THE EFFECTS OF PERCEIVED POVERTY ON SOCIAL EXCLUSION AND LIFE SATISFACTION: AN ANALYSIS USING THE STRUCTURAL EQUATION MODEL

Yunus Budak ()
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Yunus Budak: AĞRI İBRAHİM ÇEÇEN ÜNİVERSİTESİ

Eurasian Eononometrics, Statistics and Emprical Economics Journal, 2026, vol. 26, issue 26, 20-32

Abstract: This study analyzes the effects of individuals’ perceptions of poverty on social exclusion and life satisfaction through a Structural Equation Model (SEM). The research population consists of individuals residing in Ağrı Province who benefit from publicly supported social assistance programs. Based on data collected from 650 participants, the findings indicate that an increase in the perception of poverty significantly decreases life satisfaction while increasing social exclusion. According to the model results, a one-unit increase in the perception of poverty leads to a 0.682-unit decrease in life satisfaction and a 0.451-unit increase in social exclusion. These results demonstrate that poverty negatively affects not only individuals’ economic conditions but also their psychosocial well-being and social integration. The structural model reveals that the impact on life satisfaction is particularly stronger, emphasizing that anti-poverty policies should not be limited to income support alone but should instead adopt a holistic perspective encompassing individuals’ psychosocial well-being. In this context, it is recommended that social policies be designed with a multidimensional approach aimed at improving quality of life and strengthening social capital and participation levels.

Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:eas:econst:v:26:y:2025:i:26:p:20-32

DOI: 10.17740/eas.stat.2025-V25-02

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