The Impact of Education on Happiness and Wellbeing in a Middle-Income Country: The Case of Turkey

Authors : Mustafa Özer, Jan Fidrmuc

Pages : 252-272

Doi:10.21547/jss.1552896

View : 42 | Download : 38

Publication Date : 2025-01-28

Article Type : Research Paper

Abstract :This study analyses the causal relationship between education and subjective well-being by utilizing the 1997 educational reform in Turkey, which extended compulsory schooling from five to eight years. While the existing literature widely acknowledges the positive effects of education on employment opportunities, income levels, and health outcomes, its direct impact on subjective well-being remains a subject of debate. The central hypothesis posited is that education may elevate individuals\\\' aspirations, thereby offsetting its positive effects on reported happiness. The research employs an instrumental variable (IV) approach, leveraging regional variations in the implementation of the reform to enable robust causal inference. The findings indicate that while education has significant positive effects on income and future expectations, its direct impact on subjective well-being is not statistically significant, particularly for women. These results suggest that the relationship between education and happiness is not straightforward but is mediated through more complex mechanisms, such as economic and social factors. The study challenges the notion that the weak link between education and happiness can be attributed solely to endogeneity or mediating variables, instead supporting the theory that elevated aspirations provide a more compelling explanation. Limitations include the reliance on self-reported happiness data and the focus on individuals directly affected by the reform, potentially constraining the generalizability of the findings. This study contributes to the literature by emphasizing that educational policies should be designed with consideration for mental and subjective well-being alongside traditional economic outcomes.
Keywords : Türkiye, Eğitim reformu, Mutluluk, Refah, Fark-analizi. JEL Codes: H51, H52, I12, I26