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Workshop on New Approaches to Poverty Measurement
20 February 2014, Ankara University

Strategies against Poverty
in light of
the LIMTCP Study on Turkey

İpek İlkkaracan Ajas
İstanbul Technical University
Faculty of Management
The LIMTCP Study on Turkey Implications for Economic and Social Policy Design
LIMTCP Study relates to two persistent structural economic
challenges in Turkey:

1. Very low employment rate (under 50% in the past decade)
caused by very low female employment rate (around 25%
female vs. 65% male employment rate)
2. One of the highest poverty rates in the OECD (child poverty
at 24.6% almost twice the OECD average)

•
•

The LIMTCP study sets the linkages between the two:
Shows that employment generation has a strong potential for
poverty alleviation;
Yet also points out to the limitations of employment generation as
an anti-poverty strategy given substantial time deficits faced by
households.
The LIMTCP Study on Turkey Implications for Economic and Social Policy Design
Gendered nature of the findings:
The study shows that in poor households most able bodied eligible
men are already in employment; hence
An overwhelming majority of job recepients in poor households would
consist of women;
Emerging perspective on poverty alleviation:

•

Transforming household structure from ‘male breadwinner, female carer
families’ to ‘dual earner, dual carer’ families as an anti-poverty strategy

Different from the current policy discourse on anti-poverty policy in Turkey emphasizes:

1. Social transfers - Focused primarily on women
– Conditional cash transfers to women for elderly, sick and disabled care
– Conditional cash transfers to mothers for children’s education
– ‘Family Insurance’ paid to women – a proposal by main opposition party in the last
elections
2. Employment – Focused primarily on male employment
Distribution of Households by Labor Supply Structure (SILC 2010)
Total Sample

Sample Excluding Family
Farming
Populat
ion
%
HHs
%

Population

%

HHs

%

15,372

21.55

3,821

19.77

6,988

11.64

1,930

11.53

23,748

33.29

6,105

31.60

22,987

38.29

5,871

35.09

7,715

10.81

1,462

7.57

6,625

11.04

1,290

7.71

Female Headed

7,307

10.24

2,901

15.01

6,896

11.49

2,771

16.56

Other

17,200

24.11

5,033

26.05

16,531

27.54

4,870

29.11

Total

71,343

100

19,321

100

60,027

100

16,732

100

Dual Earner
Single Male
Breadwinners
Male
Breadwinners
with Multiple
Earners

İ. İlkkaracan and S. Değirmenci (2013), The Impact of Household Labor Supply Structure
on Poverty, ITU Working Paper.
Poverty Rates by Household Labor Supply Structure (SILC 2010)
relative poverty rate (60% median)

No. of
Population
Median
Poor
Ratio of
(in 1000's) Income (TL) (in 1000's) Poor (%)
Dual Earner

Poverty
Gap

6,988

11,604

763

10.92

19.60

22,987

7,406

5,547

24.13

26.31

6,625

8,331

1,323

19.97

26.48

Female Headed

6,896

8,069

1,420

20.59

27.59

Other

16,531

7,701

4,427

26.78

33.92

Total

60,027

7,907

13,480

22.46

28.69

Single Male
Breadwinners
Male Breadwinners
with Multiple
Earners

İlkkaracan and Değirmenci, 2013
Poverty Rates by Household Labor Supply Structure and Education of HH
Reference Person (SILC 2010)
Population
(in 1000’s)

Median Income
(TL)

No. of Poor
(in 1000’s)

Ratio of
Poor
(%)

2,865
11,137

7,150
5,846

627
4,087

21.88
36.70

4,756

7,093

1,162

24.43

785
3,254

10,938
6,788

58
693

7.39
21.30

655

9,178

84

12.82

1,513
5,718

12,915
8,567

78
718

5.16
12.56

849

10,076

77

9.07

1,824
2,879

24,270
13,099

1
48

0.05
1.67

364

17,375

0

0

Primary Education and Less
Dual Earner
Single Male Breadwinners
Male Breadwinners with Multiple
Earners

Secondary Education
Dual Earner
Single Male Breadwinners
Male Breadwinners with Multiple
Earners

High School
Dual Earner
Single Male Breadwinners
Male Breadwinners with Multiple
Earners

University
Dual Earner
Single Male Breadwinners
Male Breadwinners with Multiple
Earners

İlkkaracan and Değirmenci, 2013
Impact of Dual Earnership on Poverty Risk - Logistic Regression Analysis
Dependent Variable: Relative Poverty (60% median Income)

Explanatory Variables
• Dual Earner HH

B

S.E.

