EVALUATION OF INCOME DISTRIBUTION DYNAMICS IN TÜRKİYE THROUGH WAGE INCOME

Authors : Bekir Eren

Pages : 911-936

Doi:10.17130/ijmeb.1607510

View : 70 | Download : 90

Publication Date : 2025-09-30

Article Type : Research Paper

Abstract :The aim of this study is to analyze the factors affecting income distribution in Türkiye based on wage income. The study contributes to academic literature by using wage income as a leading indicator for the first time, covering a long period with quarterly data, and addressing the effects of fiscal policy, loans, inflation, and productivity together. The dynamics of wage income were investigated in the 2006Q1-2024Q2 period using cointegration analysis, OLS, and error correction model. The findings imply that inflation, taxes, and loans negatively affect wage income and income distribution, while labor productivity, current transfers, and the ratio of minimum wage to average income have positive effects. These impacts are significant in the short and long term. In addition, it is found that the unconventional economic policies implemented since the end of 2021 negatively affected wage income. It is concluded that to achieve improvement in wage income and income distribution, it is necessary to ensure price stability, determine the minimum wage at a level that can provide the necessary living standards, use taxes effectively, and support low-income groups with current transfers. Moreover, it is important to consider the income distribution results in designing economic policies.
Keywords : Ücret geliri, Verimlilik, Enflasyon, Maliye politikası, Hata düzeltme modeli.

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