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Regional employment support programs and multidimensional poverty of youth in Turkey

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Abstract

Poverty rates amongst youth are high even in the most developed countries in the world. The aim of alleviating poverty in many nations, therefore, remains a significant issue. To comprehend the risks posed by poverty, its dimension and the process by which it can become deeper must be identified and recognized. A broad consensus among policy makers, academic and other institutions is that poverty can be a mixture of various monetary and non-monetary components. These components can limit people’s capacity to achieve their ability and affect their well-being. Therefore, the socio-economic growth of a family and the increase in welfare of a country should be defined in the combination of both monetary and non-monetary aspects. In this study, we aim to estimate the Multidimensional Poverty Index (MPI) for the young and the general population in Turkey over the period 2006–2015. The results of the study show a significant reduction in youth poverty, especially in the Eastern part of the country in the period we explore. The second aim is to evaluate the effect of the 2012 Regional Investment Incentive Scheme on the MPI of the youth population. The findings suggest that the Regional Investment Incentive Scheme had a positive impact on the poverty level in the Eastern part of Turkey, which is the major region of the policy’s interest.

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Fig. 1

Source: Council of Ministers Decree on State Aids in Investments, 2012/3305 (19 June 2012). Official Magazine, 28328. http://www.invest.gov.tr/

Fig. 2

Source: Authors’ Calculations

Fig. 3

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Data availability

This work is based on data derived from the Cross-Sectional Income and Living Conditions Survey (ILCS) 2006-2015 provided by TURKSTAT. The authors would like to thank TURKSTAT for providing the surveys.

Notes

  1. It is defined as the 60% of the mean equivalised income for people aged 15–24 years.

  2. Provinces in the South-East Anatolia are excluded, as Gaziantep belongs to the policy Region of III rather than IV, V and VI like the other provinces.

  3. SILC dataset can be obtained by the researchers filling out the “Micro Data Request Form” via internet (https://www.turkiye.gov.tr/tuik-mikro-veri-talep-uygulamas-3399), and print out the form and get approval of his/her institution/organization. After that, he/she directly applies to the Turkish Statistical Institute Presidency. Upon the approval of the request and signing of the Letter of Undertaking, the micro data CDs are provided.

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Acknowledgements

The authors would like to thank the Editor and two anonymous reviewers for their valuable suggestions and constructive comments that greatly contributed to the improvement of the quality of this paper. Any remaining errors or omissions remain the responsibility of the authors. This paper was presented in the workshop organized by the ERF on 7, July 2019. The authors would like to thank Professors Valerie Bérenger and Semih Tumen, as well as, the participants of the workshop for their valuable and constructive comments. An earlier version of this study is published as a working paper No. 1338 in August 2019 under the funding agreement with the Economic Research Forum (ERF) available at https://erf.org.eg/publications/regional-employment-support-programmes-and-multidimensional-poverty-of-youth-in-turkey/.

Funding

This research was supported by the Economic Research Forum (ERF) under the call “Non-Monetary Dimensions of Inequality and Poverty among the Youth in the ERF Region.” The authors are grateful for the financial support received.

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Authors and Affiliations

  1. Department of Public Finance, Nazilli Faculty of Economics and Administrative Sciences, Aydın Adnan Menderes University, Nazilli, Aydın, Turkey

    Eleftherios Giovanis

  2. Department of Economics, Faculty of Economics and Administrative Sciences, Izmir University Bakırcay, Gazi Mustafa Kemal, Kaynaklar Cd., 35665, Menemen, İzmir, Turkey

    Oznur Ozdamar

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  1. Eleftherios Giovanis
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Correspondence to Eleftherios Giovanis.

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Giovanis, E., Ozdamar, O. Regional employment support programs and multidimensional poverty of youth in Turkey. Eurasian Econ Rev 11, 583–609 (2021). https://doi.org/10.1007/s40822-021-00169-2

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