Odds Ratio
[Exp(B)]

Marginal
Effects

-0,436

0,064

0,65

-0.05

•

Dual Earner HH * Spouse
Employed Full-time

-0,723

0,081

0,52

-0.07

•

Dual Earner HH * Spouse
Employed under Social Security

-1,672

0,175

0,21

-0.11

Other Controls
Individual Controls (x3)
HH Reference Person Controls (x6)
•
•

HH Ref Person Employed
with social security

-0,994

HH Ref Person University

0,042

0,39

-0.12

-3,436

,180

0,03

-0.18

-1.197

0,281

0,28

-0.07

Spouse Controls (x5)
•

Spouse University

HH Characteristics Controls (x3)
Regional Controls (x6)

İlkkaracan and Değirmenci, 2013
Counterfactual Poverty Rates triggered by a Change in Wife’s
Employment Status
actual
Median
Income (TL)

Dual Earner
(Wife quits her job)
Single Male
Breadwinners
(Wife gets a job)
Male Breadwinners
with Multiple
Earners
(Wife gets a job)

counterfactual

No of Poor
(in 1000’s)

Ratio of
Poor (%)

Median
Income
(TL)

11,604

763

10.92

8,522

1,343

19.22

7,406

5,547

24.13

10,043

2,441

10.62

8,331

1,323

19.97

9,948

912

13.77

İlkkaracan and Değirmenci, 2013

Ratio of
No of Poor
Poor
(in 1000’s)
(%)
The LIMTCP Study on Turkey Implicationsfor Economic and Social Policy Design
• The LIMTCP study on Turkey sets the linkages between
employment generation, dual earnership and poverty reduction;

• Yet also points out to its limitations since
Women’s earnings will be too low and the working time
requirements too high to produce a net positive effect on household
welfare given:
1. current labor market conditions of long work hours, and
low wages; and,
2. lack of social care services provisioning.

Hence even if and when jobs are available, many women
are unlikely to enter the labor market and indeed they do
not!
Labor Force Participation Rate (%)

Urban Labor Force Participation Rates by Gender, Marital Status and
Education, Prime Working Age (20-49), 2011 HHLFS (İlkkaracan, 2014)

120

100

92,6
80

96

97,8

85

88,4
82,4

never married women

73,4

95
89,6

never married men

73,2
62,8

60

married women

47,9

married men

40

29,2

28
20

18,2

18,9

0

5-years primary or 8 years primary
less

high school

university
Time Use in Household and Workplace Work Hours, 2006
Unpaid
Workplace or Total (home
Total
and
household caring job search workplace)
labor
labor hours
hours
hours
labor hours W/M ratio
(daily)
(daily)
(weekly)
Women
Men
Women
Married
Men
Women
Never married
Men
Women
Ages 25-34
Men
Women
University graduate
Men
Women
Primary school
graduate
Men
Women
Employed
Men
Women
Sweden
Men
Women
France
Men
Women
Spain
Men
Average 15+
population

05:17
00:51
06:14
00:55
03:36
00:38
06:27
00:49
03:52
01:05
06:11
00:53
04:03
00:43
05:02
02:52
05:18
02:19
05:49
01:56

01:08
04:27
00:59
04:53
01:44
03:11
01:23
06:02
02:37
04:16
01:02
04:56
04:19
06:08
03:16
06:02
03:07
05:00
03:01
05:27

45
37
51
41
34
30
55
48
45
37
51
41
59
48
58
62
57
53
62
52

Household (unpaid)
labor hours W/M ratio

1,22

6,22

1,24

6,80

1,13

5,68

1,15

6,67

1,22

3,57

1,24

7,00

1,23

5,65

0,94

1,76

1,15

2,29

1,19

3,01

Source: For Turkey data, TÜİK 2006 Time Use Survey; for France, Swede
and Spain EC 2008 (1998-2004 data).
Anti poverty policy design – What are the options?
Social Transfers
• Risk of
institutionalizing
gendered
dependency patterns;
• Drain on public
budgets;
• Political corruption.

