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Higher Education and Unemployment in Turkey: Regional Panel Analysis with Undergraduate, Master's, and PhD Perspectives

Year 2024, , 128 - 136, 22.04.2024
https://doi.org/10.16951/trendbusecon.1473077

Abstract

In the past two decades, Turkey has experienced a noteworthy increase in the establishment of universities and enrollment of students across various degree programs. However, this surge in higher education has been accompanied by a growing number of unemployed higher education graduates. To address this phenomenon, this research conducts a comprehensive analysis of the relationship between different levels of tertiary education, undergraduate, master's, and Ph.D. (Doctorate) and unemployment. The study utilizes TurkStat's regional database, covering data from 26 provinces in Turkey spanning the years 2008 to 2021. Prior to delving into coefficient analysis, the Dumitrescu and Hurlin (2012) panel causality test was applied to identify the direction of potential causality and to establish an accurate model. The findings suggest a potential causal relationship running from being a higher education graduate, at all levels (bachelor's, master's, and PhD ), to unemployment rate. Subsequently, to further scrutinize this relationship in light of causality findings, the Panel Augmented Mean Group estimator (AMG) was employed. The results indicate that a 1% increase in the total number of Bachelor's degree graduates is associated with a 1.16% increase in unemployment rate. Based on these findings, it can be argued that, instead of further investing in higher education, a policy approach targeting middle-skilled jobs through advanced investment in vocational high schools may be more cost-effective.

