...Income inequality in Turkey and its causes and effects on the Turkish population Maastricht University | | | | School of Business & Economics | | | | Place & date: | Maastricht,08 December 2014 | Name, initials: | Canli, T | ID number: | 6091093 | Study: | International Business | Course code: | ebc1009 | Group number: | 1 | Tutor name: | Pierfrancesco, Guarino | Writing tutor name: | Campbell, Gabriel | Writing assignment: | Main Paper (Task 10) | | | t.canli@maastrichtuniversity.nl Table of Contents 1. Introduction 2 2. Income Inequality and its components 2 3. Gini coefficient and inequality 3 4. Turkey´s economic structure 3 5. Wage distribution in Turkey 4 6. Main causes of inequality 5 6.1 Return on capital and increase of economic input 5 6.2 Relationships between people and social mobility 5 7. Effects on Turkish population 6 7.1 Education, child labor and social mobility 6 8. Possible solutions 7 9. Conclusion 8 10. Works Cited 9 11. Figures 10 12. Tables 10 1. Introduction In the past decades the topic “Economic Inequality” has risen in popularity. The reason for this trend is mostly because economic inequality has risen drastically around the world. There are many forms of economic inequality, e.g. gender inequality, regional disparities, and wage inequality, only to name a few. Thus many politicians are discussing about economic inequality, particularly in Turkey. The largest driving...
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...STATE AND DISCUSS FIVE FACTORS OF INEQUALITY IN OUR SOCIETY In this course we will investigate what causes gender inequality. This question is of great importance and it is a very general question that immediately implies a variety of more specific questions. Why has gender inequality seemingly existed in all known societies? Why did gender inequality arise originally? Why did gender inequality persist even as technological and cultural evolution overwhelmingly transformed social, economic and political organization? What is it that people do that sustains gender inequality across generations? The closer and more critically we examine the issues, the more questions about causation we confront. In general, this course will concentrate on explaining inequality between women and men: how does it arise why does it take different forms, why does it vary in degrees across societies; what are the components that add up to gender inequality how do various institutions and practices contribute to it and how does it changed the course will emphasize the history of gender inequality in the United States. While we focus on gender inequality, we will also seek to understand social causation more generally, we will explore the diverse ways social causation works and how we can identify the causes behind important social phenomena. Introduction: What do we mean by inequality? How can we conceive of and talk about gender inequality in ways that are general enough to apply across the...
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...Anthony Giovenco Political Science Inequality Paper 12-18-14 The Effects of Wealth Inequality in the United States Wealth inequality in the United States has grown tremendously since 1970. The United States continuously reveals higher rates of inequality as a result of perpetual support for free market capitalism. The high rates of wealth inequality cause the growing financial crisis to persist, lower socio-economic mobility, increase national poverty, and have adverse effects on health and well being. There is no doubt that wealth inequality in America has been escalating quickly; the portion of total income earned by the top one percent has doubled since the beginning of the 1970’s. The wealthy are the main beneficiaries regarding income inequality. In the latest consensus of wealth distribution, the top one percent of Americans owned thirty five percent of the nations private wealth, and the top ten percent took home about fifty percent of all income in 2012. This figure is greater than the bottom 90 percent combined. The question commonly asked concerning this matter: How and why is this becoming so quickly unequal is to be examined. First, we must explain what is meant by the term “wealth.” Wealth is the collection of the assets people own. This includes homes, stocks, savings for pension, and bank accounts, minus all existing debts. The main issue regarding wealth inequality is income inequality. Income equality has grown increasingly in the past 30 years....
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...Should Income Inequality be Considered as a Serious Problem that Affects the Health of Most Individuals? Peng Peng AEIS111 Instructor: Roger Frost August 5,2015 With the rapid development of society, people did not have to worry about rising of income and income’s effects. Poor communities tend to suffer different diseases compared to rich people. The rich people will be associated with obesity while the poor are associated with wide range of diseases such as malnutrition, cholera, waterborne diseases and others (Rowlingson, 2011). In the recent years, all this seems different, and the apprehension has majorly shifted. Considering all this truly income inequality does affect the health of most individuals. Income inequality affects life expectancy, disease prevalence and social problems. On contrary, it is argued out that income inequality the main causative agent for health problems (Richard, 2015). This paper is an argumentative essay on how income inequality affects individual health and also identifies if it is the main causative agent or health problems. Firstly, there have been various studies that determine if indeed inequality affects the health of individuals. Those studies such as Whitehall studies have been able to demonstrate a link that is clear between the economic background and the health of individuals.It found out that people living in areas that are poor will die seven years earlier than the people that are living in areas that are...
