FROM LUXURY TO NECESSITY: THE CONVERGENCE OF COMMUNICATION EXPENDITURE ACROSS INCOME GROUPS IN TURKEY (2002–2022)

Abstract

This study explores the transformation of communication expenditure in Turkey between 2002 and 2022, focusing on whether digital services—once seen as discretionary—have become essential across all income levels. Using nationally representative micro-level data from TurkStat’s Household Budget Surveys and guided by the COICOP 2018 classification, I apply a suite of econometric models: pooled OLS, fixed-effects panel regression, income elasticity analysis, and Bai-Perron structural break testing. The results reveal strong convergence in communication expenditure shares across quintiles, declining elasticity values indicative of necessity goods, and a significant structural shift in 2012. These trends underscore the rising indispensability of digital communication for socio-economic participation. I conclude by recommending policy interventions such as subsidized broadband access, enhanced digital literacy, and revisions to consumption indices to better reflect digital inclusion. This study contributes to the broader debate on digital inequality and reconsiders classical consumption theory considering technological transformation.