UNDERSTANDING THE EFFECTS OF GOVERNMENT TRANSFERS DURING THE COVID-19 PANDEMIC ON POVERTY AND INEQUALITY IN TÜRKİYE

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M.S Thesis_Müge ÜNAL.pdf

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2023-2-17

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ÜNAL, Müge

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This study, examines the effects of short-time working allowance, cash wage support and pandemic support program (unrequited cash transfer to households) implemented in 2020 in order to reduce the effects of the Covid-19 pandemic on the labor market and to ensure continuity in household cash flow within the scope of Turkey's 'Economic Stability Shield Package'. In addition, we analyze the contribution of direct transfers, whose scope and size increased in 2020, to reducing poverty and improving income distribution. For this purpose, we utilize data from the 2020 and 2021 Turkey Income and Living Conditions Survey dataset and adopt the Commitment to Equity Methodology. In 2020, the income inequality and poverty improvement contribution of government transfers are compared with 2019 as a whole and on a program basis. The results show that the effect of direct transfers is higher in 2020 than in 2019 to improve income inequality and poverty. Transfers to support employee income result in an additional improvement in the poverty headcount ratio and poverty gap, while reducing the effectiveness of poverty reduction. The short-time working allowance and pandemic support program have the highest contribution to poverty headcount ratio reduction, while the contribution of cash wage support is limited. Sickness benefit is also at the forefront with the highest rate of increase in the marginal contribution to poverty reduction in 2020.

Subject Keywords

Gini, Poverty, Covid-19, Direct Transfers, Short-Time Working Allowances

URI

https://hdl.handle.net/11511/102062

Collections

Graduate School of Social Sciences, Thesis

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Citation Formats

M. ÜNAL, “UNDERSTANDING THE EFFECTS OF GOVERNMENT TRANSFERS DURING THE COVID-19 PANDEMIC ON POVERTY AND INEQUALITY IN TÜRKİYE,” M.S. - Master of Science, Middle East Technical University, 2023.