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Cross-Sectional Facts for Macroeconomists: Wage, Income and Consumption Inequality in Turkey

Author

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  • Mehmet Nazım Tamkoç

    (Arizona State University)

  • Orhan Torul

    (Boǧaziçi University)

Abstract

We investigate the evolution of Turkey’s wage, income and consumption inequalities using a cross-country comparable methodology and the Turkish Statistical Institute’s Household Budget Survey and the Survey of Income and Living Conditions micro data sets. Turkey’s wage, income and consumption inequalities all exhibit downward time trends over the 2002-2016 period. This observation aligns well with the rapid minimum wage growth over the period. While wage inequality estimates display strong countercyclicality, income and consumption inequalities exhibit rather acyclical time-series movements. While recent education premium estimates of Turkey are similar to those in the early 2000s, estimates of recent gender and experience premiums, as well as residual wage inequality are lower. Income and consumption inequality estimates exhibit similar time trends with moderate level differences, and these trends are robust to the choice of inequality metrics.

Suggested Citation

  • Mehmet Nazım Tamkoç & Orhan Torul, 2020. "Cross-Sectional Facts for Macroeconomists: Wage, Income and Consumption Inequality in Turkey," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 18(2), pages 239-259, June.
    • Handle: RePEc:spr:joecin:v:18:y:2020:i:2:d:10.1007_s10888-019-09436-4
    DOI: 10.1007/s10888-019-09436-4
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    References listed on IDEAS

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    Cited by:

    1. Ping Zhang & Weiwei Li & Kaixu Zhao & Sidong Zhao, 2021. "Spatial Pattern and Driving Mechanism of Urban–Rural Income Gap in Gansu Province of China," Land, MDPI, vol. 10(10), pages 1-29, September.
    2. Ozan Bakis & Sezgin Polat, 2023. "Wage inequality dynamics in Turkey," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 50(3), pages 657-694, August.
    3. Bayram Cakir & Ipek Ergul, 2019. "Inequality in Turkey: Looking Beyond Growth," Papers 1910.11780, arXiv.org.
    4. Xiaoshi Zhou & Wanglin Ma & Gucheng Li & Huanguang Qiu, 2020. "Farm machinery use and maize yields in China: an analysis accounting for selection bias and heterogeneity," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 64(4), pages 1282-1307, October.
    5. Emine TAHSİN, 2019. "An Investigation of the Palma Ratio for Turkey Both on National and Regional Level," Sosyoekonomi Journal, Sosyoekonomi Society, issue 27(41).
    6. Emrehan Aktuğ & Tolga Umut Kuzubaş & Orhan Torul, 2021. "Heterogeneity in labor income profiles: evidence from Turkey," Empirical Economics, Springer, vol. 60(5), pages 2557-2587, May.
    7. Manuela A. de Paz-Báñez & Celia Sánchez-López & María José Asensio-Coto, 2024. "Effects of the Minimum Wage (MW) on Income Inequality: Systematic Review and Analysis of the Spanish Case," Economies, MDPI, vol. 12(9), pages 1-39, August.
    8. Nizam MelikÅŸah Demirtas & Orhan Torul, 2021. "Intergenerational Income Mobility in Turkey Abstract:," Working Papers 2021/05, Bogazici University, Department of Economics.

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