Examination of the Transitions of Households into and out of Poverty in Turkey

Aysenur Acar () and Cem Baslevent ()
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Aysenur Acar: Bahcesehir University Center for Economic and Social Research
Cem Baslevent: Istanbul Bilgi University

No 15, Working Papers from Bahcesehir University, Betam

Abstract: Using a balanced panel drawn from Turkstat’s Survey of Income and Living Conditions (SILC), we aim to identify the main determinants of Turkish households’ entry into and exit from poverty. During the 4 year period (2007-2010) examined, the relative income poverty rate declined moderately, implying that households were more likely to exit than enter poverty. In addition to a descriptive analysis where poor, non-poor, entrant, and exitor households are compared in terms of basic household and household head characteristics, the empirical work involves the estimation of binary choice models that analyze the relative importance of these factors. Our models reveal that the employment status and schooling of the household head and household size are closely associated with poverty status changes. The probability of entry into poverty, for instance, is higher for larger households with many inactive/dependent members. However, model specifications that produce the best fit are the ones that take into account the changes in household composition and the amounts of income types received.

Keywords: poverty transitions; relative income poverty; binary choice models (search for similar items in EconPapers)
Pages: 34 pages
Date: 2014-11
New Economics Papers: this item is included in nep-ara, nep-cwa and nep-dcm
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