Rate of return to and price of higher education in turkey: A case study of law faculty | [Türkiye'de yüksekö?retimin fiyati ve getiri orani: Hukuk fakültesi örne?i]

Abstract

The fact that higher education service provides important benefits

for individuals and society has resulted in excess demand. This is

directly related to a simple economic law suggesting that the

demand for goods or services of which price is zero or low will

increase until its marginal benefit approximates zero or very close

to zero. However, it seems that demand and supply of education is

difficult to determine based on the demand-supply and price

equilibrium included in economic theory. Investment decision

depends on the reciprocal influence of three components;

anticipated earnings, cost of the investment and the current interest

rate. The higher education having the characteristics of an

investment is influenced by these three components. In the study,

the price of higher education, with the reciprocal influence, and

individual demand of higher education are analyzed within the

framework of the sample of Law Faculty. In the conclusion part, it

is suggested that the price of higher education is significantly

below 1 and this increases the demand of higher education.