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

  • Seyit Mümin CİLASUN

    (Atılım üniversitesi, ODTÜ)

  • Murat Güray KIRDAR

    (ODTÜ)

In this study, using the 2003 Turkish Household Budget Survey, we investigate the lifecycle profiles of household income and its components by educational attainment, compare these profiles with those reported for various developed and developing countries, and interpret our findings within the life-cycle framework. A key aspect of our analysis is that we examine the link between household structure and household income over the life-cycle. The main finding of the study is that household income profiles conditional on educational attainment in Turkey are non-decreasing 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 families live together in the same household, especially when the household head is very young or old, and many single adult children who are employed live in their parents’ households. In other words, household formation helps to smooth income. 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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Article provided by Bilgesel Yayincilik in its journal İktisat İşletme ve Finans.

Volume (Year): 28 (2013)
Issue (Month): 328 ()
Pages: 89-116

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Handle: RePEc:iif:iifjrn:v:28:y:2013:i:328:p:89-116
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  1. 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.
  2. Halvorsen, Elin, 2003. "A Cohort Analysis of Household Saving in Norway," Memorandum 36/2002, Oslo University, Department of Economics.
  3. Tansel, A., 1992. "Wage Employment, Earnings and Returns to Schooling for Men and Women in Turkey," Papers 661, Yale - Economic Growth Center.
  4. 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.
  5. 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.
  6. Orazio P. Attanasio & Guglielmo Weber, 1994. "Is Consumption Growth Consistent with Intertemporal Optimization? Evidence from the Consumer Expenditure Survey," NBER Working Papers 4795, National Bureau of Economic Research, Inc.
  7. Elin Halvorsen, 2003. "A Cohort Analysis of Household Saving in Norway," Discussion Papers 354, Research Department of Statistics Norway.
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