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Household Structure, and Household Income and its Components over the Life-Cycle in Turkey

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  • Seyit Mümin Cilasun

    (Atýlým University)

  • Murat Güray Kýrdar

    (Middle East Technical University)

Abstract

In this study, using the 2003 Turkish Household Budget Survey (HBS), we investigate the life-cycle profiles of household income and its components by educational attainment, and compare these profiles with those reported for various developed and developing countries. A key aspect of our analysis is that we examine the link between household structure and household income over the life-cycle. The most interesting finding of the study is that household income profiles conditional on educational attainment in Turkey are nondecreasing and quite flat over the life-cycle. This is in stark contrast to the hump-shaped household income profiles reported for developed countries. There are three main reasons for this fact in Turkey: i) Multiple nuclear families live together in the same household, especially when the household head is very young or old, and many adult children who are employed live in their parents’ households. ii) Many household heads are still employed at end of their life cycle, especially among the less-educated. iii) Pension income levels, for those who are qualified for them, are relatively high compared to other components of income.

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Bibliographic Info

Paper provided by Turkish Economic Association in its series Working Papers with number 2012/63.

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Length: 35 pages
Date of creation: 2012
Date of revision:
Handle: RePEc:tek:wpaper:2012/63

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  1. Noriyuki Takayama & Yukinobu Kitamura, 1994. "Household Saving Behavior in Japan," NBER Chapters, in: International Comparisons of Household Saving, pages 125-168 National Bureau of Economic Research, Inc.
  2. Attanasio, Orazio P & Weber, Guglielmo, 1995. "Is Consumption Growth Consistent with Intertemporal Optimization? Evidence from the Consumer Expenditure Survey," Journal of Political Economy, University of Chicago Press, vol. 103(6), pages 1121-57, December.
  3. Orazio Attanasio, 1994. "Personal Saving in the United States," NBER Chapters, in: International Comparisons of Household Saving, pages 57-124 National Bureau of Economic Research, Inc.
  4. Elin Halvorsen, 2003. "A Cohort Analysis of Household Saving in Norway," Discussion Papers 354, Research Department of Statistics Norway.
  5. Marco Manacorda & Enrico Moretti, 2006. "Why do Most Italian Youths Live with Their Parents? Intergenerational Transfers and Household Structure," Journal of the European Economic Association, MIT Press, vol. 4(4), pages 800-829, 06.
  6. Halvorsen, Elin, 2003. "A Cohort Analysis of Household Saving in Norway," Memorandum 36/2002, Oslo University, Department of Economics.
  7. Tansel, Aysit, 1994. "Wage employment, earnings and returns to schooling for men and women in Turkey," Economics of Education Review, Elsevier, vol. 13(4), pages 305-320.
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