AN EXAMINATION OF POVERTY IN TURKEY: AN EVIDENCE FROM MULTINOMIAL LOGIT MODEL WITH RANDOM EFFECTS

It is important to examine the dynamic structure of poverty, as poverty can differ according to differences both in the welfare level and situation at a point in time. The examination of the dynamic structure of poverty by panel data allows both the learning of the chronic and transitory dimension of poverty and the examination of the profiles of chronic and transient poor families. It is also possible to investigate the factors influencing both of people who entries poverty at a point in time and people exist from poverty employing panel data. Therefore, this paper aims to provide the profile of poverty in Turkey, examining the determinants of poverty taking into account the dynamics of poverty; poverty outflow, transitory poverty and chronic poverty in Turkey using Turkish Statistical Institute, Income and Living Conditions Survey (SILC) panel micro data estimated employing the multinomial logit model with random effects The results show that the feautures of the household’s head and household have a different impact both on the transitory poverty and chronic poverty of household