Increasing instability due to the crises and the transformation of the world economies over time causes significant changes in income inequality and employment rates (unemployment rates). The effects of these changes may vary from country to country and periodically. In this respect, unlike the literature, it is aimed to detect the nexus between the employment rate and income inequality and the aspect of the nexus, instead of the unemployment rate, which includes the labor segment that does not actively participate in the labor force. For the period 1996-2018 and 60 developed and developing countries, a balanced panel data set is generated and the effect of employment rate, urbanization, the birth rate per woman, gross fixed capital formation (investment), and human development variables on income inequality is estimated by random effects panel Tobit analysis. Three different models are set up within the scope of random effects panel Tobit analysis. According to uncensored, censored from left and right random effects panel Tobit analysis findings, 1% increase in employment rate, investment, and human development variables reduces income inequality. On the other hand, a 1% increase in urban population and birth rate per woman variables increases income inequality.
Primary Language | Turkish |
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Journal Section | Articles |
Authors | |
Publication Date | March 31, 2022 |
Submission Date | April 27, 2021 |
Published in Issue | Year 2022 |
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