Akademik Veri Yönetim Sistemi
31st Conference on Economics (TEA2024) , Muğla, Türkiye, 31 Ekim - 02 Kasım 2024, ss.47, (Özet Bildiri)
Poverty
has been one of the most prominent socioeconomic challenges globally for
centuries, but it can be alleviated if its main roots are revealed.
Employment-related factors and household dependency may considerably explain
poverty. In this study, we merge the concepts of employment and dependency, and
produce a variable called employment dependency. We define employment
dependency as the ratio of the total population to the employed population and
observe a notable variation between countries. This variable indicates how many
people an employed person maintains on average. We define poverty as the ratio
of the population who have difficulty in making ends and investigate the connection
between poverty rates and employment dependency ratios in 27 OECD countries for
the 2004-2021 period. We estimate a fractional probit model by controlling for
average wage levels and social expenditures. Findings reveal that an increase
in employment dependency rates significantly exacerbates poverty rates.
Afterwards, considering the heterogeneity of the countries, we apply the PS
club convergence analysis and identify three convergence clubs. Applying the
fractional probit estimations separately for the clubs we conclude that factors
influencing poverty rates differ between clubs and therefore differentiated
poverty alleviation strategies are required rather than a one-size-fits-all
approach.