The effect of 2008 global economic crisis on poverty in the context of household characteristics: The case of Türkiye

Poverty is an issue that is constantly on the agenda of economics and policy practitioners. Therefore, poverty attracts the attention of economists and other social scientists. Despite high welfare increases in the globalizing world, poverty appears as a problem in developed countries as well as in underdeveloped countries. Similar to other countries, poverty is one of the main socioeconomic problems waiting to be solved in Türkiye. In this research, which examines the economic crisis and poverty, the basic concepts are primarily included. Then, the course of poverty in Türkiye during the 2008 global economic crisis was investigated at the micro level. The global economic crisis, which affected many countries, also affected Türkiye. Measuring this effect with the poverty variable is important in terms of shedding light on the reflection of the crisis on households. In the study, the Household Budget Survey data prepared by the Turkish Statistical Institute for the period of 2006-2010 was used to investigate the impact of the 2008 global economic crisis on household poverty. Households were divided into six different poverty categories according to their annual disposable income and dependent variables were formed. The relative poverty line was taken into account while creating the categories. The independent variables are demographic and socioeconomic characteristics of the head of the household and his spouse, housing characteristics-assets and other factors. In accordance with the ordered categorical structure of the dependent variable, the generalized ordered logit model was used. In the study, the household head in Türkiye; It has been concluded that being male, being 39 years old and under, married, not having compulsory insurance, not being able to finish a school, working in the agricultural sector, working regularly and not being registered with a union, increases the probability of households to be poor during the global economic crisis. Similarly, the spouse responsible for the household: not being able to finish a school, working in the agricultural sector, working as a self-employed and unpaid family worker, not being registered with a union increases the probability of the households becoming impoverished during the global economic crisis. In terms of housing characteristics-assets and other factors; residing in a detached-independent house or house with a single wall, being a tenant, using a stove for heating, residing in the countryside, having no real estate rental income, not having a car, not having a second home, not having a land, not having a shop, living in crowded and dependent households increases the likelihood of being adversely affected by the crisis.