Employment Generation
•

•
•

Decent jobs generating
growth as the priority
objective of macroeconomic
policy
Yet by itself, positive net
welfare effect will be
limited;
Labor market regulation and
social service provisioning
need to accompany

Work-Life Balance Policies
• Public provisioning of social
care services
• Care leave
• Labor market regulation for
decent work hours, wages
and formal employment
practices
Is Flexible Work policy likely to achieve both employment
generation and work-life balance policy in one shot?
Draft policy proposal on flexible employment and workfamily balance announced in June 2013:
• Proposes to improve women’s labor market
attachment through extended maternity leave
(proposed as long as 6 years on a part-time basis);
• Combined with expanding opportunities for women’s
part-time work and;
• Work from home as “appropriate forms of work” for
women.
WORK-FAMILY BALANCE A LA TURCA!!!
• Gender equality perspective is lost!
• Aim is to improve quantity of employment for women (?) with no
attention to quality or sustainability
Anti poverty policy design – What are the
options?

• Decent jobs generating growth
+
• Work-Life Balance through
– Service provisioning and
– Gender egalitarian labor market regulation

Policy Vision:
• Supporting self-sufficiecy
• Gender equality
• Sustainable poverty alleviation
Upcoming research
• Impact of Public Investments in Social Care Services on
Employment, Gender Equality and Poverty in Turkey
Levy Economics Insitute and Istanbul Technical University
Objectives:
• to assess the need for social care services and necessary
scale of public investments
• to explore the impact of these investments on employment
generation by industry and occupation
• to assess the likely distribution of jobs by gender, education
level, rural/urban status, etc.
• to contextualize these outcomes in comparison to similar
effects of alternative public investments in other areas such
as physical infrastructure
• Thank you.

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Levy Enstitüsü Zaman ve Tüketim Yoksulluğu ölçümü Türkiye değerlendirmesi ışığında yoksulluk ile ilgili stratejiler

