The interaction of private and public transfers during the pandemic: a panel data application

The pandemic period has caused great damage to the economies of countries. In the long term, the realisation of economic recovery in all segments of society by mitigating the negative effects of the pandemic period depends on the inclusiveness and continuity of social transfers. Social transfers play an important role in the policies to be implemented to alleviate the effects of the pandemic period in the long term, as they play a role in ensuring income equality. This thesis examines the relationship between public transfers and private transfers in Turkey during the pandemic period and analyses the existence of the exclusionary effect of public transfers on private transfers. In this study, we used the Panel Micro Data Set of the Turkish Statistical Institute (TurkStat) Survey on Income and Living Conditions (ISL-CSLI). The data set contains information on income and demographic variables at the household and individual level in Turkey for the period covering the years 2019-2022. Using random effects tobit analysis, the relationship between public transfers and private transfers is examined and the variables affecting private transfers are analysed. As a result, it was observed that the motivation source of private transfers in Turkey during the pandemic period was altruism. During the analysis period, public transfers did not have an exclusionary effect on private transfers. However, pension and dependency incomes have an exclusionary effect on private transfers. When we look at the gender category, women received more social transfers than men. When private transfers are analysed according to household types, households consisting of a single spouse and children received more private transfers than other household types. When analysed according to education levels, the amount of private transfers received decreased as the education level increased. In the analysed period, it was observed that public transfers were made by targeting more income-sensitive and vulnerable groups. Keywords: Public Transfers, Private Transfers, Altruism