Income Distribution in Turkey during the Global Financial Crisis

Abstract

The aim of this study is to examine mechanism responsible for the behavior of the income and earning inequality in Turkey during the global financial crisis based on data from the 2006 to 2014 Income and Living Conditions Survey. Gini decomposition by income source is employed in order to provide an analysis of the contribution of the various income sources to the evolution of income inequality and to assess the impact of a marginal percentage change in the income from a particular source on income inequality. For examining the contributions of specific variables (education, position in occupation, economic sector) to the interpretation of labor earnings inequality in terms of their gross and marginal contribution, we use static decomposition of Theil T index.

Public Debt and Income Inequality in Turkey

“…Income inequality in Turkey measured by Gini coefficient decreased in recent years according to Sefil-Tansever (2017). The calculations of income inequality in Turkey are based on Survey on Income and Living Conditions (SILC) data gathered by Turkish Statistical Institute (TURKSTAT, 2018b).…”

“…The calculations of income inequality in Turkey are based on Survey on Income and Living Conditions (SILC) data gathered by Turkish Statistical Institute (TURKSTAT, 2018b). According to inequality decomposition used by Sefil-Tansever (2017), inequality in income distribution mainly comes from labour and entrepreneurship earnings for the period between 2006 and 2014 (SILC data started to be collected in 2006). The weight of labour earnings in income inequality increased since 2006, while the weight of entrepreneurship declined.…”