Time Deficits and Poverty: The Levy Institute Measure of Time and Consumption Poverty for Turkey

Abstract

This study presents a new methodology for a two-dimesional poverty measure for Turkey taking into account necessary consumption as well as the required household production neded to achieve a minium living standard. Official poverty lines in Turkey and other countries ignore the fact that unpaid household production contributes to the fulfillment of material needs and wants that are essential to attaining a minimum standard of living. Standard measurements of poverty assume that all households and individuals have enough time to adequately attend to the needs of household members, yet, some households may not have sufficient time, and they thus experience "time deficits." If a household experiencing a time deficit cannot afford to cover it by buying market substitutes (e.g., hiring a care provider), that household will encounter hardships not reflected in the official poverty measures.

Keywords: Measurement of poverty, household production

JEL Classification: I32, D24