Economic crises and the social structuring of economic hardship: the impact of the 2001 Turkish crisis

Abstract

Drawing on a growing cross-national literature on the social impact of economic crises, this paper investigates the social structuring of economic hardship among urban households in Turkey following the 2001 economic crisis. My goal is to compare the Turkish crisis to other recent crises, particularly in Latin America and Asia, and to assess competing claims about the vulnerability of different social groups. Using data from the study entitled Turkish Family Life under Siege a nationally representative sample of urban households of work-aged married couples the results paint a picture of widespread social devastation as measured by key labor market outcomes: job loss, unemployment duration, earnings instability, and under-employment. The findings suggest that existing patterns of social inequality related to class and status education, age, ethnicity, and occupation were reinforced and exacerbated by the 2001 macro-economic crisis. In contrast to claims that the impact was skewed towards higher socio-economic groups, the brunt of the 2001 crisis was felt by disadvantaged social groups with few assets to buffer economic hardship. Economic hardship was higher among labor force participants who are younger, less educated, male, Kurdish-speakers, private-sector employees, and residents of non-central regions. I discuss the implications with respect to the previous research on economic crises, the role of Turkish contextual factors, and the need for social policy reform, particularly in the context of the current global economic crisis.