The effect of social aid on social welfare in Turkey

The social protection system which has been evaluated by society and countries to protect individualds for social and economic risks consists of social security, social work, social transfer and social aid. The common purpose of social aid being different from economical and social structure of countries is to prevent poverty, deprivation and welfare loss. Though, distribution of social aid without any contribution margin has caused economic efficiency in many countries. It is essential that the relationship between social aid and income is argued seeing as the government budget finances social aid and the fund of social aid is provided by national income representing the welfare implication. In Turkey the institutionalisation process of social aid has been formed recently. Nonetheless, the perception about social aid is that it causes economic cost. In this study, the effect of social aid entering into the process of institutionalisation after 2002 on per capita income has been estimated and the impact of social aid on economic production has been analyzed in the long run. In this research which has been found the positive and significant effect of social aid on personal welfare, labour and capital taking part in production function has been attached variables which represent education, health and social aid. In the econometric model which has been analyzed by using Least Squares Method, the effect of variables representing eduaciton and heath indicator has more positive effect than the variable of social aid. Hence, the social aid should be given in the education and health area. This implementation is going to increase the positive contribution to welfare. Key Words: Social aid, welfare, economic growth, income, socio-economic inequality