The Effect of Social Protection Expenditures on Income Inequality: The Case of Turkiye

Abstract

Income inequality causes negativities in many areas, especially in the economy. Governments intervene in income distribution with the policies they implement. The effect of public social protection expenditures on income inequality is the subject of the study. Measuring the long-term impact of social protection expenditures on income inequality, together with its sub-components, constitutes the unique value of the study. The effect of social protection expenditures on income inequality with its subcomponents in the 1987-2018 period in Turkiye was analysed using the ARDL model. The findings reveal that social protection expenditures, except for health expenditures, reduce income inequality in Turkiye.