The Relationship Between Income Inequality and Human Development: Evidence from Türkiye

Burhan Durgun; Özlem Durgun

Article Details

The Relationship Between Income Inequality and Human Development: Evidence from Türkiye

Authors:

Burhan Durgun | Özlem Durgun

Publisher:

Kastamonu University

Journal:

Kastamonu Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi Vol.25 Issue 1, pp.45-73

Document Type:

Article

Publication Date:

6/2023

Document Language:

Turkish

Document ID (Org No.):

2001294393

pISSN:

2147-6012

Keywords:

Abstract:

 The issue of inequality in income distribution attracts the attention of many researchers in social sciences, especially economists. The size, causes and consequences of income inequality, which has become a deeper problem with the technological revolution, have been the subject of many empirical studies. Studies in the literature generally associate income inequality with income level. Therefore, the human factor is mostly excluded from the analysis. In this study, the relationship between income inequality gini and the human development index calculated by UNDP, which includes not only the economic but also the human dimension of welfare with health and education indicators, has been examined in Turkey. In the time series analysis covering the period 1990-2019, ARDL bounds test and causality tests were used. There are two models in the analysis, general and disaggregated. In the first model, the relationship of income inequality with the human development index, and in the second model, the relationship of income inequality with health, education and income sub-indices in the human development index was investigated. The results of the analysis showed that there is a long-run relationship between the series in both models. It has been determined that the sign of the human development index and health index is negative and significant, the education index is positive and significant, and the income index is negative but insignificant. According to the results of the causality tests, in general, one-way causality from the human development index to income inequality has been determined. These results show that increases in the level of human development will make the income distribution more equitable in Turkey. For Turkey, which wants to reduce inequality in income distribution, this result gives an idea to increase investments in education and health. In addition, it is necessary to increase thce quality of education, reduce the deep inequalities in health and education, and ensure equality of opportunity in education.

 The issue of inequality in income distribution attracts the attention of many researchers in social sciences, especially economists. The size, causes and consequences of income inequality, which has become a deeper problem with the technological revolution, have been the subject of many empirical studies. Studies in the literature generally associate income inequality with income level. Therefore, the human factor is mostly excluded from the analysis. In this study, the relationship between income inequality gini and the human development index calculated by UNDP, which includes not only the economic but also the human dimension of welfare with health and education indicators, has been examined in Turkey. In the time series analysis covering the period 1990-2019, ARDL bounds test and causality tests were used. There are two models in the analysis, general and disaggregated. In the first model, the relationship of income inequality with the human development index, and in the second model, the relationship of income inequality with health, education and income sub-indices in the human development index was investigated. The results of the analysis showed that there is a long-run relationship between the series in both models. It has been determined that the sign of the human development index and health index is negative and significant, the education index is positive and significant, and the income index is negative but insignificant. According to the results of the causality tests, in general, one-way causality from the human development index to income inequality has been determined. These results show that increases in the level of human development will make the income distribution more equitable in Turkey. For Turkey, which wants to reduce inequality in income distribution, this result gives an idea to increase investments in education and health. In addition, it is necessary to increase thce quality of education, reduce the deep inequalities in health and education, and ensure equality of opportunity in education.

 The issue of inequality in income distribution attracts the attention of many researchers in social sciences, especially economists. The size, causes and consequences of income inequality, which has become a deeper problem with the technological revolution, have been the subject of many empirical studies. Studies in the literature generally associate income inequality with income level. Therefore, the human factor is mostly excluded from the analysis. In this study, the relationship between income inequality gini and the human development index calculated by UNDP, which includes not only the economic but also the human dimension of welfare with health and education indicators, has been examined in Turkey. In the time series analysis covering the period 1990-2019, ARDL bounds test and causality tests were used. There are two models in the analysis, general and disaggregated. In the first model, the relationship of income inequality with the human development index, and in the second model, the relationship of income inequality with health, education and income sub-indices in the human development index was investigated. The results of the analysis showed that there is a long-run relationship between the series in both models. It has been determined that the sign of the human development index and health index is negative and significant, the education index is positive and significant, and the income index is negative but insignificant. According to the results of the causality tests, in general, one-way causality from the human development index to income inequality has been determined. These results show that increases in the level of human development will make the income distribution more equitable in Turkey. For Turkey, which wants to reduce inequality in income distribution, this result gives an idea to increase investments in education and health. In addition, it is necessary to increase thce quality of education, reduce the deep inequalities in health and education, and ensure equality of opportunity in education.

