ECONOMICS OF EDUCATION IN TURKEY AHMET Ş EVK İ SOYDAN ASSEM KYSSYKOVA CEVAT ERK İ BA Ş HAKKI SEM İ H KOKULAR MERVE ÇELEB İ SEMRA ÇA Ğ AN

Outline  General Information and Statistics About Education in Turkey  Education Spending  Impact of Education on Turkish Economy

Education  an essential tool to promote economic development  development of human capital  development of economic growth  improving skills  increasing productivity

Three Important Milestones of Turkish Education  The Law on Unification of Education (1924)  Alphabet Reform (1928)  Village Institutes (1940s)

The Law on Unification of Education (1924)

The Law on Unification of Education  The unification in the educational system was brought about by the acceptance of “Law of Unification of Education” in the Parliament on March 3,  The aim was to get rid of the duality in the system continued to exist during the initial period of the Republican Era.

Alphabet Reform (1928) At the time of Alphabet Reform:  Population: 14 million  Only a little more than 1 million could read (% 7.9)  Over 80 per cent of the population was living in villages  There were about 3,200 primary schools, with 5,600 primary teachers

 It was crucial to have a modern and easy alphabet to increase the literacy rate of the population and to integrate with the West  As a result; Arabic alphabet was replaced with Latin alphabet

Village Institutes (1940)

 The main function of the village institutes was to train the primary school teachers  These schools were totally unique to Turkey  They were the cornerstones of the rural development project  Village Institutes were established to meet the need for teachers of each village.  Despite their short life, they highly increased the number of primary schools in the country.

The number of students in the Village Institutes

The number of teachers in the Village Institutes

Educational Statistics

Literacy Rate in Turkey Between

Number of Universities in Turkey (Private vs State)

Education Spending

 Education spending covers expenditure on schools, universities and other public and private educational institutions.  Education spending also includes instruction and ancillary services for students and families provided through educational institutions.

Education Spending – Turkey vs OECD

Education Investment Between

Education spending ( Primary to non-tertiary / Tertiary, US dollars/student, 2012)

What Proportion of National Wealth is Spent on Education ?  The proportion of education expenditure relative to GDP depends on the different preferences of various public and private actors,  Nevertheless, expenditure on education largely comes from public budgets and is closely scrutinized by governments.

Public Expenditure on Education by Countries from 1970 to 2009

Sectoral Distribution of Government Expenditures (1,000 TL)

Spending on R&D  Spending on R&D is one of the most important indicators of conformation and development on science and technology  The share of R&D spending in GDP of Turkey is very low  R&D activities are carried out largely within the frame of private companies and with the cooperation of universities

Gross Domestic Expenditure on R&D as a percentage of GDP

A Comparison of R&D spending

The challenge:  Ensuring effective allocation of funding Recent policies and practices:  The Campaign of 100% Support for Education,  Financial support of private and non-governmental organizations,  100% tax deduction for contributions

Education Projects  Meslek Lisesi Memleket Meselesi (KOÇ)  Kardelenler (Turkcell)  Baba Beni Okula Gönder (Aydın Do ğ an Vakfı)  Ana-kız Okuldayız (M.E.B)

Education & Economic Development

Lucas Model  Y = K a (hL) 1-a  h denotes human capital  Main difference between Solow and Lucas is the increasing returns to scale  In this model the most important part of the human capital is education. Educated citizens will more likely accommodate with new technology and working conditions and make it possible to have an increasing returns to scale  The more education the more human capital the faster growth rate

Employment with respect to Education Level

Education Impact on Women’s Participation  As the education level increases, female labor force participation rate also increases  June 2014, female participation rate: 69,5 (university graduate) female participation rate: 17,4 (illiterate)  Since women mostly work at agricultural sector, rate of unregistered employment is higher than men,  As the female education level increases, labor force participation and employment will increase accordingly

Labor Force Participation Rates by Gender

Education Impact on Women’s Labor Force Participation

Return on Educational Investment

Income Level by Education

References Ta ş, U. & Yenilmez,F.(2007) '' TÜRK İ YE’DE E Ğİ T İ M İ N KALKINMAÜZER İ NDEK İ ROLÜ VE E Ğİ T İ M YATIRIMLARININ GER İ DÖNÜ Ş ORANI'' 5. TUIK, Kazanç Yapısı Ara ş tırması 6. Bahçe ş ehir Üniversitesi Ekonomik ve Toplumsal Ara ş tırmalar Merkezi (BETAM) Ara ş tırma Notu 14/160 Kadın İş Gücü Piyasasında Çarpıcı Geli ş meler, Seyfettin Gürsel, Gökçe Uysal, Ay ş enur Acar 7. T.C Maliye Bakanlı ğ ı Yıllık Ekonomik Rapor SOSYAL VE BE Ş ER İ B İ L İ MLER DERG İ S İ Cilt 1, Sayı 2, 2009 ISSN: (Online) 9. BE Ş ER İ SERMAYEN İ N EKONOM İ K GEL İŞ ME ÜZER İ NDEK İ ETK İ LER İ DÜNYA DENEY İ M İ VE TÜRK İ YE ÜZER İ NE GÖZLEMLER 10. Kadir ESER, Mu ğ la Üniversitesi, İ. İ.B.F. İ ktisat Bölümü, Kötekli Kampüsü, Mu ğ la 11. Çisel EK İ Z GÖKMEN, Mu ğ la Üniversitesi, İ. İ.B.F OECD- Education At a Glance "Türkiye'de E ğ itim Yatırımları ve Ekonomik Büyüme İ li ş kisi"- Doç. Dr. Muharrem Af ş ar, 2009

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