Tahsin, Emine (2019): Concentration of income inequality on the basis of Palma ratio and income deciles of Turkey on national and regional level. Forthcoming in:
PDF
MPRA_paper_92490.pdf Download (1MB) |
Abstract
This paper aims to focus on income inequality concentration based on Palma ratio as an income inequality metrics and in this regard change in income deciles of Turkey both on national ( for period 2002-2017) and NUTS-1 level for period of 2006-2017 would be investigated. In this context cons and pros of metrics would be considered hence this study would not suggest that Palma ratio is the best inequality metrics that explains inequalities. However analytical framework of the Palma ratio would be taken into consideration in order to focus on concentration of income inequality. So that possibility of exploring dimensions of hidden inequality that could not be asserted by Gini coefficient, in case of Turkey would be investigated. Given that, primarily the Gini coefficient series based on Turkstat and Povcal data would be compared for period 2002-2017 for Turkey. Following this path, the Palma ratio; the ratio of the share of top 10 percent income to the bottom 40 percent income (D10/D1-D4) would be investigated both on national and regional level. First of all based on studies that refers to Palma ratio descriptive and explanatory statistics would be utilized. For analyzing robustness of Palma ratio and investigating importance of change in relevant income deciles, mean and percentage shares’ would be considered. Within this context rather than analyzing absolute improvement, proportional change in income deciles, Gini coefficient and Palma ratio with respect to total mean income and GDP per capita income(Turkstat 2004-2016)would be estimated. While analyzing descriptive statistics for both income deciles and mean income data, existence of “outliers” would be investigated. For this purpose in order to examine regional disparities,on the basis of income deciles’ percentage share of relevant deciles would be estimated by Mahalanobis distance calculation. Furthermore in order to analyze concentration of income inequality, decomposition of Gini coefficient values based on sub-population grouping (regions) would be evaluated. In doing so between(Bahattacharya and Mahalanobis,1976, Giorgi,2011) and within group decomposition (Bellu and Liberati, 2006) analysis would be considered for mean incomes and Gini coefficient values’. Based on these results, it would be suggested that investigation based on Palma ratio and income deciles would permit more detailed analysis of concentration of income inequality. Opposite tails ( the richest D10 and the poorest D1-D4) of Turkey’s provide us to explain asymmetries in income distribution dynamics. Robustness of Palma ratio would be evaluated while it would be underlined that apart from overlapping trend between Palma ratio and Gini coefficient, D10 income deciles and Gini coefficient has strong correlation that determines concentration of income inequality.
Item Type: | MPRA Paper |
---|---|
Original Title: | Concentration of income inequality on the basis of Palma ratio and income deciles of Turkey on national and regional level |
English Title: | Concentration of income inequality on the basis of Palma ratio and income deciles of Turkey on national and regional level |
Language: | English |
Keywords: | Income inequality, Palma ratio, Regional income distribution in case of Turkey, Mahallonobis distance calculation, Gini decomposition, Income inequality concentration |
Subjects: | C - Mathematical and Quantitative Methods > C1 - Econometric and Statistical Methods and Methodology: General E - Macroeconomics and Monetary Economics > E2 - Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy > E25 - Aggregate Factor Income Distribution O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development O - Economic Development, Innovation, Technological Change, and Growth > O5 - Economywide Country Studies R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R1 - General Regional Economics > R10 - General |
Item ID: | 92490 |
Depositing User: | emine tahsin |
Date Deposited: | 04 Mar 2019 13:02 |
Last Modified: | 26 Sep 2019 16:55 |
