Social Transfers and Labor Force Participation Relation in Turkey: A Bivariate Probit Analysis

Julide Yildirim and Sureyya Dal

Emerging Markets Finance and Trade, 2016, vol. 52, issue 7, 1515-1527

Abstract: This study explores the association of labor force and social assistance program participation decisions in Turkey by employing the 2011 household budget survey (HBS) data. The issue is investigated in a bivariate probit framework, where the two incidences are jointly modeled. The differences in rural and urban behavior are also explored. Empirical results indicate that the more one works, the less one participates in social transfer program, and vice versa. Additionally, age, gender, household type and composition impact decision-making process of individuals both in urban and rural areas. The negative association between labor force participation and social transfer program participation is more pronounced in urban areas compared with the rural areas.

Date: 2016
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Persistent link: https://EconPapers.repec.org/RePEc:mes:emfitr:v:52:y:2016:i:7:p:1515-1527

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DOI: 10.1080/1540496X.2016.1158532

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