Economic Nature of Social Inequality, The Impacts of Education and Health Expenditures, and Unemployment on Income Inequality in Turkey and Selected OECD Countries

Year 2021, Volume: 6 Issue: 2, 37 - 43, 30.12.2021

Neslihan Şenol , Ayhan Orhan

Abstract

Income inequality is one of the important problems that await solution and discussed in developed countries as well as in developing countries. In this empirical study, the impacts of government education expenditures, health expenditures, and unemployment on income inequality has been investigated using panel data set consisting of total 15 selected OECD countries including Turkey for the period of 2002-2018. The results of the analysis revealed that increases in the ratio of government education expenditures to Gross Domestic Product (GDP) and health expenditures to GDP contribute to reducing inequality in income distribution, while increase in unemployment rate increase income inequality for the selected OECD countries.

Keywords

Income inequality, education, health, unemployment, panel data

Sosyal Eşitsizliğin İktisadi Doğası, Türkiye ve Seçilmiş OECD Ülkelerinde Eğitim ve Sağlık Harcamaları ile İşsizliğin Gelir Eşitsizliği Üzerine Etkileri

Abstract

Gelir eşitsizliği, gelişmekte olan ülkelerde olduğu gibi, gelişmiş ülkelerde de çözüm bekleyen ve üzerinde tartışılan önemli sorunlar arasındadır. Bu ampirik çalışmada, kamu eğitim harcamaları ile sağlık harcamalarının ve işsizliğin gelir eşitsizliği üzerindeki etkilerini 2002-2018 periyodu için Türkiye dahil toplam 15 seçilmiş OECD ülkesinden oluşan panel veri seti kullanarak araştırılmıştır. Analizin sonuçları, seçilmiş OECD ülkelerinde kamu eğitim harcamalarının Gayrisafi Yurtiçi Hasılaya (GSYİH) oranı ve sağlık harcamalarının GSYİH’ye oranındaki artışların gelir dağılımındaki eşitsizliğe azaltıcı anlamda katkı sağladığını, işsizlik oranındaki artışın ise gelir eşitsizliğini artırdığını ortaya koymuştur.

