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Three Essays on Dynamics of Poverty

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1 Abstract

This dissertation includes three essays on dynamics of poverty in Turkey.

Essay one addresses the question of what are the main factors and events monetary poverty transitions of households in Turkey in the years 2007-2010. Using a balanced panel data set drawn from Survey of Income and Living Conditions (SILC) and applying binary choice models that assess the relative importance of these factors in contributing to a change in the

poverty status of the households, the findings reveal that factors such as the employment status of the household head and changes in household

composition are associated with poverty status changes, but changes in the amounts of income types have greater explanatory power.

Essay two focuses on the multidimensional aspect of poverty. Using a panel data drawn from SILC, the essay firstly aims to propose a multidimensional poverty measure for Turkey. Second, it aims to compare the new measure with the other existing common measures (relative income poverty and European severe material deprivation measure) by using random effects probit models. The findings indicate that the new measure is partially consistent with the other measures. In addition, they indicate that higher years of schooling, homeownership or being a rental/asset income recipient decreases the probability of being poor (irrespective of the measure), while large household size, attachment to agricultural employment or being a social welfare income recipient increases the probability of being poor.

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2 Essay three focuses on the intergenerational linkages of poverty. Using a cross section data obtained from SILC-2011 with a module on

intergenerational transmission of disadvantages, it analyzes whether poverty is transmitted from parents to children, and the effects of experiencing poverty during childhood on future outcomes of children. The findings indicate that children grown up in families with poor economic conditions are more likely to become income poor in the adulthood, which shows that there is low intergenerational mobility in income levels in Turkey. Those children start to work at their early ages, earn less and are living in large households. Also, they are more likely to involve in informal jobs and have a chronicle health problem in the adulthood.

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