Consumption-Based Poverty in Türkiye between 2003 and 2022

Sümeyye Yıldız
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Sümeyye Yıldız: Ankara Yıldırım Beyazıt University

Business and Economics Research Journal, 2025, vol. 16, issue 1, 1-20

Abstract: This paper seeks to evaluate consumption-based poverty in Türkiye between 2003 and 2022. Using representative household data from the Turkish Statistical Institute’s Household Budget Survey, this study calculates the Foster-Greer-Thorbecke (FGT) poverty indices based on relative poverty thresholds. The results show that poverty rates initially declined rapidly between 2003 and 2008, increased slightly between 2008 and 2012, and then continued to decline between 2012 and 2018. After 2018, poverty rates increased in Türkiye, almost reaching the 2007 level. The analysis also includes the decomposition of poverty changes into growth and redistribution components as well as subgroups. Growth in living standards acted as a poverty-reducing effect and was dominant between 2004-2008 and 2012-2018. The redistribution component was a poverty-increasing factor that was dominant after 2018. These periods coincide with the country’s overall economic performance. In particular, the highest decline in poverty rates occurred during high economic growth between 2003-2008. The surge in inflation post-2019 aligns with the increase in consumption poverty rates in 2022.

Keywords: Poverty; Consumption; Relative Poverty Line; Poverty Decomposition (search for similar items in EconPapers)
JEL-codes: I30 I31 I32 O10 O15 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:ris:buecrj:0676

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