References: | Atkinson, T. (1970), “On the Measurement of Inequality”, Journal of Economic Theory, 2, 244–63. Atkinson, A. B. (2003), “Income inequality in OECD countries: Data and explanations”, CESifo Economic Studies, 49(4), 479-513. Atkinson, A., Piketty, T. and Saez, E. (2011), “Top Incomes in the Long Run of History”, Journal of Economic Literature, 49 (1), 3–71. Baslevent, C. (2014), “Social Transfers and Income Inequality in Turkey: How Informative Is the Survey of Income and Living Conditions”, Ekonomi-tek-International Economics Journal, 3(3), 23-42. Baslevent, C. (2018), “Household Asset Inequality in Turkey: How Informative is the Survey of Income and Living Conditions?” Economic Research Forum Working Papers, No. 1181. Bayar, A. A. (2016), “The decomposition of regional income inequalities of Turkey” Unpublished manuscript.https://www.aeaweb.org/conference/2016/retrieve.php?pdfid=1382, 10.02.2018. BSB (Bağımsız Sosyal Bilimciler) (2015), AKP’li Yıllarda Emeğin Durumu. Yordam Kitap, İstanbul. Bourguignon, Francois, and Christian Morrisson (2002), “The size distribution of income among world citizens, 1820-1990”, American Economic Review, September, 727-744. Cingano, F. (2014), “Trends in Income Inequality and its Impact on Economic Growth”, OECD Social, Employment and Migration Working Papers, No. 163, OECD Publishing. htt://dx.doi.org/10.1787/5jxrjncwxv6j-en Cobham, A., and A. Sumner (2013a),”Putting the Gini back in the Bottle? The Palma as a PolicyRelevant Measure of Inequality”, Mimeograph. London: King’s College . Cobham, A. and A. Sumner (2013b),“Is It All About the Tails? The Palma Measure of Income Inequality’”,Centre for Global Development Working Paper , No : 343, London: Centre for Global Development Cobham, A. and A. Sumner (2013b),“Palma vs Gini: measuring post-2015 inequality” http://www.thebrokeronline.eu/Blogs/Inequality-debate/Palma-vs-Gini-measuring-post-2015-inequality,4.02.2019. Cobham, A., and Sumner, A. (2015), “Inequality and the Tails: The Palma Proposition and Ratio Revisited”, UN DESA. Cowell, F. A. (2000), “Measurement of inequality”, Handbook of income distribution, 1, 87-166. Dayioglu Meltem and Başlevent Cem (2006).” Imputed Rents and Regional Income Inequality in Turkey: A Subgroup Decomposition of the Atkinson Index”, Regional Studies, 40:8, 889-905, DOI: 10.1080/00343400600984395 Deininger, K., & Squire, L. (1996), “A new data set measuring income inequality”, The World Bank Economic Review, 10(3), 565-591. Doyle, M. and Stiglitz, J. (2014), “Eliminating Extreme Inequality: A Sustainable Development Goal, 2015–2030”, Ethics and International Affairs, 28 (10), 1–7. Engberg-Pedersen, L. (2013), “Development Goals Post 2015: Reduce Inequality”, Danish Institute for International Studies Policy Brief: DIIS. Bellu, G., & Liberati, P. (2006), “Decomposition of Income Inequality by Subgroups”, Policy Impacts on Inequality,htt://www.fao.org/docs/up/easypol/444/dcmpsng-inqulty_sbgrp_052en.pdf, 10.06.2018. Giorgi, G. M. (2011), “The Gini inequality index decomposition. An evolutionary study”, The measurement of individual well-being and group inequalities: Essays in memory of ZM Berrebi, 185-218. Published in Deutsh J. and Silber J.(Eds), “The measurement of individual well-being and group inequalities: Essays in memory of Z.M. Berrebi”, London: Routledge, 2011, Ch.9, 185-218 Filiztekin, A. Çelik, M. A. (2010), “Regional Income Inequality in Turkey”, Megaron, Vol 5(3), pages: 116-127 Hazledine, T. (2014), “Does the Centre Hold? Testing Palma’s Proposition (A Comment)”, Development and Change, 45 (6), 1409–15. Karaca, O. (2018), “Türkiye'de Bölgesel Yakınsamanın 50 Yılı: Yeni Veri Seti ve 1960-2010 Dönemi Analizi”, Sosyoekonomi, 26. Lenhardt A. and Shepherd A.(2013),” A new ‘median’ inequality indicator, designed to support poverty eradication, http://www.thebrokeronline.eu/Blogs/Inequality-debate/A-new-median-inequality-indicator-designed-to-support-poverty-eradication, 20.09.2017. Milanovic, Branko (2005),” Worlds Apart: Global and International Inequality, 1950-2000”, Princeton University Press, Princeton, NJ. Milanovic, B. (2015), “Why I am Still Not Excited by the Palma”,htt://glineq. blogspot.co.uk/2015/06/why-i-am-still-not-excitedby-palma.html, 20.09.2017. Milanovic, B. (2016), Global inequality: A new approach for the age of globalization. Harvard University Press. Murawski Sara (2013), Gini, Palma and the median inequality indicator, http://www.thebrokeronline.eu/Articles/Gini-Palma-and-the-median-inequality-indicator, 20.09.2017. Krozer. Alice, (2015), The