An Analysis of Income Types and Income Inequality: The Case of Turkey Between 2002 and 2009***

Abstract

In this study, ‘an analysis based on Shorrocks Decomposition’ has been used to determine the effects of the income types to the income inequality on the basis of households’ and individuals` incomes in Turkey. All results have been assessed and interpreted for the years between 2002 and 2009. The interest income is determined as the largest contributor of the income types to income inequality. It has been much more prominent especially in the periods of economic crises. The contributions of the interest, profit and rent incomes into the inequality are higher than the contributions of wage and transfer incomes, and differ in a significant way. Contrary to the expectations, transfer incomes have an effect of increasing total inequality

Keywords

• Shorrocks Decomposition, income types, income inequality, Turkey

References

1. Atkinson, A. B. & F. Bourguignon (2000), “Introduction: Income Distribution and Economics”, Handbook of Income Distribution, Eds. A. B. Atkinson & F. Bourguignon, Amsterdam, Elvesier, p. 1-58.
2. Ay, Özgür (2010), “Türkiye’de Vergi Yapısının Gelir Dağılımına Etkisi”, (Unpublished Doctoral Dissertation, Istanbul University, Institute of Social Sciences), Istanbul.
3. Bayar, Ayşe Aylin & Öner Günçavdı & Raziye Selim (2011), Inequality Effects of Sectoral Distribution: Evidence from Turkey, 4 May 2009, (Online) http://gdri.dreem.free. fr/wp-content/g2-1bayar_fullpaper_gdri_dreem_ayseaylin.pdf, p. 1-18.
4. Bedir, Serap & Kerem Karabulut (2011), “İç Borçların Gelir Dağılımı Üzerine Etkileri”, Ataturk University Economics and Administrative Sciences Journal, Volume: 25, Number: 1, p. 13-30.
5. Bosnalı, Ömer (1996), “Gelir Dağılımı Açısından Mali Araçlar ve Asgari Geçim İndirimi”, (Unpublished Doctoral Dissertation, Istanbul University, Institute of Social Sciences), Istanbul.
6. Charpentier, Arthur & Stéphane Mussard (2010), Income Inequality Games, Ithaca, New York, USA, Conference on Inequality: New Directions, (Online) http://www. lameta.univ-montp1.fr/Documents/DR2010-01.pdf, p. 1-26.
7. Cowell, F. A. (2000), “Measurement of Inequality”, Handbook of Income Distribution, Eds. A. B. Atkinson & F. Bourguignon, Amsterdam, Elvesier, p. 86-166.
8. Çağlar, Ünal (1998), “Milli Gelir ve Gelir Dağılımı Hesaplamalarında Bir Birim Olarak Aile”, Ekonomik Hesaplamalarda Bir Birim Olarak Aile, Ankara, Republic of Turkey Prime Ministry Family Research Institution Publications, p. 24-47.

9. Çetin, Başak Işıl (2013), İktisadi Sistemler Bağlamında Gelir Dağılımı - Kredi Ekonomisi İlişkisi ve Türkiye (The Relation Between Income Distribution and Credit Economy Within the Context of Economic Systems and Turkey), Centre for Labour and Social Security Training and Research (ÇASGEM), Publication No: 41, Ankara.
10. DPT (1995), “Gelir Dağılımı ve Politikaları Özel İhtisas Komisyonu Raporu” (Income Distribution and Policies Special Commission Report), SPO State Planning Organization Seventh Five-Year Development Plan Special Commission Report (December 1994), the New Turkey Magazine, E. 6, p. 283-341.
11. Gottschalk, Peter & Timothy M. Smeeding (2000), “Empirical Evidence on Income Inequality in Industrialized Countries”, Handbook of Income Distribution, Ed. By. A. B. Atkinson, F. Bourguignon, Amsterdam, Elvesier, p. 261-307.
12. Gürsel, Seyfettin & Hauk Levent & Raziye Selim & Özlem Sarıca (2000), Türkiye’de Bireysel Gelir Dağılımı ve Yoksulluk: Avrupa Birliği ile Karşılaştırma, Istanbul, TUSIAD Publication, Publication No: 295.
13. Jantti, Markus & Sheldon Danziger (2000), “Income Poverty in Advanced Countries”, Handbook of Income Distribution, Ed. By. A. B. Atkinson, F. Bourguignon, Amsterdam, Elvesier, p. 309-378.
14. Jasso, Guillermina & Samuel Kotz (2007), “Two Types of Inequality: Inequality Between Persons and Inequality Between Subgroups”, Germany, IZA Discussion Paper Series, No. 2749, p. 1-60.
15. Karaman, İsmail (1995), “Dünya’da ve Türkiye’de Gelir Dağılımı”, Journal of the New Turkey, S. 6, p.154-159.
16. Kurtipek, Rıdvan (2011), Türkiye İçin Gelir Grupları Arası Gelir Oluşum İlişkisinin Miyazawa Yöntemiyle İncelenmesi (Expertise Thesis), Republic of Turkey Ministry of Development, Publication No: 2830.
17. Molnar, Maria (2010), “Measuring the Impact of Redistribution on Income Inequality and Polarization”, Annals of the “Constantin Brâncuşi” University of Târgu Jiu, Economy Series, Issue 4, p. 1-27.
18. Peterson, Wallace C. (1994), Gelir İstihdam ve Ekonomik Büyüme, Trans. Talat Güllap, Erzurum Ataturk University Publications, No:763.
19. Sarc, Ömer Celâl (1970), Gelir Dağılımı: Dışarıda ve Türkiye’de, Istanbul, Economic and Social Studies Conference Board.
20. Selim, Raziye & Öner Günçavdı & Ayşe Aylin Bayar (2014), Türkiye’de Bireysel Gelir Dağılımı Eşitsizlikleri: Fonksiyonel Gelir Kaynakları ve Bölgesel Eşitsizlikler, Istanbul, TUSIAD, Publication No: GB / 2014-06 / 554.
21. Sen, Amartya (2000), “Social Justice and Distribution of Income”, Handbook of Income Distribution, Eds. A. B. Atkinson & F. Bourguignon, Amsterdam, Elvesier, p. 60-85.
22. Shorrocks, A. F. (1982), “Inequality Decomposition by Factor Components”, Econometrica, Vol. 50, No. 1, p. 193-212.
23. Snooks, Graeme Donald (1994), Portrait of the Family Within the Total Economy: a Study in Longrun Dynamics, Australia 1788-1990, UK: Cambridge University.
24. Stata Technical Bulletin (2011), Ed. H. Joseph Newton, March 1999, STB-48, (Online) http://www.stata.com/products/stb/journals/stb48.pdf.
25. Uzunhasanoğlu, Z. Defne (2007), “Türkiye’de Uygulanan Ekonomik ve Mali Politikaların Gelir Dağılımına Etkisi 1980-2005”, Tax Inspectors Foundation for Economic and Financial Research Competition, Ankara, p. 1-77.
26. Varlıer, Oktay (1982), Türkiye’de Kazanç Eşitsizliklerinin Nedenleri, Ankara, Gazi University.
27. World Bank (2000), Turkey: Economic Reforms, Living Standards and Social Welfare Study, Report No: 20029-TU.