IDEAS home Printed from https://ideas.repec.org/a/tek/journl/v2y2013i2p13-52.html
   My bibliography  Save this article

Welfare Impact of the Global Financial Crisis of 2008-2009 on Turkish Households

Author

Listed:
  • Meltem A. Aran

    () (Development Analytics, Istanbul, Turkey)

Abstract

This paper looks at how the macro-shock from the 2008 financial crisis has translated into income and welfare shocks in the form of reduced earnings and consumption at the household level in Turkey. Using a specialized household level Welfare Monitoring Survey implemented in May-June 2009 in seven Turkish provinces, the paper first establishes a link between the province- level shock and the changes in earnings at the household level. Secondly, using an instrumental-variables strategy, it establishes the link between the earnings reduction and changes in consumption. The main findings in the paper are that informally employed workers, and those with lower levels of education, were most likely to be hurt by the crisis. In terms of human- development investments at the household level, the paper finds that food expenditures acted as the main adjustment mechanism in the face of the in- come shock, while education and health expenditures remained relatively stable. The probability of reducing food consumption (and the amount of food provided to children) was highest among the poor that initially had low levels of household assets.

Suggested Citation

  • Meltem A. Aran, 2013. "Welfare Impact of the Global Financial Crisis of 2008-2009 on Turkish Households," Ekonomi-tek - International Economics Journal, Turkish Economic Association, vol. 2(2), pages 13-52, May.
  • Handle: RePEc:tek:journl:v:2:y:2013:i:2:p:13-52
    as

    Download full text from publisher

    File URL: http://ekonomitek.org/pdffile/no5_08_meltem_a_aran.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Fafchamps, Marcel & Udry, Christopher & Czukas, Katherine, 1998. "Drought and saving in West Africa: are livestock a buffer stock?," Journal of Development Economics, Elsevier, vol. 55(2), pages 273-305, April.
    2. McKenzie, David J., 2003. "How do Households Cope with Aggregate Shocks? Evidence from the Mexican Peso Crisis," World Development, Elsevier, vol. 31(7), pages 1179-1199, July.
    3. Holzmann, Robert & Pouget, Yann & Vodopivec, Milan & Weber, Michael, 2011. "Severance pay programs around the world : history, rationale, status, and reforms," Social Protection and Labor Policy and Technical Notes 62726, The World Bank.
    4. Escobal, Javier & Saavedra, Jaime & Suárez, Pablo, 2005. "Economic Shocks and Changes in School Attendance Levels and Education Expenditure in Peru," MPRA Paper 56481, University Library of Munich, Germany.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Global financial crisis; income shock; coping strategies; Turkey;

    JEL classification:

    • D10 - Microeconomics - - Household Behavior - - - General
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:tek:journl:v:2:y:2013:i:2:p:13-52. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ercan Uygur). General contact details of provider: http://edirc.repec.org/data/tekkkea.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.