Using a balanced panel data set drawn from TurkStat’s Income and Living Conditions Survey, we examine the transition of Turkish households into and out of poverty. During the four year period (2007-2010) under examination, the relative poverty rate in Turkey has declined moderately, implying that households were more likely to exit than enter poverty. In addition to a descriptive analysis in which poor, non-poor, entrant, and exitor households are compared in terms of basic household characteristics, the empirical work features the estimation of binary choice models that assess the relative importance of these factors in contributing to a change in the poverty status of the households. These models reveal that factors such as the employment status of the household head and changes in household composition are associated with poverty status changes, but changes in the amounts of labor and other types of income have greater explanatory power.