EDUCATION AND INCOME INEQUALITY IN TURKEY: NEW EVIDENCE FROM PANEL DATA ANALYSIS

Year 2016, Volume: 38 Issue: 2, 207 - 222, 25.12.2016

Esra Öztürk Ayşegül Kayaoğlu

https://doi.org/10.14780/muiibd.281399

Cited By: 1

Abstract

Income gini coefficient shows that income inequality has a downward trend in Turkey between 2008

and 2013. As it is expected, the east part of Turkey has higher income distortions, while Marmara

and Black Sea regions have relatively lower income Gini coefficients. In this paper, we also computed

education Gini at the provincial level from 2008 to 2013. Similar to the income Gini index, the

education Gini coefficient is also higher in Eastern and South-eastern regions. Besides, the data show

that the provinces that have more equal education distribution are generally located in the Marmara

and Central Anatolia regions. In this study, we examine the impact of education inequality on income

inequality by analysing provincial level panel data between 2008 and 2013. We have employed both

static and dynamic panel data models and also controlled for the endogeneity problem. Econometric

analysis provides evidence for a negative association between education Gini coefficient and income

inequality.

Keywords

Income Inequality, Education Inequality, Gini coefficient, Turkey

References

• Başlevent C. and Dayıoğlu M., “A Household Level Examination of Regional Income Disparity in Turkey”, METU Studies in Development Journal, 32 (December), 2005, pp. 275-302.
• Baum C. F., An Introduction to Modern Econometrics Using Stata, Texas: Stata Press, 2006.
• Bils M. and Klenow P. J., “Does Schooling Cause Growth?” American Economic Review, 90(5), 2000, pp. 1160-1183.
• Castelló A. and Doménech R., “Human Capital Inequality and Economic Growth: Some New Evidence”, The Economic Journal. Vol. 112, No. 478, Conference Papers, 2002, pp. C187–C200.
• Checchi D., “Education, Inequality and Income Inequality. Distributional Analysis”, Research Programme Discussion Paper. No: DARP 52. The Toyota Centre, London, 2001.
• Duman A.: Education and Income Inequality in Turkey: Does Schooling Matter?, Financial Theory and Practice. 32 (3), 2008, pp. 369-385.
• Földvari P. and Van Leeuwen B., “Educational and Income Inequality in Europe, ca. 1870-2000”, Cliometrica. 8, 2014, pp.271-300.
• Gregorio J. D. and Lee J.-W., “Education and Income Inequality: New Evidence from Cross-Country Data”, Review of Income and Wealth. Series. 48, No. 3, 2002.
• Güngör N. D. “Education, Human Capital Inequality and Economic Growth: Evidence from Turkey”, Regional and Sectoral Economic Studies, Vol. 10-2, 2010.
• Kayaoglu, A. and Naval J., “Urbanization, Education and the Growth Backlog of Africa”, forthcoming.
• Lopez R., Thomas V. and Wang Y., “Addressing the Education Puzzle: The Distribution of Education and Economic Reform”, Policy Research Working Paper No: 2031. The World Bank, Washington, D.C., 1998
• OECD Factbook, Economic, Environmental and Social Statistics, OECD Publishing. OECD, Paris, 2014.
• O’Neill D., “Education and Income Growth: Implications for Cross-Country Inequality”, Journal of Political Economy. Vol. 103, No. 6, 1995, pp. 1289–1301
• Park K. H., “Educational Expansion and Educational Inequality on Income Distribution, Economics of education Review”, Vol. 15, No. 1, 1996, pp. 51-58.
• Selim R., Günçavdı Ö. And Bayar A.A., “Türkiye’de Bireysel Gelir Dağılımı Eşitsizlikleri: Fonksiyonel Gelir Kaynakları ve Bölgesel Eşitsizlikler”, TÜSİAD Report No: TÜSİAD-T/2014-06/554. TÜSİAD, İstanbul, 2014.
• Thomas V., Wang Y. and Fan X., “Measuring Education Inequality: Gini Coefficients of Education”, Policy Research Working Paper No: 2525. The World Bank, Washington, D.C., 2001.
• Tomul E., “Education Inequality in Turkey: An Evolution by Gini Index”, Education and Science, 2011, Vol. 36, No 160, 2011.
• World Bank: Introduction to Poverty Analysis, Working Paper No: 90288. World Bank, Washington, D.C., 2014.
• Yanık B.: Türkiye’de Eğitim Eşitsizliği. Unpublished Master Thesis, ITU, İstanbul, 2001.
• Yanık-İlhan B. and Aydıner-Avşar N., Education Inequality Among Working Age Population in Turkey: A Cohort Analysis, Emerging Patterns of Work and Turkish Labour Market Challenges under Globalization, Netherlands: Wolters Kluwer, 2013.