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...Income Inequality In Chapter 20 of microeconomics one of the main points to this chapter is to understand income inequality and what causes income inequality. The three points I think they are very important to understand income inequality is the definition, and two examples of what causes income inequality. Education and training and discrimination are two examples that can give a more visual perspective of what income inequality is. The definition to income inequality according to the McConnell “Income Inequality is the distribution of an economy’s total income among households or families” McConnell (411) The concept of inequality is distinct from that of poverty and fairness. Income inequalities are used by to measure the distribution of income, and economic inequality among the participants in a particular economy, such as that of a specific country or of the world in general. According to the webpage businessdictionary.com “While different theories may try to explain how income inequality comes about, income inequality simply provide a system of measurement used to determine the dispersion of incomes.” In the text book from economics the author said “There are several causes of income inequality in the United States. In general, the market system is permissive of a high degree of income inequality because it rewards individuals based on the contributions that they make, or the resources that they own, in producing society’s output” McConnell (414) One of the main factors...
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...1. a) Discuss the effects of income inequality on a nation’s economic conditions. Income inequality is the unequal distribution of income among individuals of an economy (Income Inequality, 2014). In other words, the difference between the wealthy individual’s income and middle-class to poverty-stricken individuals’ incomes continues to increase. Such disparity can have detrimental effects on the economy. Those individuals who have a low-income are less able to purchase goods. As income inequality between individuals increases, money moves from those who used it to purchase their basic needs to those who already had enough and more. This then causes a weakened aggregate demand for products because the middle-class and poor can no longer afford...
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...Income inequality Name Date Abstract In any given population, there is a difference between what people within the population earn. The uneven distribution of income in any given population is income inequality. In order for there to be income, there has to be several sources of income. These sources of income may be combinational or independent per person receiving the income. Income may result from wages, rent, bank account interests, salaries or even profits made in business transactions ( Stiglitz, 2012). In his hypothesis, Karl Marx foresaw income inequality in a capitalistic as a major problem that would lead to an economic evolution. The main reason he foresaw an evolution was due to the recurrent nature of income inequality. In an income inequality situation, the richer keep getting richer due to a better income, while the poor keep getting poorer. The gap between the top earners and the low-income earners keeps widening in an income inequality situation. In America, almost 95% of the national wealth is under 5% ownership; this situation leaves 95% of the population to scrounge for the limited 5% wealth (DeNavas et. Al, 2005). Introduction In order to understand the complexities of economic inequality, the best specimen to use for the study is a family. In the study, the family’s income is under analysis, and then the family members ranked from the lowest income earner to the highest income earner. After the ranking, the incomes aid in establishing a Lorenz...
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...Globalization and Income Inequality in U.S. Globalization is the process of international integration, which the nation-states culturally, political, and economically interact with each other, creating a global society. Developing countries are modernizing, economies are constantly shifting, and technologies are advancing; however, as fascinating as globalization can be, it has several side effects. One of the key problems that is caused by globalization is income inequality between and within nations. The rich are getting richer and the lower class people are struggling to survive in this world. One example is the United States. Since the 1970s, its income inequality has been worsening, causing several major problems. This paper looks at US income inequality demonstrating the existence of this problem, the importance of addressing it, and the connection between such disparity and globalization, particularly economic and technological globalization. According to the data retrieved from the U.S. Census Bureau (See Appendix 2), it can be proved that income inequality exists. The real family data show that before 1975, all classes shared the prosperity, growing at a similar rate. Starting from 1973, the 95th Percentile (the level separating the 5 percent of the richest from the rest) rose at the same pace and increased approximately 60 percent; however, the growth of both the median (the level separating the half of the richer families from the other half) and the 20th Percentile...
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...Income inequality is one of the big issues in 21st century. Unequal distribution of income in society is considered to be an obstacle to economic growth. The income allocation of a country’s population can be measured by a Gini coefficient. The value of Gini coefficient can be between 0 and 1 and used to define the income gap between the rich and the poor. The value 0 shows perfect equality and value 1 illustrates perfect inequality. The US can be an example of country with high income inequality. The US Gini coefficient has risen by 20% between 1979 and 2010 (Frizell, 2014). Factors like family structure (i.e. how many earners are there in family), technology (i.e. changes the way that we live), and immigration (i.e. changes the supply of...
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...that the top 1 percent of income recipients receive about 15 percent of worldwide income, and the top 5 percent receive 40 percent of all income. Meanwhile, the poorest 20 percent receive only 1 percent of the global income. This paper attempts to unlock the significant factors that affect income inequality. In 1963, Simon Kuznets derived the inverted U hypothesis from which he inferred that through the course of development, as per capita income increases, initially, income inequality will increase before it starts to improve. In this paper, I will be using data on 61 countries, an inverted u pattern is found. The labor surplus model supports that the share of labor in industry and high population growth rates explain the inverted U. Economic Disparity Economic growth refers to a rise in national per capita income and product. However, economic growth does not mean that there is improvement in mass living standards. It can be a result of increase of wealth for the rich while the poor have less or no improvement in their living standards (Gillis, 70). This uneven distribution of income is referred to as income inequality. There is much income inequality existing in individual countries as well as globally. Globally, it is reported that the top 1 percent of income recipients receive about 15 percent of worldwide income, and the top 5 percent receive...
