Comparing the Relevance of Wealth Indices for Turkish Households
2. International Paris Scientific Researches and Innovation Congress, Paris, Fransa, 15 - 16 Şubat 2025, ss.107, (Özet Bildiri)
- Yayın Türü: Bildiri / Özet Bildiri
- Basıldığı Şehir: Paris
- Basıldığı Ülke: Fransa
- Sayfa Sayıları: ss.107
- Ankara Yıldırım Beyazıt Üniversitesi Adresli: Evet
Özet
The construction of wealth indices is a critical component for understanding socioeconomic disparities, particularly in low- and middle-income countries (LMICs). The wealth index functions as an indicator of household economic status alongside income and consumption metrics. In the absence of comprehensive asset data, researchers frequently employ principal component analysis (PCA) to generate a composite score derived from a variety of household assets, including durable goods and housing attributes. The selection of variables, in conjunction with the nature of the data employed, significantly influences the outcomes of PCA analysis and, consequently, the derived wealth index. This study develops multiple wealth indices utilizing standard and polychoric PCA scores for Turkish households, drawing upon data spanning two decades. This study evaluates the applicability of these indices for measuring socioeconomic status in Türkiye. The findings indicate that when binary variables are consolidated into an ordinal variable, the outcomes of standard PCA and polychoric PCA yield nearly identical scores. The wealth indices account for a greater proportion of the variation observed in asset variables, and the correlations between the asset index and household consumption, as well as between the asset index and household income, increase when aggregated and continuous variables are used in the PCA.