The effect of the global financial crisis on household income, inequality and poverty in Turkey

Download

854-5043-1-PB.pdf

Date

2016-4

Author

Şeker, Sırma Demir
Dayıoğlu Tayfur, Meltem

Metadata

Show full item record

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Item Usage Stats

258
views

167
downloads

Using a nationally representative large scale micro data, we investigate the effect of the Global Financial Crisis (GFC) on household income, inequality and poverty in Turkey. In assessing the impact of the GFC, we take 2007 (pre-crisis year) as the benchmark and compare 2009 to 2007 and to 2011 (post-crisis period). We find that (real) household disposable income drops by 3.6 percent from 2007 to 2009, but that the decline in equivalized income is lower at 1.2 percent. Income inequality decreases over the crisis period, so does the absolute poverty rate, though quite marginally. Changes in household size and composition, household labor supply and non-contributory transfers help mitigate the negative effects of the GFC. The period following the crisis is marked by increases in both disposable income and equivalized income, and a sizeable drop in the poverty rate though we also observe an increase in income inequality.

Subject Keywords

Global financial crisis, Household income, Income inequality, Poverty, Turkey

URI

http://www2.feas.metu.edu.tr/metusd/ojs/index.php/metusd/article/view/854
https://hdl.handle.net/11511/58215

Journal

ODTÜ Gelişme Dergisi

Collections

Department of Economics, Article

Suggestions

OpenMETU
Core

The role of regional policies along with the external and endogenous factors in the resilience of regions Eraydın, Ayda (2016-03-01) This article aims to discuss the importance of the different policies and measures defined by governments in the resilience of regions, besides their connectedness to the global economic system and their endogenous capacities. The article explores the importance of different attributes in the resilience of Turkish regions (26 NUTS II regions) in the last two recessionary shocks and in the following recovery periods. By analysing the role of regional policies in the resilience of regions in two distinct peri...
Does Credit Composition have Asymmetric Effects on Income Inequality? New Evidence from Panel Data Seven, Ünal; Kilinc, Dilara; Coskun, Yener (MDPI AG, 2018-9-25) This paper studied the effects of credit to private non-financial sectors on income inequality. In particular, we focused on the distinction between household and firm credits, and investigated whether these two types of credit had adverse effects on income inequality. Employing cross-section augmented cointegrating regressions and using balanced panel data for 30 developed and developing countries over the period from 1995 to 2013, we showed that firm credit reduced income inequality, whereas there was no ...
The impact of the Southeastern Anatolia Project on the inter-regional inequalities in Turkey Toybıyık, Sibel Süer; Gedik, Ayşe; Department of City and Regional Planning (2003) The aim of this study is to examine the impact of the South Eastern Anatolia Project (GAP) on the inter-regional inequality between the GAP region and the rest of Turkey. Cross-sectional analyses are carried out for the years of 1990 and 2000, that is, before the project is put into effect and 10 years after of its implementation. Although this thesis is ultimately concerned with the inter-regional inequality, the within and the total-region inequality are also discussed. Moreover, since not only the econom...
Self-produced food and vulnerability to poverty in Turkey Tekgüç, Hasan (Orta Doğu Teknik Üniversitesi (Ankara, Turkey), 2013-12-1) Investigating vulnerability to poverty is crucial to the development of forwardlooking policies to fight poverty. I investigate the consumption of self-produced food as a strategy available to households to mitigate vulnerability in two dimensions: food and non-food consumption. First, I show that the consumption baskets of rural households that produce their own food are different and less expensive than those other rural households, which rely exclusively on retail food purchases. Second, I also show that...
The growth of income and energy consumption in six developing countries Sarı, Ramazan; Soytaş, Uğur (2007-02-01) This paper reexamines the inter-temporal link between energy consumption and income in six developing countries with diverse economic backgrounds and energy statistics, in a production function framework. We employ the generalized variance decompositions and generalized impulse response techniques to see if the growth of income and energy consumption contains considerable information to predict each other. In all countries, energy appears as an essential factor of production. Results indicate that energy ma...

Citation Formats

S. D. Şeker and M. Dayıoğlu Tayfur, “The effect of the global financial crisis on household income, inequality and poverty in Turkey,” ODTÜ Gelişme Dergisi, vol. 43, no. 1, pp. 361–390, 2016, Accessed: 00, 2020. [Online]. Available: http://www2.feas.metu.edu.tr/metusd/ojs/index.php/metusd/article/view/854.