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

Year 2014, Volume: 3 Issue: 2, 17 - 43, 01.12.2014

Başak İşıl Çetin Musa Gün

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

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