How Could Investment Incentives Address the Income Inequality in Turkey

Authors : Emir ÇELEBİ

Pages : 4-23

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Publication Date : 2022-06-23

Article Type : Research Paper

Abstract :Turkey still finds itself among countries with high income inequality, although it has diminished over the long term. Investment incentives have always been in place as a primary policy tool to alleviate regional disparities along with its other macroeconomic aspirations. To bring concrete recommendations on income inequality, we have examined inequality data and the related literature before dwelling on the investment incentive framework. Regional disparities, quality and attainability of education, lower labour participation and wages of women, the informality, distortion of factor revenues in favour of entrepreneurs and weak labour productivity gains are the major drivers of inequality. Accordingly, in the last episode, concrete policy implications are delivered for the investment incentive system to contribute to a fair distribution.
Keywords : Income Inequality, The Investment Incentives, Turkey