WIDENING INCOME INEQUALITY IN THE LAST DECADES: TURKISH CASE

Year 2019, , 24 - 28, 30.07.2019

Kamil Necdet Ar Meliha Burcu Kines

https://doi.org/10.17261/Pressacademia.2019.1059

Abstract

Purpose- This research proposes some
mechanisms to improve income inequality for Turkish Economy.

Methodology- Income inequality is concerned with how total
income is distributed between individuals, households or other demographic
groups, which is also called personal income distribution. According to various
international reports and studies, income inequality has been rising in a
number of countries in recent years and has been a growing concern in academic
world. Income equality has various aspects and many contributing factors.
Transfers and benefits are the most important factors contributing to reducing
inequality, but these alone cannot address the issue of rising inequalities in
countries where unemployment continues to be high, which requires intervention
in the labour markets. There are a variety of methods of measuring income
inequality but this paper will focus on the most popular measure, Gini index,
which ranges 0 (perfect equality) and 1 (perfect inequality). In this respect,
Turkey will be taken as a case to review. In this study; based on literature
review, especially by the means of some mechanisms, some theoritical findings
and solutions are proposed for The Turkish economy.

Findings- The three main disruptive factors which deteriorate income
equality can be listed as inflation, unemployment and real wages. The most effective methods are to strengthen
the consciousness of the employees, trade unions, public opinion, media,
nongovernmental organisations and all parties’ concerned (social awareness).

Conclusion- After the weakening of social state structures and the
role of public influence in economies, the income and wealth distribution shows
a significant unfair trend for labour and the lower layers of societies. When
Turkey is taken into account, the economic and social parameters show a big
negative gap while comparing the EU and advanced countries. To rectify the
income inequality problems requires international and national socio-economic
measures.

Keywords

Income inequality, unemployment, deregulation, Turkish economy, economical policies

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