Inequality in Turkey: Looking Beyond Growth

TL;DR

This paper explores how government spending on education and healthcare influences income inequality in Turkey, challenging the standard view that economic growth alone determines income distribution.

Contribution

It demonstrates that investments in human capital significantly affect income equality, highlighting factors beyond economic growth that policymakers should consider.

Findings

Economic growth can improve income equality with appropriate government expenditures.

Education and healthcare investments positively impact income equality.

Policy implications for achieving fairer income distribution in Turkey.

Abstract

This paper investigates the relationships between economic growth, investment in human capital and income equality in Turkey. The conclusion drawn based on the data from the OECD and the World Bank suggests that economic growth can improve income equality depending on the expenditures undertaken by the government. As opposed to the standard view that economic growth and income inequality are positively related, the findings of this paper suggest that other factors such as education and healthcare spending are also driving factors of income inequality in Turkey. The proven positive impact of investment in education and health care on income equality could aid policymakers who aim to achieve fairer income equality and economic growth, in investment decisions.