An inquiry on introducing a minimum income scheme in Turkey: Alternating between cost efficiency and poverty reduction

Abstract

Turkey is one of the few countries in Europe without a minimum income scheme. In an effort to simulate the potential economic impact of introducing such a scheme in Turkey, data from the 2007 Statistics on Income and Living Conditions were used to consider various policy scenarios with regard to eligibility conditions and benefits. The impact of a minimum guaranteed income scheme on the extent of poverty, income distribution and the proportion of potential beneficiaries at the individual and household levels were investigated under different policy variations, as well as their corresponding costs. Subsequent analyses provided supporting evidence for the affordability of minimum income schemes in Turkey that would contribute to altering inequalities in income distribution. © The Author(s) 2012.