Education and Income Inequality in Turkey: Does Schooling Matter?

The paper examines the link between educational variables and income inequality in Turkey. First, I evaluate the impact of educational level, then I move on to assess educational inequality and finally I consider educational spending by public and private sectors. I argue that due to the limited public spending on primary and secondary education and growing private spending, the spread between socio-economic groups will not be decreased significantly.inequality of income, education, public spending

Access to Credit: Microenterprises in Turkey

Access to external nance for small and medium enterprises is vital for survival and growth of such rms. In this paper we have analyzed the determinants of access to credit in microenterprises of Turkey. We use a unique dataset covering a large sample of microenterprises. We nd that size and signals of wealth positively aect the likelihood of getting a formal credit.Credit Markets, Informal Firms

Comparative Analysis of Organizational Forms in the Software Industry and Legal Services

Law firms are expected to be controlled by the workers because given the difficulty of monitoring labor, the transaction cost would be very high and the essential human capital investment would be lacking in a form controlled by the capital suppliers. Expectations are confirmed by the data. However, following the same reasoning one can easily suggest that software firms should also be controlled by the labor suppliers given the similar difficulty of monitoring labor and essential human capital. As in a law firm, the software firm uses very generic capital such as offices, computers and programming languages. Moreover, the human capital of the software developer is indispensable and highly firm specific. While we observe widespread worker control in terms of partnerships in legal service industry, the majority of the software firms are not controlled by the labor suppliers: instead they are controlled by the capital suppliers.Organizational forms, Asset specificity

A Note on the Deletion Channel Capacity

Memoryless channels with deletion errors as defined by a stochastic channel matrix allowing for bit drop outs are considered in which transmitted bits are either independently deleted with probability $d$ or unchanged with probability $1-d$. Such channels are information stable, hence their Shannon capacity exists. However, computation of the channel capacity is formidable, and only some upper and lower bounds on the capacity exist. In this paper, we first show a simple result that the parallel concatenation of two different independent deletion channels with deletion probabilities $d_1$ and $d_2$, in which every input bit is either transmitted over the first channel with probability of $\lambda$ or over the second one with probability of $1-\lambda$, is nothing but another deletion channel with deletion probability of $d=\lambda d_1+(1-\lambda)d_2$. We then provide an upper bound on the concatenated deletion channel capacity $C(d)$ in terms of the weighted average of $C(d_1)$, $C(d_2)$ and the parameters of the three channels. An interesting consequence of this bound is that $C(\lambda d_1+(1-\lambda))\leq \lambda C(d_1)$ which enables us to provide an improved upper bound on the capacity of the i.i.d. deletion channels, i.e., $C(d)\leq 0.4143(1-d)$ for $d\geq 0.65$. This generalizes the asymptotic result by Dalai as it remains valid for all $d\geq 0.65$. Using the same approach we are also able to improve upon existing upper bounds on the capacity of the deletion/substitution channel.Comment: Submitted to the IEEE Transactions on Information Theor