Abstract (may include machine translation)
Individual income distribution and associated social
policies are commonly studied topics both for developed and
developing countries. However, the relationship between functional
and personal income distribution, the consequences for inequality
and their development over time are not well researched in many
cases like Turkey. While labour share in the country has rapidly fallen
since 1990s with a slight recovery in mid-2000s, the individual
distribution is claimed to be improving by official estimations over the entire period. The study first aims to examine how primary and
secondary income distributions affect each other. Then, by looking at
who receives labor and non-labor factor incomes, and by estimating
Gini coefficients for each income category, the impact of functional
income on overall inequality is analyzed in the paper. According to
our findings, over the period under consideration, interest income
and non-agricultural entrepreneurial income are concentrated more in
the hands of the richest individuals. The effect of changes in the
labor income is less clear in Turkey since it is a major source for all
income brackets. In addition, the rise in the shares of interest and real
estate incomes most adversely affect the individual income
distribution, and heighten economic inequality.
policies are commonly studied topics both for developed and
developing countries. However, the relationship between functional
and personal income distribution, the consequences for inequality
and their development over time are not well researched in many
cases like Turkey. While labour share in the country has rapidly fallen
since 1990s with a slight recovery in mid-2000s, the individual
distribution is claimed to be improving by official estimations over the entire period. The study first aims to examine how primary and
secondary income distributions affect each other. Then, by looking at
who receives labor and non-labor factor incomes, and by estimating
Gini coefficients for each income category, the impact of functional
income on overall inequality is analyzed in the paper. According to
our findings, over the period under consideration, interest income
and non-agricultural entrepreneurial income are concentrated more in
the hands of the richest individuals. The effect of changes in the
labor income is less clear in Turkey since it is a major source for all
income brackets. In addition, the rise in the shares of interest and real
estate incomes most adversely affect the individual income
distribution, and heighten economic inequality.
| Translated title of the contribution | Changing Share of Labor and Income Distribution in Turkey |
|---|---|
| Original language | Turkish |
| Pages (from-to) | 349-370 |
| Number of pages | 22 |
| Journal | Çalışma ve Toplum |
| Volume | 60 |
| Issue number | 1 |
| State | Published - 2019 |
Keywords
- functional income distribution
- individual income distribution
- factor incomes
- labour
- capital
- inequality