Inequality We Want: How Much is too Much? (No. 015), World Institute for Development Economic Research (UNU-WIDER). Oz, S. (2017) , “Is There an Income Convergence across Provinces of Turkey? “Koç University-TUSIAD Economic Research Forum Working Papers, (No. 1711), Koc University-TUSIAD Economic Research Forum. Saiz, I., & Donald, K. (2017), “Tackling inequality through the Sustainable Development Goals: human rights in practice”, The International Journal of Human Rights, 21(8), 1029-1049. Şenesen, Ü. (1998), Betimleyici, sorgulayıcı istatistik. İstanbul Teknik Üniversitesi, İstanbul. Palma, J.G. (2006), “Globalizing Inequality: “Centrifugal” and “Centripetal” Forces at Work”, DESA Working Paper, 35, New York: United Nations. Palma, J.G. (2011), “Homogeneous Middles vs. Heterogeneous Tails, and the End of the “Inverted-U”: the Share of the Rich is what it’s all about”, Development and Change, 42(1). pp.87-153 Palma, J.G. (2013),” Has the Income Share of the Middle and Upper-Middle been Stable Over Time, or is its Current Homogeneity Across the World the Outcome of a Process of Convergence? The ‘Palma Ratio’ Revisited”, Cambridge Working Papers in Economics, 1437, Cambridge: University of Cambridge. Palma, J.G. (2014) ,”Has the Income Share of the Middle and Upper-Middle Been Stable Around the “50/50 Rule”, or has it Converged Towards That Level? The “Palma Ratio” Revisited”, Development and Change, 45 (6), pp.1416–48. Palma, J. G. (2018), “Does the broad spectrum of inequality across the world in the current era of neo-liberal globalization reflect a wide diversity of fundamentals, or just a multiplicity of political settlements and market failures?” http://policydialogue.org/files/publications/papers/Palma-Intl-Rules.pdf, 10.08.2018. Povcal data set(2018) htt://iresearch.worldbank.org/PovcalNet/povOnDemand.aspx, 20.01.2019. Prosperity and Shared Prosperity(2016), “Poverty and shared prosperity 2016: taking on inequality”,World Bank Publications,https://openknowledge.worldbank.org/bitstream/handle/10986/25078/9781464809583.pdf,20.07.2018. Selim, R., Günçavdı, Ö. and Bayar, A. A. (2014), “Household Income Inequality in Turkey: Functional Income Sources and Regional Ineqaulities,” TÜSİAD Report, No: TÜSİAD-T/2014-6/554. Sefil Tansever, S , Kent, O . (2018)”. Earnings Inequality In Turkey: A Regional Perspective”. Marmara İktisat Dergisi, 2 (1), 117-136. http://dergipark.gov.tr/mje/issue/36764/418748, 01.03.2019. Smeeding, T., & Latner, J. P. (2015), “ PovcalNet, WDI and ‘All the Ginis’: a critical review”, The Journal of Economic Inequality, 13(4), 603-628. Sutcliffe, Bob (2003), “A more or less unequal world? World income distribution in the 20th century”, Working Paper,54, Political Economy Research Institute, University of Massachusetts, Amherst, https://scholarworks.umass.edu/cgi/viewcontent.cgi?article=1041&context=peri_workingpapers, 13.06.2018. Tekgüç Hasan (2018), “Declining Poverty and Inequality in Turkey: The Effect of Social Assistance and Home Ownership”, South European Society and Politics, South European Society and Politics, pp. 1-24. TurkStat (2018),” Income and Living Conditions Statistics”, www.tuik.gov.tr, 30.01.2019. UNDESA (2013), “Inequality Matters: Report on the World Social Situation 2013”, New York: UNDESA. UNDESA (2015), “Inequality Measurement Development Issues No. 2”, htt://www.un.org/en/development/desa/policy/wess/wess_dev_issues/dsp_policy_02.pdf, 20.07.2018. XTLAS(2018), “Multidimensional tests (Mahalanobis, …), https://www.xlstat.com/en/solutions/features/multidimensional-tests, 10.01.2019. UNDP(2016), “Income and Social Inequalities in Turkey- 2016 htt://www.tr.undp.org/content/turkey/en/home/library/human_development/socialinequalities.html, 10.02.2018. Voitchovsky, S. (2005), “Does the profile of income inequality matter for economic growth?”, Journal of Economic growth, 10(3), 273-296. Voitchovsky, S. (2009), “Inequality and economic growth”, The Oxford Handbook of Economic Inequality, Oxford University Press, Oxford. WIR(World Inequality Report) (2018), World Inequality Report, https://wir2018.wid.world/, Accessed at 10.01.2019. |
URI: | https://mpra.ub.uni-muenchen.de/id/eprint/92490 |
Available Versions of this Item
- Concentration of income inequality on the basis of Palma ratio and income deciles of Turkey on national and regional level. (deposited 04 Mar 2019 13:02) [Currently Displayed]