Determinants of Education Expenditures and Private Vs. Public Divide in Educational Outcomes in Turkey

The first aim of this study is to investigate the determinants of household education expenditures and to see whether income elasticity of education expenditure has increased throughout the period, in line with the privatization of the education system. To the extent that privatization and subsidization policies have increased the gap in quality of education between the private and public schools, this might cause an income inequality in the long-run. To analyze whether private schools provide a better education, in the second part of the study we will estimate a student achievement equation using OLS and a multi-level hierarchical regression model.