Search

In this paper, we examine the college major choice decision in a risk and return framework using university entrance exam data from Turkey. Specifically we focus on the choice between majors with low income risk such as education and health and others with riskier income streams. We use a unique dataset that allows us to control for the choice set of students and parental attitudes towards risk. Our results show that father's income, self-employment status and social security status are important factors influencing an individual in choosing a riskier career such as business over a less risky one such as education or health. (Contains 6 tables.)

To link to full-text access for this article, visit this link: http://dx.doi.org/10.1016/j.worlddev.2006.01.004 Byline: Cagla Okten Keywords: SOEs; privatization; efficiency; Middle East; Turkey Abstract: Uncovering the effects of privatization is difficult, because privatization of a particular firm usually is not an accident. This paper tests the effects of privatization on productive and allocative (market) efficiency using a rich panel data set of 22 privatized cement plants from Turkey in the 1983-99 period. Since all public cement firms were privatized and we have pre- and post-privatization data for all, we are able to avoid the problem of endogeneity associated with sample selection. Our analysis goes beyond just examining the privatization effects and explores how privatization really works. Changes in objectives of the firm (ownership effect) and changes in market structure (environment effect) may both be responsible for privatization outcomes. We find that ownership effects are sufficient to achieve improvements in labor productivity. Our results on allocative efficiency, however, are dependent on changes in the competitive environment. While all plants seem to improve labor productivity through work force reductions, plants privatized to foreign buyers also increase their capital and investment significantly. Author Affiliation: Bilkent University, Ankara, Turkey Article History: Accepted 10 January 2006

In this paper, we investigate how family and community networks affect an individual's access to credit institutions using new data from the Indonesia Family Life Surveys. Our theoretical framework emphasizes the family and community's role in providing information, thus lowering the search costs of the borrower and monitoring and enforcement costs for the lender. From our empirical results, community and family networks are important in knowing a place to borrow, as well as for loan approval. Consistent with an information-based explanation of networks, family and community networks have a larger impact on credit awareness of new credit institutions with a lower impact on awareness of established credit sources. Interestingly, we find that women benefit from participating in community networks more than men. There is no evidence that the rich benefit from community networks more than the poor. Our results on the benefits from participation in the community network are robust to the inclusion of community fixed effects. Key words--credit access, social networks, Indonesia

The effect of a range of economic variable on donations is examined in detail. IRS data from seven industries are analyzed. Fundraising costs and the impact of public sector and other grants are among factors assessed.