turkey and OECD average Note: 40 points in PISA are equivalent one school year 52.2 52.1 42.1 42 36.8 32.2 24.5 21.6 46.6 30 26.4 10 15 20 25 30 35 40 45 50 55 60 2003 2006 2009 2012 Math Reading Science Share of low achievers ( Below Level 2) in Turkey% GapinPISApointswithOECD
  • 9. • Inequalities between social groups in academic achievement 9 Determinants of education expenditures in Turkey Overview of Education Policies in Turkey 511 443 420 405 387 514 467 451 435 408 536 503 488 463 443 350 400 450 500 550 3 93 points 1 542 124 points 2003 2012 2009 Averagescore(alldisciplines) Household income quintiles 25 27 11 16 16 20 3843 49 59 21 27 29 22 19 21 10 8 6 16 6 Below Level 2 21 100% 4 Level 4 3 Level 3 1 Level 5 and 6 2 100% Level 2 100% 100% 4 100% 5 4 Household income quintiles b. Distribution of students among math qualification levels according to socio-economic status in Turkey a. Average student performance and socio-economic status in Turkey
  • 10. • Low intergenerational mobility in education 10 Determinants of education expenditures in Turkey Overview of Education Policies in Turkey 9 9 50 27 Luxembourg 37 21 OECDaverage 13 41 5151 48 28 Belgium Greece 46 Canada 13 46 36 19 CzechRepublic49 41 Denmark 48 40 47 24 12 UnitedKingdom 6 47 45 39 49 126 49 6 45 Spain 49 Italy 53 5 Sweden Ireland Poland Status quo Downward mobility 45 15 5 57 38 40 3 64 42 Upward mobility 33 Netherlands 45 45 Iceland 39 49 45 6 45 45 17 France 10 Australia42 Hungary 26 29 Norway 53 20 27 57 31 1414 56 59 NewZealand 22 Slovenia 26 Switzerland 27 Germany 18 59 Estonia 16 55 25 22 Finland Austria 18 100% UnitedStates 77 Turkey 22 60 SlovakRepublic 31 66 Portugal 59 38 6 19 3 3
  • 11. 11 Determinants of education expenditures in Turkey Overview of Education Policies in Turkey • Education expenditures increased both in absolute terms and as a share of central government budget since 2003 • Most was spent on building schools and classrooms • Still, education expenditure per student both in primary and secondary level are lower than the OECD average. • The share of private sources in education expenditures is higher than most OECD countries. • The high share of private sources in total education expenditures is due to the dual institutional structure – public schools vs. private schools and dershanes – # of students attending private schools in total has increased from 231,000 in 2003 to 651 in 2014
  • 12. 3. Survey of Literature • Psacharopoulos, Arieira and Mattson (1997) • Kanellopoulos and Psacharopoulos (1997); Psacharopoulos and Papakonstantinou (2005) • Hashimoto and Health (1995) • Qian and Smyth (2011) • Glewwe and Patrinos (1999); Glewwe and Jacoby (2004); Huy (2012) • Tansel (2002); Tansel and Bircan (2006); Smits and Hoşgör (2006); Hisarcıklılar, McKay and Wright (2010) 12 Survey of LiteratureDeterminants of education expenditures in Turkey
  • 13. 4. Data and Model • 2003, 2007 and 2012 Turkish Household Budget Survey • Model captures 3 types of variables – household heads (age, educational, employment status) – household characteristics (size, location) – students in households (% of primary school, % of female) • We estimate separate regressions for income quartiles. • We use Tobit estimation analysis 13 Determinants of education expenditures in Turkey Data and Model
  • 14. Conceptual Framework • Benson (1961) :the income elasticity of education is – between zero and one for low- and high-income households, – greater than one for middle income households. • Educational background of the household head, (EDUC) – below primary (base), primary, secondary, high school, university • Multiple generations live in the same household, (HHS) • Expenditures at different stages of education (SHRPS) • Different attitudes in rural and urban areas (RURAL) • Negative attitude towards girls’ (SHRFS), (RURALF) • Control for the total # of students in the household (NS) 14 Determinants of education expenditures in Turkey Turkey Data and Model
  • 15. 15 Determinants of education expenditures in Turkey Turkey Summary Statistics Data and Model 2003 2007 2012 Variable 1st Q 2nd Q 3rd Q 4th Q 1st Q 2nd Q 3rd Q 4th Q 1st Q 2nd Q 3rd Q 4th Q reeleducexp 44.90 93.06 186.88 542.56 68.48 205.24 328.29 947.31 114.72 201.16 335.25 1131.41 reely 2444.06 4271.59 6594.85 15334.93 4081.18 7410.28 11280.32 22427.89 4677.02 8095.98 12237.35 25977.23 educd1 0.19 0.10 0.07 0.04 0.25 0.09 0.04 0.04 0.19 0.09 0.04 0.03 educd2 0.65 0.59 0.46 0.33 0.59 0.59 0.48 0.33 0.59 0.52 0.41 0.23 educd3 0.09 0.13 0.13 0.10 0.08 0.12 0.12 0.10 0.11 0.15 0.13 0.09 educd4 0.07 0.15 0.23 0.26 0.07 0.16 0.23 0.27 0.10 0.19 0.25 0.22 educd5 0.00 0.02 0.10 0.27 0.01 0.03 0.13 0.26 0.01 0.05 0.16 0.42 age 41.74 43.26 44.04 45.09 42.32 43.61 44.36 44.71 44.02 44.11 45.10 45.24 emp 0.77 0.76 0.81 0.84 0.75 0.78 0.80 0.84 0.71 0.77 0.80 0.84 hhsize 5.28 4.99 4.90 4.80 5.22 4.89 4.66 4.61 4.61 4.43 4.29 4.26 primshare 0.83 0.78 0.74 0.71 0.87 0.79 0.74 0.70 0.76 0.72 0.65 0.66 rural 0.39 0.31 0.23 0.19 0.48 0.34 0.22 0.14 0.44 0.30 0.25 0.16 girlshare 0.39 0.36 0.35 0.34 0.45 0.47 0.48 0.46 0.45 0.47 0.48 0.47 totalstu 1.61 1.47 1.36 1.21 1.78 1.55 1.37 1.21 1.64 1.47 1.27 1.10
  • 16. 5.Estimation Results • lnINC is significant for all years and income quartiles – a peak in the middle income quartiles and a decrease at both ends of the income distribution • For the 1st quartile, H0: ε=1 is rejected at the 5 % level of significance in 2003 and 2007, not in 2012. • For the 2nd quartile, ε >1 for all years. • For the 3rd quartile, ε is not significantly different from 1 in 2003 and 2007, and statistically insignificant in 2012. • For the 4th quartile, ε is not different from one in 2003 and 2007, while for 2012 it is statistically significantly >1 16 Determinants of education expenditures in Turkey Turkey Estimation Results
  • 17. • Income elasticity of education increases over time for all. • Head’s education has an increasingly positive effect – For the upper middle income and the top income quartiles, the coefficients of EDUCD4 and EDUCD5 are always significant – for the 2nd quartile in 2007, all households with a graduate head spend more than households whose heads lack a diploma – in all income quartiles in 2012, household heads with a high-school degree invest more in education than those without any education • HHS is highly significantly negative in all estimations. • SHRPS is insignificant in almost all estimations. • Households in the urban areas spend more on education than those in the rural areas in 2003. – In 2007, this finding weakens and holds only for lower-income families; and in 2012, the coefficient of RURAL turns out to be insignificant for all income quartiles 17 Determinants of education expenditures in Turkey Turkey Estimation Results