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The causal effect of education on poverty: evidence from Turkey

Author

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  • Ferhat CITAK

    (Hitit University, Çorum)

  • Patricia A. DUFFY

    (Auburn University, Auburn)

Abstract

This paper uses cross sectional survey data to explore the two-way causality between the household head's education level and poverty in Turkey. In contrast with the existing studies, this is the first study to examine the issue of a possible endogeneity problem. For that purpose and to overcome the simultaneity bias, we adopt the most commonly used Instrumental Variable (IV) estimation technique, two-stage least squares (2SLS) regression. Our IV estimates indicate that the policy reform, which was implemented in 1961, only increases the household head's years of education for rural residents. Furthermore, the higher the level of education of the household head, the higher the household per capita income. Policy recommendations for policymakers are addressed in the conclusion.

Suggested Citation

  • Ferhat CITAK & Patricia A. DUFFY, 2020. "The causal effect of education on poverty: evidence from Turkey," Eastern Journal of European Studies, Centre for European Studies, Alexandru Ioan Cuza University, vol. 11, pages 251-265, December.
    • Handle: RePEc:jes:journl:y:2020:v:11:p:251-265
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    References listed on IDEAS

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    1. Tansel, Aysit & Karao?lan, Deniz, 2016. "The Causal Effect of Education on Health Behaviors: Evidence from Turkey," IZA Discussion Papers 10020, Institute of Labor Economics (IZA).
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    3. Ingrid Woolard & Murray Leibbrandt, 1999. "Measuring Poverty in South Africa," Working Papers 99033, University of Cape Town, Development Policy Research Unit.
    4. Awan, Masood Sarwar & Malik, Nouman & Sarwar, Haroon & Waqas, Muhammad, 2011. "Impact of education on poverty reduction," MPRA Paper 31826, University Library of Munich, Germany.
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