References

  • Albaladejo, I. P., Brida, J. G., González‐Martínez, M. I., & Segarra, V. (2023). A new look to the tourism and economic growth nexus: A clustering and panel causality analysis. The World Economy, 46(9), 2835-2856.
  • Ali, M., Raza, S. A., & Khamis, B. (2020). Environmental degradation, economic growth, and energy innovation: evidence from European countries. Environmental Science and Pollution Research, 27, 28306-28315.
  • APAYDIN, F. (2018). Türkiye’de İşsizliğin Karakteristiklerinin Karşilaştirmali Analizi. Süleyman Demirel Üniversitesi Sosyal Bilimler Enstitüsü Dergisi, (30), 159-200.
  • Azam, M., & Haseeb, M. (2021). Determinants of foreign direct investment in BRICS-does renewable and non-renewable energy matter?. Energy Strategy Reviews, 35, 100638.
  • Breitung, J. (2005). A parametric approach to the estimation of cointegration vectors in panel data. Econometric Reviews, 24(2), 151-173.
  • Breusch, T. S., & Pagan, A. R. (1980). The Lagrange multiplier test and its applications to model specification in econometrics. The review of economic studies, 47(1), 239-253.
  • Cairó, I., & Cajner, T. (2018). Human capital and unemployment dynamics: Why more educated workers enjoy greater employment stability. The Economic Journal, 128(609), 652-682.
  • Çetin, M. A., & Bakırtaş, İ. (2022). Abant Sosyal Bilimler Dergisi. Journal of Abant Social Sciences, 22(1), 277-292.
  • Dănăcică, D. E., Babucea, A. G., Paliu-Popa, L., Bușan, G., & Chirtoc, I. E. (2023). The Nexus between Higher Education and Unemployment—Evidence from Romania. Sustainability, 15(4), 3641.
  • Dineri, E. (2020). Are Number Of Tourist Arrivals The Driving Force Of Economic Growth in Mediterranean Countries?: Augmented Mean Group Estimator. Kahramanmaraş Sütçü İmam Üniversitesi Sosyal Bilimler Dergisi, 17(2), 987-1006.
  • Dumitrescu, E. I., & Hurlin, C. (2012). Testing for Granger non-causality in heterogeneous panels. Economic modelling, 29(4), 1450-1460.
  • Eberhardt M. &, Teal, F., (2010). Productivity analysis in global manufacturing production.
  • Erdem, E., & Tugcu, C. T. (2012). Higher Education and Unemployment: a cointegration and causality analysis of the case of Turkey. European Journal of Education, 47(2), 299-309.
  • Foley, M. C. (1997). Determinants of unemployment duration in Russia. Center Discussion Paper no. 779. Yale University
  • Goldin, Claudia. 2016. "Human Capital." In Handbook of Cliometrics, ed. Claude Diebolt and Michael Haupert, 55-86. Heidelberg, Germany: Springer Verlag.
  • Günay, D., & Günay, A. (2011). 1933'den Günümüze Türk Yükseköğretiminde Niceliksel Gelişmeler. Yükseköğretim ve Bilim Dergisi, (1), 1-22.
  • Halkos, G. E., & Tsirivis, A. S. (2023). Sustainable Development of the European Electricity Sector: Investigating the Impact of Electricity Price, Market Liberalization and Energy Taxation on RES Deployment. Energies, 16(14), 5567.
  • Hermannsson, K., Scandurra, R., & Graziano, M. (2021). The Effect of Higher Education on Youth Unemployment in European Regions During a Period of Economic Instability. Journal of Education Finance, 46(4), 477-495.
  • Kafkas, E. Timur, (2014), “Avrupa Birliği İşsizlikle Mücadele Stratejisi Işığında Türkiye İçin İşsizlik Sorununda Yeni Bir Paradigma: Çalışma Kredisi”, Çalışma ve Sosyal Güvenlik Bakanlığı Yurtdışı Hizmetleri, Uzmanlık Tezi.
  • Kettunen, J. (1997). Education and unemployment duration. Economics of education review, 16(2), 163-170.
  • Levin, A., Lin, C. F., & Chu, C. S. J. (2002). Unit root tests in panel data: asymptotic and finite-sample properties. Journal of econometrics, 108(1), 1-24.
  • Li, S., Whalley, J., & Xing, C. (2014). China's higher education expansion and unemployment of college graduates. China Economic Review, 30, 567-582.
  • Moreau, M. P., & Leathwood, C. (2006). Graduates' employment and the discourse of employability: a critical analysis. Journal of education and work, 19(4), 305-324.
  • Núñez, I., & Livanos, I. (2010). Higher education and unemployment in Europe: an analysis of the academic subject and national effects. Higher Education, 59, 475-487.
  • Pesaran, M. H. (2004). General diagnostic tests for cross section dependence in panels. Available at SSRN 572504.
  • Pesaran, M. H. (2006). Estimation and inference in large heterogeneous panels with a multifactor error structure. Econometrica, 74(4), 967-1012.
  • Pesaran, M. H. (2007). A simple panel unit root test in the presence of cross‐section dependence. Journal of applied econometrics, 22(2), 265-312.
  • Pesaran, M. H., & Yamagata, T. (2008). Testing slope homogeneity in large panels. Journal of econometrics, 142(1), 50-93.
  • Pesaran, M. H., Ullah, A., & Yamagata, T. (2008). A bias‐adjusted LM test of error cross‐section independence. The econometrics journal, 11(1), 105-127.
  • Qazi, W., Raza, S. A., & Sharif, A. (2017). Higher education development and unemployment in Pakistan: Evidence from structural break testing. Global Business Review, 18(5), 1089-1110.
  • Schomburg, H. (2000). Higher education and graduate employment in Germany. European Journal of Education, 35(2), 189-200.
  • Schumpeter, J. A., (1994). Capitalism, Socialism And Democracy. Routledge. ISBN 0-203-26611-0
  • Shahbaz, M., Shahzad, S. J. H., Mahalik, M. K., & Sadorsky, P. (2018). How strong is the causal relationship between globalization and energy consumption in developed economies? A country-specific time-series and panel analysis. Applied Economics, 50(13), 1479-1494.
  • THEC, Turkish Higher Education Council, https://istatistik.yok.gov.tr/ accessed 02.12.2023
  • Plümper T. & Christina J. Schneider (2007) Too much to die, too little to live: unemployment, higher education policies and university budgets in Germany, Journal of European Public Policy, 14:4, 631-653, DOI: 10.1080/13501760701314458
  • TurkStat, Labor Statistics, https://www.tuik.gov.tr/, Accessed: 02.12.2023
  • Turkstat2, İşgücü İstatistikleri Haber Bülteni, 2022, https://data.tuik.gov.tr/Bulten/Index?p=Isgucu-Istatistikleri-2022-49390 accesed: 04.12.2023
  • Valero, A., & Van Reenen, J. (2019). The economic impact of universities: Evidence from across the globe. Economics of Education Review, 68, 53-67.
  • Westerlund, J. (2005). New simple tests for panel cointegration. Econometric Reviews, 24(3), 297-316.
  • Woodley, A., & Brennan, J. (2000). Higher education and graduate employment in the United Kingdom. European Journal of Education, 35(2), 239-249.
  • Xia, W., Doğan, B., Shahzad, U., Adedoyin, F. F., Popoola, A., & Bashir, M. A. (2022). An empirical investigation of tourism-led growth hypothesis in the european countries: evidence from augmented mean group estimator. Portuguese Economic Journal, 1-28.
  • Xing, C., Yang, P., & Li, Z. (2018). The medium-run effect of China's higher education expansion on the unemployment of college graduates. China Economic Review, 51, 181-193.

