Social Transfers and Labor Force Participation Relation in Turkey: A Bivariate Probit Analysis

Yıldırım Öcal J., Dal S.

EMERGING MARKETS FINANCE AND TRADE, vol.52, no.7, pp.1515-1527, 2016 (SSCI) identifier identifier

  • Publication Type: Article / Article
  • Volume: 52 Issue: 7
  • Publication Date: 2016
  • Doi Number: 10.1080/1540496x.2016.1158532
  • Journal Name: EMERGING MARKETS FINANCE AND TRADE
  • Journal Indexes: Social Sciences Citation Index (SSCI), Scopus
  • Page Numbers: pp.1515-1527
  • Keywords: bivariate probit model, labor force participation, social transfers, Turkey, C35, I38, J21, H53, TRANSFER PROGRAMS, WORK INCENTIVES, WELFARE PROGRAM, IMPACT
  • TED University Affiliated: Yes

Abstract

This study explores the association of labor force and social assistance program participation decisions in Turkey by employing the 2011 household budget survey (HBS) data. The issue is investigated in a bivariate probit framework, where the two incidences are jointly modeled. The differences in rural and urban behavior are also explored. Empirical results indicate that the more one works, the less one participates in social transfer program, and vice versa. Additionally, age, gender, household type and composition impact decision-making process of individuals both in urban and rural areas. The negative association between labor force participation and social transfer program participation is more pronounced in urban areas compared with the rural areas.