Turkiye Poverty and Equity Assessment

EQUITY ASSESSMENTPublic Disclosure Authorized Türkiye Poverty and Equity Assessment January2025 © 2025 International Bank for Reconstruction and Development / The World Bank 1818 H Street NW Washington DC 20433 Telephone: 202-473-1000 Internet:www.worldbank.org This work is a product of the staff of The World Bank. The findings, interpretations, and conclusions expressedin this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or thegovernments they represent. The World Bank does not guarantee the accuracy, completeness, or currency of the data included in this workand does not assume responsibility for any errors, omissions, or discrepancies in the information, or liabilitywith respect to the use of, or failure to use, the information, methods, processes, or conclusions set forth. Theboundaries, colors, denominations, and other information shown on any map in this work do not imply anyjudgment on the part of The World Bank concerning the legal status of anyterritory or the endorsement oracceptance of such boundaries. Nothing herein shall constitute or be construed or considered to be a limitationupon or waiver of the privileges and immunities of The World Bank, all of which are specifically reserved. Rights and Permissions: The material in this work is subject to copyright. Because The World Bank encouragesdissemination of its knowledge, this work may be reproduced, in whole or in part, for noncommercial purposesif full attribution to this work is given. Attribution—Please cite the work as follows:World Bank. 2025. “Türkiye Poverty and Equity Assessment.”Washington, DC: World Bank. License: Creative Commons Attribution CC BY 3.0 IGO. Translations—If you create a translation of this work, please add the following disclaimer along with theattribution: This translation was not created by The World Bank and should not be considered an official WorldBank translation. The World Bank shall not be liable for any content or error in this translation. Any queries on rights and licenses, including subsidiary rights, should be addressed to World Bank Publications,The World Bank Group, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2625; e-mail:pubrights@ worldbank.org. Acknowledgments Türkiye Poverty and Equity Assessment is a product of the World Bank Türkiye Country Office and receivedstrategic guidance from J. Humberto Lopez, Country Director for Türkiye.The core team was led by CigdemCelik (Economist, Poverty and Equity) and Samuel Freije Rodriguez (Lead Economist, Poverty and Equity),and included Meliz Tyurkileri (Consultant, Poverty and Equity) and Santiago Garriga (Consultant, Poverty andEquity). The team expresses its special gratitude to Elizaveta Perova (Senior Economist,Poverty and Equity)for her contributions in addressing comments and feedback to the text from government counterparts. The team is grateful to Salman Zaidi (Practice Manager, Poverty and Equity), Hans Anand Beck (PracticeManager, Economic Policy), Heba Elgazzar (Program Leader, Social Protection), Elizaveta Perova (SeniorEconomist, Poverty and Equity), Claire Hollweg (Program Leader, Prosperity), Utku Ozmen (SeniorEconomist, Economic Policy), Shomikho Raha (Senior Governance and Public Sector Specialist, Institutions),Korhan Yazgan (Operations Officer, Türkiye Country Unit) for their inputs and advice; to Ambar Narayan(Practice Manager, Poverty and Equity), Metin Nebiler (Senior Economist, Poverty and Equity) and Ana MariaMunoz Boudet (Lead Economist, Poverty and Equity) for their peer review; and Berkin Ilhan Demirsoy foradministrative support. The team is equally grateful to colleagues from the Ministry of Finance and Treasury, General Directorate ofEconomic Programs and Research, Ministry of Family and Social Services, Central Bank of the Republic ofTürkiye and Turkish Statistical Institute for their feedback and technical insights. Contents Acknowledgments..................................................................................................................................3Introduction and Summary....................................................................................................................7Recent literature on poverty, inequality and mobility in Türkiye............................................................................7Summary of main findings............................................................................................................................................9Policy Proposals:..........................................................................................................................................................16I. Poverty Trends...................................................................................................................................19II. Inequality and Shared Prosperity...........................................................................................