  • 1. Workshop on New Approaches to Poverty Measurement 20 February 2014, Ankara University Strategies against Poverty in light of the LIMTCP Study on Turkey İpek İlkkaracan Ajas İstanbul Technical University Faculty of Management
  • 2. The LIMTCP Study on Turkey Implications for Economic and Social Policy Design LIMTCP Study relates to two persistent structural economic challenges in Turkey: 1. Very low employment rate (under 50% in the past decade) caused by very low female employment rate (around 25% female vs. 65% male employment rate) 2. One of the highest poverty rates in the OECD (child poverty at 24.6% almost twice the OECD average) • • The LIMTCP study sets the linkages between the two: Shows that employment generation has a strong potential for poverty alleviation; Yet also points out to the limitations of employment generation as an anti-poverty strategy given substantial time deficits faced by households.
  • 3. The LIMTCP Study on Turkey Implications for Economic and Social Policy Design Gendered nature of the findings: The study shows that in poor households most able bodied eligible men are already in employment; hence An overwhelming majority of job recepients in poor households would consist of women; Emerging perspective on poverty alleviation: • Transforming household structure from ‘male breadwinner, female carer families’ to ‘dual earner, dual carer’ families as an anti-poverty strategy Different from the current policy discourse on anti-poverty policy in Turkey emphasizes: 1. Social transfers - Focused primarily on women – Conditional cash transfers to women for elderly, sick and disabled care – Conditional cash transfers to mothers for children’s education – ‘Family Insurance’ paid to women – a proposal by main opposition party in the last elections 2. Employment – Focused primarily on male employment
  • 4. Distribution of Households by Labor Supply Structure (SILC 2010) Total Sample Sample Excluding Family Farming Populat ion % HHs % Population % HHs % 15,372 21.55 3,821 19.77 6,988 11.64 1,930 11.53 23,748 33.29 6,105 31.60 22,987 38.29 5,871 35.09 7,715 10.81 1,462 7.57 6,625 11.04 1,290 7.71 Female Headed 7,307 10.24 2,901 15.01 6,896 11.49 2,771 16.56 Other 17,200 24.11 5,033 26.05 16,531 27.54 4,870 29.11 Total 71,343 100 19,321 100 60,027 100 16,732 100 Dual Earner Single Male Breadwinners Male Breadwinners with Multiple Earners İ. İlkkaracan and S. Değirmenci (2013), The Impact of Household Labor Supply Structure on Poverty, ITU Working Paper.
  • 5. Poverty Rates by Household Labor Supply Structure (SILC 2010) relative poverty rate (60% median) No. of Population Median Poor Ratio of (in 1000's) Income (TL) (in 1000's) Poor (%) Dual Earner Poverty Gap 6,988 11,604 763 10.92 19.60 22,987 7,406 5,547 24.13 26.31 6,625 8,331 1,323 19.97 26.48 Female Headed 6,896 8,069 1,420 20.59 27.59 Other 16,531 7,701 4,427 26.78 33.92 Total 60,027 7,907 13,480 22.46 28.69 Single Male Breadwinners Male Breadwinners with Multiple Earners İlkkaracan and Değirmenci, 2013
  • 6. Poverty Rates by Household Labor Supply Structure and Education of HH Reference Person (SILC 2010) Population (in 1000’s) Median Income (TL) No. of Poor (in 1000’s) Ratio of Poor (%) 2,865 11,137 7,150 5,846 627 4,087 21.88 36.70 4,756 7,093 1,162 24.43 785 3,254 10,938 6,788 58 693 7.39 21.30 655 9,178 84 12.82 1,513 5,718 12,915 8,567 78 718 5.16 12.56 849 10,076 77 9.07 1,824 2,879 24,270 13,099 1 48 0.05 1.67 364 17,375 0 0 Primary Education and Less Dual Earner Single Male Breadwinners Male Breadwinners with Multiple Earners Secondary Education Dual Earner Single Male Breadwinners Male Breadwinners with Multiple Earners High School Dual Earner Single Male Breadwinners Male Breadwinners with Multiple Earners University Dual Earner Single Male Breadwinners Male Breadwinners with Multiple Earners İlkkaracan and Değirmenci, 2013
  • 7. Impact of Dual Earnership on Poverty Risk - Logistic Regression Analysis Dependent Variable: Relative Poverty (60% median Income) Explanatory Variables • Dual Earner HH B S.E. Odds Ratio [Exp(B)] Marginal Effects -0,436 0,064 0,65 -0.05 • Dual Earner HH * Spouse Employed Full-time -0,723 0,081 0,52 -0.07 • Dual Earner HH * Spouse Employed under Social Security -1,672 0,175 0,21 -0.11 Other Controls Individual Controls (x3) HH Reference Person Controls (x6) • • HH Ref Person Employed with social security -0,994 HH Ref Person University 0,042 0,39 -0.12 -3,436 ,180 0,03 -0.18 -1.197 0,281 0,28 -0.07 Spouse Controls (x5) • Spouse University HH Characteristics Controls (x3) Regional Controls (x6) İlkkaracan and Değirmenci, 2013