Türkiye'de Yükseköğretim ve İşsizlik: Lisans, Yüksek Lisans ve Doktora Düzeyinde Bölgesel Panel Veri Analizi

Year 2024, , 128 - 136, 22.04.2024
https://doi.org/10.16951/trendbusecon.1473077

Abstract

Türkiye’de 2000’li yıllardan itibaren açılmakta olan çok sayıdaki üniversiteyle birlikte yükseköğretimdeki öğrenci ve mezun sayılarında önemli bir artış yaşanmaktadır. Yükseköğrenimdeki bu yükselişin yanında, işsiz yükseköğretim mezunlarının sayısında da önemli bir artış gözlemlenmektedir. Bu olguyla ilgili olarak, bu araştırma yükseköğretimdeki lisans, yüksek lisans ve doktora gibi farklı mezuniyet düzeyleriyle, işsizlik oranı arasındaki ilişkiyi kapsamlı bir şekilde analiz etmektedir. Çalışma, 2008-2021 yıllarını kapsayan TÜİK’in Düzey iki bölgesel veri tabanını kullanmakta ve Türkiye'nin 26 bölgesini içermektedir. Katsayı analizine geçmeden önce potansiyel ilişkinin nedensellik yönünü tespit etmek ve doğru bir model kurabilmek için Dumitrescu ve Hurlin (2012) panel nedensellik testi uygulanmıştır ve bulgular her düzeyde (lisans, yüksek lisans ve doktora) yükseköğretim mezunluğundan işsizlik oranına doğru bir potansiyel nedenselliğe işaret etmektedir. Sonrasında, nedensellik bulguları ışığında bu ilişkiyi daha derinlemesine incelemek için Panel Genişletilmiş Ortalama Grup tahmincisi (AMG) kullanılmıştır. Sonuçlar, Lisans mezunlarının toplam sayısındaki %1'lik bir artışın işsizlik oranındaki %1,16'lık bir artışa neden olabileceğine işaret etmektedir. Bu bulgular temel alındığında, yükseköğretime daha fazla yatırım yapmak yerine, meslek lisesi odaklı ara eleman ve teknik eleman eğitimine yönelen bir politikanın işsizlikle mücadele ve kaynakların verimli kullanımı bağlamında daha etkin olabileceği değerlendirilmektedir.

