The Social Impact of the 2008 Global Economic Crisis on Neighborhoods, Households, and Individuals in Turkey

Abstract

This paper deals with the social impact of the 2008 global economic crisis on urban Turkey. Empirical evidence drawn from recently collected survey data using a multi-stage, stratified, random cluster sample illustrates the extent to which the economic crisis was also a social crisis. Analyses of three different levels—the neighborhood, household, and individual—highlight multiple detrimental effects, as seen in increased neighborhood social problems, household economic hardship and associated coping strategies, and individual mental and physical health problems. While post-crisis economic hardship, as measured by job loss, earnings reduction, and underemployment, was wide-spread, lower socioeconomic groups, renters, and Kurdish households suffered more. Economic hardship was also associated with a range of household coping strategies, both of which represent potential longer-term secondary social impacts, particularly in the Turkish context, when government safety nets are weak and families are left to fend for themselves. If appropriate measures are not taken, the long-term effects may go beyond the current generation of workers to affect the future wellbeing of vulnerable groups.