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Household Asset Inequality in Turkey: How Informative is the Survey of Income and Living Conditions?

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  • Cem Baslevent

    (Istanbul Bilgi University)

Abstract

Using micro data from the Survey of Income and Living Conditions conducted by TurkStat, we apply the capitalization method in an attempt to determine the extent of wealth inequality in Turkey. This well-established method involves the estimation of household wealth based on the amounts of income resulting from the ownership of various types of assets. In addition to the calculation of wealth inequality, capitalized incomes are entered into a decomposition analysis to find out which factors contribute to inequality more than the others. Due to data limitations, we are restricted to an analysis that makes use of financial and rental income figures and imputed rents, while wealth in the form of land, gold, or stock ownership is mainly unaccounted for. The Gini coefficient figure of 0.54 implies that wealth inequality measured at the household level for Turkey is not extremely high. However, additional computations suggest that inequality is quite higher at the individual level.

Suggested Citation

  • Cem Baslevent, 2018. "Household Asset Inequality in Turkey: How Informative is the Survey of Income and Living Conditions?," Working Papers 1181, Economic Research Forum, revised 12 Apr 2018.
    • Handle: RePEc:erg:wpaper:1181
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    References listed on IDEAS

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    Cited by:

    1. Emine TAHSİN, 2019. "An Investigation of the Palma Ratio for Turkey Both on National and Regional Level," Sosyoekonomi Journal, Sosyoekonomi Society, issue 27(41).
    2. Tahsin, Emine, 2019. "Concentration of income inequality on the basis of Palma ratio and income deciles of Turkey on national and regional level," MPRA Paper 92490, University Library of Munich, Germany.

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