INCOME INEQUALITY IN TURKEY: STRUCTURAL DYNAMICS, INSTITUTIONAL CONSTRAINTS, AND POLICY IMPLICATIONS

Abstract

This study examines the structural dynamics of income inequality in Turkey within a multidimensional and institutional framework. While the reform process of the early 2000s led to a relative improvement in income distribution, this trend has reversed since the mid-2010s, giving way to a renewed pattern of deterioration. The study argues that rising inflation, exchange rate shocks, declining real wages, informality in labor markets, and regional disparities, combined with limited redistributive capacity of social policies, have reinforced income inequality in Turkey. Methodologically, the paper employs a descriptive and comparative approach based on secondary data obtained from internationally recognized sources such as the OECD, World Bank, IMF, and national statistics. Standard indicators, including the Gini coefficient and income distribution measures, are used to analyze both cross-country differences and temporal changes. The findings suggest that income inequality in Turkey reflects a structural model shaped by the interaction between market-generated disparities and insufficient redistributive mechanisms. Moreover, the results highlight that inequality is not merely an economic issue but also a critical factor affecting social cohesion, institutional trust, and long-term development prospects. The study contributes to the literature by integrating economic, institutional, and social dimensions of inequality into a unified analytical framework. In this context, it proposes a set of policy recommendations focusing on progressive taxation, strengthened social protection systems, labor market reforms, regional development strategies, and human capital investments.