erc/metu
INTERNATIONAL CONFERENCE IN ECONOMICS  IV
September 13-16, 2000, Ankara

Explaining the Causes of Income Inequality across the Provinces of Turkey

Burç Ülengin (Istanbul Technical University)
Berk Ataman (Istanbul Technical University)

Abstract  

The purpose of this paper is to investigate the determinants of income distribution in the provinces of Turkey. The causes of inequality will be attributed to the effects of industrial structure, demographic, economic, educational, labor force and other socio-economic characteristics. Also the effect of internal migration –usually given lower importance in the search for explanations of regional income inequality- will be examined. In the analysis the results of “The Household Income Distribution Survey 1994” will be used. Many studies of income inequality have focused on the growing gap throughout the years. Also a number of regional income distribution studies of Turkey tried to explain the differences with some quantitative methods. But some other studies in the literature have attempted to explain the causes of income inequality by using cross-sectional or panel data. Those studies in literature incorporate additional cross-sectional information by making international comparisons. International comparisons offer the advantage of considering the total impact of differences in social norms and labor market institutions. So the usage of within national provincal data will offer us similar advantages found in international comparisons.

Economic Research Center
Middle East Technical University
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e-mail: metuerc@metu.edu.tr