References

  • Albaladejo, I. P., Brida, J. G., González‐Martínez, M. I., & Segarra, V. (2023). A new look to the tourism and economic growth nexus: A clustering and panel causality analysis. The World Economy, 46(9), 2835-2856.
  • Ali, M., Raza, S. A., & Khamis, B. (2020). Environmental degradation, economic growth, and energy innovation: evidence from European countries. Environmental Science and Pollution Research, 27, 28306-28315.
  • APAYDIN, F. (2018). Türkiye’de İşsizliğin Karakteristiklerinin Karşilaştirmali Analizi. Süleyman Demirel Üniversitesi Sosyal Bilimler Enstitüsü Dergisi, (30), 159-200.
  • Azam, M., & Haseeb, M. (2021). Determinants of foreign direct investment in BRICS-does renewable and non-renewable energy matter?. Energy Strategy Reviews, 35, 100638.
  • Breitung, J. (2005). A parametric approach to the estimation of cointegration vectors in panel data. Econometric Reviews, 24(2), 151-173.
  • Breusch, T. S., & Pagan, A. R. (1980). The Lagrange multiplier test and its applications to model specification in econometrics. The review of economic studies, 47(1), 239-253.
  • Cairó, I., & Cajner, T. (2018). Human capital and unemployment dynamics: Why more educated workers enjoy greater employment stability. The Economic Journal, 128(609), 652-682.
  • Çetin, M. A., & Bakırtaş, İ. (2022). Abant Sosyal Bilimler Dergisi. Journal of Abant Social Sciences, 22(1), 277-292.
  • Dănăcică, D. E., Babucea, A. G., Paliu-Popa, L., Bușan, G., & Chirtoc, I. E. (2023). The Nexus between Higher Education and Unemployment—Evidence from Romania. Sustainability, 15(4), 3641.
  • Dineri, E. (2020). Are Number Of Tourist Arrivals The Driving Force Of Economic Growth in Mediterranean Countries?: Augmented Mean Group Estimator. Kahramanmaraş Sütçü İmam Üniversitesi Sosyal Bilimler Dergisi, 17(2), 987-1006.
  • Dumitrescu, E. I., & Hurlin, C. (2012). Testing for Granger non-causality in heterogeneous panels. Economic modelling, 29(4), 1450-1460.
  • Eberhardt M. &, Teal, F., (2010). Productivity analysis in global manufacturing production.
  • Erdem, E., & Tugcu, C. T. (2012). Higher Education and Unemployment: a cointegration and causality analysis of the case of Turkey. European Journal of Education, 47(2), 299-309.
  • Foley, M. C. (1997). Determinants of unemployment duration in Russia. Center Discussion Paper no. 779. Yale University
  • Goldin, Claudia. 2016. "Human Capital." In Handbook of Cliometrics, ed. Claude Diebolt and Michael Haupert, 55-86. Heidelberg, Germany: Springer Verlag.
  • Günay, D., & Günay, A. (2011). 1933'den Günümüze Türk Yükseköğretiminde Niceliksel Gelişmeler. Yükseköğretim ve Bilim Dergisi, (1), 1-22.
  • Halkos, G. E., & Tsirivis, A. S. (2023). Sustainable Development of the European Electricity Sector: Investigating the Impact of Electricity Price, Market Liberalization and Energy Taxation on RES Deployment. Energies, 16(14), 5567.
  • Hermannsson, K., Scandurra, R., & Graziano, M. (2021). The Effect of Higher Education on Youth Unemployment in European Regions During a Period of Economic Instability. Journal of Education Finance, 46(4), 477-495.
  • Kafkas, E. Timur, (2014), “Avrupa Birliği İşsizlikle Mücadele Stratejisi Işığında Türkiye İçin İşsizlik Sorununda Yeni Bir Paradigma: Çalışma Kredisi”, Çalışma ve Sosyal Güvenlik Bakanlığı Yurtdışı Hizmetleri, Uzmanlık Tezi.
  • Kettunen, J. (1997). Education and unemployment duration. Economics of education review, 16(2), 163-170.
  • Levin, A., Lin, C. F., & Chu, C. S. J. (2002). Unit root tests in panel data: asymptotic and finite-sample properties. Journal of econometrics, 108(1), 1-24.
  • Li, S., Whalley, J., & Xing, C. (2014). China's higher education expansion and unemployment of college graduates. China Economic Review, 30, 567-582.