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...Eco. 251 Whenever you are dealing with the economic (the study of how people select to use resources) you can also include the shift in demands for resources, productivity, and income inequality. I will attempt to give a good definition and elaborate on demand for resources, productivity, and income inequality. Shift in demand for resources is when there is a change in something that is needed. When there is a need for a product or service, it will create a shift in demand for that product or service which will be an upward slope. For an example if there is a need for a specific name brand computer that will produce a shift in demands for the completed computer and all the components that the computer consists of. Certain holidays causes a shift in demand for resources such Christmas and New Year’s, during these holidays the demands for employees goes up because there are more products to be ordered, unloaded off the truck, and stocked. Shift in demand for resources always have a trigger down effect, it always leads to something else, and so a shift in demand for resources is good for the economy. Productivity is the measurement of production based on the output of the product and the time it took to get the output quantities produce. Every production company I have ever worked at had a production rate for every production position in the plant. The employees were informed of the production hourly rate and they were expected to make the production hourly rate. The beginning...
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...state in which income is insufficient to provide basic needs. Lack of control over resources, lack of education and poor health. There is a multidimensional component which may cause one to lack the ability to care for the basic needs for themselves as well as their families. Poverty can cause alienation and be very distressing. On a very concerning level are the indirect effects of poverty on the development and ones continued wellbeing in regards to emotional, behavioral and psychiatric problems. Measurement of poverty is based on income and consumption levels. People are considered poor if their consumption or income levels fall below the poverty line. The poverty line is the minimum level necessary to meet basic needs (Townsend, 1979). B. Analyze the social problem. According to article (Poverty, social inequality and mental health, 2004, para2). Poverty and social inequality have direct and indirect effects on the social, mental, and physical wellbeing of an individual or group of people. Income inequality produces psychological and psychosocial stress. This stress will trickle down and may cause increased health problems and an influx in mortality rates over time in these lower socioeconomic classes. This is caused by a lack in community investment in the social and physical infrastructure (Wilkinson, 1996). The effects of income inequality also trickle down into society. This trickle effect may cause increased stress, frustration, and cause families to lose...
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...Supply and Demand Globally Shirley Leo Argosy University This discussion will include the definition and how it is used to determine the demand for labor. The factors used to determine the supply of labor market will be discussed. This will include the factors that have changed the supply of labor market over the last twenty years. Price and quantity of labor determination over a period of will be explained. Income inequalities will also be determined, if there are any. The way that income inequalities are measured, and how they have changed from 1980 to the present will be discussed. What role does the government play in the terms of inequality? There will also reasons for this and against this provided. Next, nations trading will be discussed. The concept of “Comparative Advantage” will be discussed. If a nation had an isolation policy would they be better off economically will also be answered. Then the trade balance of the United States will be discussed. The problems with having a negative trade balance, and how it can be corrected will be included in this discussion. The last thing that will be discussed is the exchange rates. The significance of currency devaluations concerning the United States, as well as other countries will be the last thing discussed. Now, to discuss derived demand. Derived demand is the product that is produced...
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...security Name Institution Course Date Income Inequality: A Hindrance to Retirement Security Holland, K. (2015). On retirement security, US rank far behind others. CNBC. Retrieved 8 November 2015, from http://www.cnbc.com/2015/02/09/ In this article, the author suggests that America lags behind 18 other countries in retirement security because of the high-income inequality observed in many states in America. The author suggests that according to the recent study, the United States offers little support for retirement security services unlike other developed countries. The author quotes Sweden, Denmark, and Switzerland as among countries that have good retirement security systems. Many characteristics define these economies. First, most of the nations that score higher than the United States in retirement security have high tax burdens. However, these countries have a narrow income inequality. In addition, most countries are also improving on the gap between the poor and the rich. The universal healthcare schemes provided by these countries have also contributed to the good ratings of the most countries that have better retirement schemes than the United States (Holland, 2015). The author has focused on highlighting the importance of retirement security as a key pillar in economic developments. The author clearly states that the United States social security problem lies with the expanding income inequality. The author states that in order to have a good retirement...
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...it was difficult to make a clear distinction between these different classes of people in the society. The article, “Income Inequality: Too big to Ignore” by Robert H. Frank write about how the country continuously uneven income levels have affected Americans. According to Frank “three decades after world war 2, income in the United State rose rapidly at about the same rate for people at all income levels” (1). The point Frank was trying to get at is that, the gap between the higher and lower classes were more even before compare to now. “Income growth is concentrated at the top with about 8.9% in 1976 to 23.5% by 2007 during same period” (Frank 1). The essence of Frank’s argument is that the revenue is going to those who already have more. This is true, because it increase inequality....
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