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State Dependence in Poverty: The Case of Turkey

Author

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  • Julide Yildirim
  • M. Akif Bakır
  • Ayse Savas

Abstract

Despite poverty alleviation efforts, almost a quarter of households live below the poverty line in Turkey. This article aims to examine the dynamics of poverty focusing on poverty persistence in Turkey, utilizing Income and Living Conditions panel data belonging to 2010–2013. A random effects dynamic panel probit model has been employed. In order to tackle the initial values problem Heckman’s reduced form approximation is utilized. Empirical results indicate that gender, educational attainment, employment type, and household structure have statistically significant impact on the probability of being poor. Besides, experiencing poverty has a positive impact on future poverty likelihood, signalling state dependence.

Suggested Citation

  • Julide Yildirim & M. Akif Bakır & Ayse Savas, 2018. "State Dependence in Poverty: The Case of Turkey," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 54(9), pages 1963-1972, July.
    • Handle: RePEc:mes:emfitr:v:54:y:2018:i:9:p:1963-1972
    DOI: 10.1080/1540496X.2017.1386097
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    Cited by:

    1. Aleksandra Kolasa & Ewa Weychert, 2022. "The causal effect of catastrophic health expenditure on poverty in Poland," Working Papers 2022-23, Faculty of Economic Sciences, University of Warsaw.
    2. Nursel Aydiner-Avsar & M. Burak Onemli, 2023. "Working Poverty in Türkiye: A Dynamic Panel Analysis," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 168(1), pages 139-164, August.

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