8th Economics & Finance Conference, London

THE EXTRA COST OF LIVING DISABILITY FOR TURKISH HOUSEHOLDS

EGEMEN IPEK

Abstract:

This paper estimates model of the extra cost of living of households with members who have some limitations in work or/and daily activities in Turkey. The relationship between standard of living indicator and socioeconomic indicators, such as income, education level, social security, gender, age, and equivalent scaled household size is also examined using a standard of living approach (SoL). In the analysis, this relationship is estimated for the year of 2014 by applying both OLS and ordered Logit model on Household Budget Survey (HBS) data provided by TURKSTAT. Empirical results provide that, as expectedly, the standard of living indicator is positively correlated with education level, having a social security, and income. In addition, while extra cost of living for household with members who have some limitations in daily activities is 5% of household annual income, this value takes annual income’s 13% in households with individuals who have some limitations in work activity. Moreover, annual value of extra cost of disability is calculated for each household who have low, middle, and high standard of living, respectively as 2419, 4854 and 11253 Turkish Liras.

Keywords: disability; standard of living; ordered logit

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