  • 8. Counterfactual Poverty Rates triggered by a Change in Wife’s Employment Status actual Median Income (TL) Dual Earner (Wife quits her job) Single Male Breadwinners (Wife gets a job) Male Breadwinners with Multiple Earners (Wife gets a job) counterfactual No of Poor (in 1000’s) Ratio of Poor (%) Median Income (TL) 11,604 763 10.92 8,522 1,343 19.22 7,406 5,547 24.13 10,043 2,441 10.62 8,331 1,323 19.97 9,948 912 13.77 İlkkaracan and Değirmenci, 2013 Ratio of No of Poor Poor (in 1000’s) (%)
  • 9. The LIMTCP Study on Turkey Implicationsfor Economic and Social Policy Design • The LIMTCP study on Turkey sets the linkages between employment generation, dual earnership and poverty reduction; • Yet also points out to its limitations since Women’s earnings will be too low and the working time requirements too high to produce a net positive effect on household welfare given: 1. current labor market conditions of long work hours, and low wages; and, 2. lack of social care services provisioning. Hence even if and when jobs are available, many women are unlikely to enter the labor market and indeed they do not!
  • 10. Labor Force Participation Rate (%) Urban Labor Force Participation Rates by Gender, Marital Status and Education, Prime Working Age (20-49), 2011 HHLFS (İlkkaracan, 2014) 120 100 92,6 80 96 97,8 85 88,4 82,4 never married women 73,4 95 89,6 never married men 73,2 62,8 60 married women 47,9 married men 40 29,2 28 20 18,2 18,9 0 5-years primary or 8 years primary less high school university
  • 11. Time Use in Household and Workplace Work Hours, 2006 Unpaid Workplace or Total (home Total and household caring job search workplace) labor labor hours hours hours labor hours W/M ratio (daily) (daily) (weekly) Women Men Women Married Men Women Never married Men Women Ages 25-34 Men Women University graduate Men Women Primary school graduate Men Women Employed Men Women Sweden Men Women France Men Women Spain Men Average 15+ population 05:17 00:51 06:14 00:55 03:36 00:38 06:27 00:49 03:52 01:05 06:11 00:53 04:03 00:43 05:02 02:52 05:18 02:19 05:49 01:56 01:08 04:27 00:59 04:53 01:44 03:11 01:23 06:02 02:37 04:16 01:02 04:56 04:19 06:08 03:16 06:02 03:07 05:00 03:01 05:27 45 37 51 41 34 30 55 48 45 37 51 41 59 48 58 62 57 53 62 52 Household (unpaid) labor hours W/M ratio 1,22 6,22 1,24 6,80 1,13 5,68 1,15 6,67 1,22 3,57 1,24 7,00 1,23 5,65 0,94 1,76 1,15 2,29 1,19 3,01 Source: For Turkey data, TÜİK 2006 Time Use Survey; for France, Swede and Spain EC 2008 (1998-2004 data).
  • 12. Anti poverty policy design – What are the options? Social Transfers • Risk of institutionalizing gendered dependency patterns; • Drain on public budgets; • Political corruption. Employment Generation • • • Decent jobs generating growth as the priority objective of macroeconomic policy Yet by itself, positive net welfare effect will be limited; Labor market regulation and social service provisioning need to accompany Work-Life Balance Policies • Public provisioning of social care services • Care leave • Labor market regulation for decent work hours, wages and formal employment practices
  • 13. Is Flexible Work policy likely to achieve both employment generation and work-life balance policy in one shot? Draft policy proposal on flexible employment and workfamily balance announced in June 2013: • Proposes to improve women’s labor market attachment through extended maternity leave (proposed as long as 6 years on a part-time basis); • Combined with expanding opportunities for women’s part-time work and; • Work from home as “appropriate forms of work” for women. WORK-FAMILY BALANCE A LA TURCA!!! • Gender equality perspective is lost! • Aim is to improve quantity of employment for women (?) with no attention to quality or sustainability
  • 14. Anti poverty policy design – What are the options? • Decent jobs generating growth + • Work-Life Balance through – Service provisioning and – Gender egalitarian labor market regulation Policy Vision: • Supporting self-sufficiecy • Gender equality • Sustainable poverty alleviation
  • 15. Upcoming research • Impact of Public Investments in Social Care Services on Employment, Gender Equality and Poverty in Turkey Levy Economics Insitute and Istanbul Technical University Objectives: • to assess the need for social care services and necessary scale of public investments • to explore the impact of these investments on employment generation by industry and occupation • to assess the likely distribution of jobs by gender, education level, rural/urban status, etc. • to contextualize these outcomes in comparison to similar effects of alternative public investments in other areas such as physical infrastructure