 Gelir dağılımındaki eşitsizlik konusu iktisatçılar başta olmak üzere sosyal bilimlerdeki birçok araştırmacının ilgisini çekmektedir. Teknolojik devrimle daha derin bir sorun haline gelen gelir eşitsizliğinin boyutu, neden ve sonuçları birçok ampirik çalışmaya konu olmuştur. Literatürdeki çalışmalar gelir eşitsizliğini genellikle gelir düzeyi ile ilişkilendirmektedir. Bu yüzden de insan faktörü çoğunlukla analiz dışı tutulmaktadır. Bu çalışmada gelir dağılımı eşitsizliğinin UNDP tarafından hesaplanan ve refahın sadece ekonomik değil -sağlık ve eğitim göstergeleriyle- insani boyutunu da içine alan insani gelişme endeksi ile ilişkisi Türkiye özelinde incelenmiştir. 1990-2019 dönemini kapsayan zaman serisi analizinde ARDL sınır testi ve nedensellik testleri kullanılmıştır. Analizlerde genel ve ayrıştırılmış olmak üzere iki model kullanılmıştır. İlk modelde gelir eşitsizliğinin insani gelişme endeksiyle ilişkisi, ikinci modelde ise gelir eşitsizliğinin insani gelişme endeksinin sağlık, eğitim ve gelir alt endeksleriyle ilişkisi araştırılmıştır. Analiz sonuçları her iki modelde de seriler arasında uzun dönemli bir ilişkinin olduğunu göstermiştir. İnsani gelişme endeksi ve sağlık endeksinin işareti negatif ve anlamlı, eğitim endeksinin pozitif ve anlamlı, gelir endeksinin ise negatif fakat anlamsız olduğu tespit edilmiştir. Nedensellik testleri sonuçlarına göre ise genel olarak insani gelişme endeksinden gelir eşitsizliğine doğru tek yönlü nedensellik tespit edilmiştir. Bu sonuçlar Türkiye için insani gelişme seviyesindeki artışların gelir dağılımını daha adaletli hale getireceğini göstermektedir. Gelir dağılımında eşitsizliği azaltmak isteyen Türkiye için bu sonuç, eğitim ve sağlık yatırımlarını arttırma yönünde fikir vermektedir. Ayrıca eğitim kalitesinin yükseltilmesi, sağlık ve eğitimdeki derin eşitsizliklerin azaltılması ve eğitimde fırsat eşitliğinin sağlanması gerekmektedir.

Article Details

The Relationship Between Income Inequality and Human Development: Evidence from Türkiye

Authors:

Burhan Durgun | Özlem Durgun

Publisher:

Kastamonu University

Journal:

Kastamonu Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi Vol.25 Issue 1, pp.45-73

Document Type:

Article

Publication Date:

6/2023

Document Language:

Turkish

Document ID (Org No.):

2001294393

pISSN:

2147-6012

Gelir Dağılımı

Gelir Eşitsizliği

İnsani Gelişme Endeksi

ARDL Sınır Testi

Granger NedensellikGelir Dağılımı

Gelir Eşitsizliği

İnsani Gelişme Endeksi

ARDL Sınır Testi

Granger Nedensellik

Issues

Article Details

Authors: Burhan Durgun | Özlem Durgun

Publisher: Kastamonu University

Journal: Kastamonu Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi Vol.25 Issue 1, pp.45-73

Document Type: Article

Publication Date: 6/2023

Document Language: Turkish

Document ID (Org No.): 2001294393

pISSN: 2147-6012

Issues

Authors:

Burhan Durgun | Özlem Durgun

Publisher:

Kastamonu University

Journal:

Kastamonu Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi Vol.25 Issue 1, pp.45-73

Document Type:

Article

Publication Date:

6/2023

Document Language:

Turkish

Document ID (Org No.):

2001294393

pISSN:

2147-6012