Keywords

Gelir eşitsizliği, eğiim, sağlık, işsizlik, panel veri

References

• Abdelbaki, H. H. (2012). An analysis of income inequality and education inequality in Bahrain. Modern Economy, 3(5): 675-685.
• Aksoğan, G. & Elveren, A.Y. (2012). Türkiye’de Savunma, Sağlık ve Eğitim Harcamaları ve Gelir Eşitsizliği (1970-2008): Ekonometrik Bir İnceleme, Sosyoekonomi, 1, 264-280.
• Alderson, A., Nielsen F. (2002). Globalization and the Great U-Turn: Income Inequality Trends in 16 OECD Countries, American Journal of Sociology, 107(5), 1244-1299.
• Alvaredo, F., Chancel, L., Piketty, T., Saez, E, & Zucman, G. (2019). Dünya Eşitsizlik Raporu 2018. İstanbul: Türkiye İş Bankası Kültür Yayınları.
• Anderson, E., D’Orey, M. A. J., Duvendack, M., & Esposito, L. (2017). Does government spending affect income inequality? A meta-regression analysis, Journal of economic surveys, 31(4): 1-27.
• Barro, R. (2000). Inequality and Growth in a Panel of Countries, Journal of Economic Growth, 5(1), 5-32.
• Becker, G. S., Chiswick, B. R. (1966). Education and the distribution of earnings. American Economic Review 56(2): 358-369.
• Becker, G. S. (1962). Investment in Human Capital - a Theoretical Analysis, Journal of Political Economy, 70, 9-49.
• Berry, C.R., & Glaeser, E.L. (2005). The Divergence of Human Capital Levels across Cities, Papers in Regional Science, 84, 407-444.
• Checchi, D. (2000). Does Educational Achievement Help to Explain Income Inequality?, Departmental Working Papers (11),1-38.
• Chiswick, B. R. (1971). Earnings inequality and economic development. The Quarterly Journal of Economics 85(1): 21-39.
• Claus, I., Martinez-Vazquez, J., & Vulovic, V. (2012). Government fiscal policies and redistribution in Asian countries, ABD Economics Working Paper Series 310, Manila: Asian Development Bank, 1-47.
• Collins, C. (2016). Born on Third Base. West River Junction: Chelsea Green Publishing.
• Dabla-Norris, E., Kochhar, K., Ricka, F., Suphaphiphat, N. and Tsounta, E. (2015). Causes and Consequences of Income Inequality: A Global Perspective. IMF Staff Discussion Note, No. 15/13.
• Deyshappriya, N.P.R. (2017). Impact of Macroeconomic Factors on Income Inequality and Income Distribution in Asian Countries, ADBI Working Paper Series, 696, 1-16.
• Digdowiseiso, K. (2009). Education inequality, economic growth, and income inequality: Evidence from Indonesia, 1996-2005. MPRA Paper No. 17792.
• Gregorio J., Lee, & J-W. (2002). Education and Income Inequality: New Evidence from Cross-Country Data, Review of Income and Wealth, Series 48(3), 395-416.
• Gustafsson, B.J. & Johansson, M. (1999). In Search for Smoking Gun: What Makes Income Inequality Vary Over Time in Different Countries?, LIS Working Paper Series, No.172, Luxemburg Income Study (LIS), Luxemburg.
• Gylfason, T., & Zoega, G. (2003). Education, Social Equality and Economic Growth: A View of the Landscape, CESifo Economic Studies, 49, 557-579.
• Jimenez, E. (1986). The Public Subsidization of Education and Health in Developing Countries: A Review of Equity and Efficiency,” Research Observer, 1(1), 111-129.
• Lin, C-H. (2007). Education Expansion, Education Inequality, and Income Inequality: Evidence from Taiwan 1976-2003, Social Indicators Research, 80, 601-615.
• Lusting, N. (2015). Government Spending on Education and Health: Evidence from Thirteen Developing Countries in the Commitment to Equity Project, CEQ Working Paper, No. 30, 1-30.
• Mincer, J. (1970). The distribution of labor incomes: A survey with special reference to the human capital approach. Journal of Economic Literature 8(1): 1-26.
• Mincer, J. (1958). Investment in Human Capital and Personal Income Distribution, Journal of Political Economy, 66, 281-302.
• Mughal, M. & Diawara, B. (2011). Explaning Income Inequalities in Developing Countries: The Role of Human Capital, Centre d’Analyse Theorique et de Traitement des donnees economiques CATT WP No 2, 1-22.
• O`Donnell, O., van Doorslaer, E., van Ourti, T. (2013). Health and Inequality. Tinbergen Institute Discussion Paper, No. 13/170/V.
• Odeh, M.A. & Okoye, C. (2014). Poverty reduction policy and youth unemployment in Nigeria, Public Policy and Administration Research, 3(4), 92-103.
• OECD (2019). Society at a Glance 2019: OECD Social Indicators, OECD Publishing: Paris.
• OECD (2020). Education at a Glance 2020: OECD Indicators, OECD Publishing: Paris.
• Öztürk, N. (2017). Gelir Dağılımının İktisadi Analizi. İstanbul: Ekin Yayınevi.
• Parasız, İ., (1996). İktisadın A B C’si, Ezgi Kitabevi :Bursa.
• Park, K.H. (1996). Educational expansion and educational inequality on income distribution, Economics of Education Review, 15(1), 51-58.
• Piketty, T. (2014). Capital in the 21st Century. Cambridge: The Belknap Press of Harvard University Press.
• Pose A. R., Tselios, V. (2009). Education and income inequality in the regions of the European Union. Journal of Regional Science 49 (3): 411–437.
• Ram, R. (1989). Can educational expansion reduce income inequality in less-developed countries? Economics of Education Review 8 (2): 185-195.
• Schultz, T.W. (1961). Investment in Human Capital, American Economic Review, 51, 1-17.
• Schultz, T. W. (1963). The economic value of education. New York: Columbia University Press.
• Schultz, T. W. (1971). Investment in Human Capital. The Role of Education and of Research. New York: The Free Press.
• Shapiro, J.M. (2006). Smart Cities: Quality of Life, Productivity, and the Growth Effects of Human Capital, Review of Economics and Statistics, 88, 324-335.
• Šileika, A., & Bekerytė, J. (2013). Theoretical Issues of Relationship between Unemployment, Poverty and Crime in Sustainable Development. Journal of Security and Sustainability Issues, 2(3), 59-70.
• Stiglitz, J.E. (2013). The Price of Inequality: How Today’s Divided Society Endangers our Future. New York: W.W. Norton and Company.
• Şantaş, G., Demirgil, F., Şantaş, F. (2019). Sağlık Harcamaları-Gelir Dağılımı İlişkisi: Türkiye için bir ARDL Sınır Testi Yaklaşımı, Yönetim ve Ekonomi Araştırmaları Dergisi, 17(1), 412-427.
• Tinbergen, J. (1972). The impact of education on income distribution. Review of Income and wealth 18(3): 255–265, https://doi.org/10.1111/j.1475-4991.1972.tb00865.x.
• Uysal, Y. (2007). Gelir Dağılımı Türleri Arasındaki İlişkiler Perspektifinde Türkiye’de Gelir Dağılımının Düzenlenmesine Yönelik Öneriler, Sosyal Bilimler Enstitüsü Dergisi, 9(2), 248-292.
• Ward, T., Lelkes, O., Sutherland, H., & Tóth, I. G. (2009). European Inequalities: Social Inclusion and Income Distribution in the European Union. TÁRKI Social Research Institute: Budapest.
• Wells, R. (2006). Education’s Effect on Income Inequality: An Economic Globalisation Perspective, Globalisation, Societies and Education, 4(3), 371-391.