  • Moreau, M. P., & Leathwood, C. (2006). Graduates' employment and the discourse of employability: a critical analysis. Journal of education and work, 19(4), 305-324.
  • Núñez, I., & Livanos, I. (2010). Higher education and unemployment in Europe: an analysis of the academic subject and national effects. Higher Education, 59, 475-487.
  • Pesaran, M. H. (2004). General diagnostic tests for cross section dependence in panels. Available at SSRN 572504.
  • Pesaran, M. H. (2006). Estimation and inference in large heterogeneous panels with a multifactor error structure. Econometrica, 74(4), 967-1012.
  • Pesaran, M. H. (2007). A simple panel unit root test in the presence of cross‐section dependence. Journal of applied econometrics, 22(2), 265-312.
  • Pesaran, M. H., & Yamagata, T. (2008). Testing slope homogeneity in large panels. Journal of econometrics, 142(1), 50-93.
  • Pesaran, M. H., Ullah, A., & Yamagata, T. (2008). A bias‐adjusted LM test of error cross‐section independence. The econometrics journal, 11(1), 105-127.
  • Qazi, W., Raza, S. A., & Sharif, A. (2017). Higher education development and unemployment in Pakistan: Evidence from structural break testing. Global Business Review, 18(5), 1089-1110.
  • Schomburg, H. (2000). Higher education and graduate employment in Germany. European Journal of Education, 35(2), 189-200.
  • Schumpeter, J. A., (1994). Capitalism, Socialism And Democracy. Routledge. ISBN 0-203-26611-0
  • Shahbaz, M., Shahzad, S. J. H., Mahalik, M. K., & Sadorsky, P. (2018). How strong is the causal relationship between globalization and energy consumption in developed economies? A country-specific time-series and panel analysis. Applied Economics, 50(13), 1479-1494.
  • THEC, Turkish Higher Education Council, https://istatistik.yok.gov.tr/ accessed 02.12.2023
  • Plümper T. & Christina J. Schneider (2007) Too much to die, too little to live: unemployment, higher education policies and university budgets in Germany, Journal of European Public Policy, 14:4, 631-653, DOI: 10.1080/13501760701314458
  • TurkStat, Labor Statistics, https://www.tuik.gov.tr/, Accessed: 02.12.2023
  • Turkstat2, İşgücü İstatistikleri Haber Bülteni, 2022, https://data.tuik.gov.tr/Bulten/Index?p=Isgucu-Istatistikleri-2022-49390 accesed: 04.12.2023
  • Valero, A., & Van Reenen, J. (2019). The economic impact of universities: Evidence from across the globe. Economics of Education Review, 68, 53-67.
  • Westerlund, J. (2005). New simple tests for panel cointegration. Econometric Reviews, 24(3), 297-316.
  • Woodley, A., & Brennan, J. (2000). Higher education and graduate employment in the United Kingdom. European Journal of Education, 35(2), 239-249.
  • Xia, W., Doğan, B., Shahzad, U., Adedoyin, F. F., Popoola, A., & Bashir, M. A. (2022). An empirical investigation of tourism-led growth hypothesis in the european countries: evidence from augmented mean group estimator. Portuguese Economic Journal, 1-28.
  • Xing, C., Yang, P., & Li, Z. (2018). The medium-run effect of China's higher education expansion on the unemployment of college graduates. China Economic Review, 51, 181-193.
There are 42 citations in total.

Details

Primary Language English
Subjects Political Economy
Journal Section Research Articles
Authors

Yahya Algül 0000-0003-3480-9871

Publication Date April 22, 2024
Submission Date December 9, 2023
Acceptance Date February 8, 2024
Published in Issue Year 2024

Cite

APA Algül, Y. (2024). Higher Education and Unemployment in Turkey: Regional Panel Analysis with Undergraduate, Master’s, and PhD Perspectives. Trends in Business and Economics, 38(2), 128-136. https://doi.org/10.16951/trendbusecon.1473077

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