THE DISTRIBUTION OF INCOME: EVIDENCE FROM THE TURKISH CASE (2006-2015)

Abstract

This study analyzes income distribution types, both individual and functional, in terms of the first and the last quintiles in Turkey from 2006 to 2015. In this respect, the study first reveals how income types represented by functional income distribution are distributed for the first and last quintiles. Secondly, the inequalities arising within different income types obtained by the respective income quintiles are involved to the analysis. TURKSTAT Income and Living Conditions Survey dataset has been used in the study. With regards to methodology, first the variations that occurred in the shares obtained by households in different income categories for the first and last income quintiles have been used from 2006 to 2015. The improving or deteriorating effects of the relevant income quintiles on income inequality have been put forth for these variations. Then, the Lorenz curves and the Gini coefficients have been used to assess the distribution within each income category. According to the findings of the study, items that increase income equality for the first quintile are salaries and wages, pensions and survivors’ benefits, property income and other social transfers. On the other hand, casual incomes, entrepreneurial incomes, household transfers and rental incomes are the income categories that deteriorate income equality against the first income quintile. While wages and salaries have a positive effect on establishing income equality within this category, rental and property income are the types of income that reveal the most unequal distribution within themselves.