EDUCATION AND INCOME INEQUALITY IN TURKEY: NEW EVIDENCE FROM PANEL DATA ANALYSIS

Özet

Income gini coefficient shows that income inequality has a downward trend in Turkey between 2008and 2013. As it is expected, the east part of Turkey has higher income distortions, while Marmaraand Black Sea regions have relatively lower income Gini coefficients. In this paper, we also computededucation Gini at the provincial level from 2008 to 2013. Similar to the income Gini index, theeducation Gini coefficient is also higher in Eastern and South-eastern regions. Besides, the data showthat the provinces that have more equal education distribution are generally located in the Marmaraand Central Anatolia regions. In this study, we examine the impact of education inequality on incomeinequality by analysing provincial level panel data between 2008 and 2013. We have employed bothstatic and dynamic panel data models and also controlled for the endogeneity problem. Econometricanalysis provides evidence for a negative association between education Gini coefficient and incomeinequality.