THE IMPACT OF RETIREMENT ON HOUSEHOLDS’ RECREATION AND CULTURE EXPENDITURES: A STUDY ON TURKEY

Abstract

Abstract: Recreation and cultural expenditures that can be considered as leisure expenditures in the literature cover all kinds of cultural activities, cultural goods and services. The purpose of this study is to examine the households’ recreation and culture expenditures for retired and near retired households in order to better understand the Dynamics associated with the movement to retirement status.  Based on the Gary Becker’s “Household Production Theory”, results of the logistic analyses which uses data from the 2013 Budget Survey of Turkish Statistical Institute suggest that retirement, total expenditures and education had positive impacts on recreation and cultural expenditure of Households in Turkey. Although retired households have more expenditure on recreation and culture compared to near-retired households, for near retired households, greater non-wage income significantly increased expenditures on recreation and culture.  For retired and near-retired households, greater total expenditures and education increased the expenditures, while age decreased expenditures. Coefficient of expenditure elasticity that obtained from the result of the Engel analysis shows that cultural goods and services are luxury goods. It is thought that the results of this study may provide useful insights for policy makers as well as the suppliers of recreational and cultural goods and services.