Income inequality increased 0.007 points in Turkey
Staff Writer |
The equivalised household disposable income is calculated from the disposable income of each household divided by equivalised household size which takes into account adult-child compositon of the households by means of household equivalence scale.
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The share of the top quintile by the equivalised household disposable income was 47.2% recording an increase of 0.7 points whilst the share of the bottom quintile was 6.2% with an increase of 0.1 points in comparison with the previous year.
The income quintile share ratio calculated as the ratio of total income received by the richest 20% of the population to that received by the poorest 20% of the population increased from 7.6 to 7.7.
The income inequality increased 0.007 points compared to previous year.
Gini coefficient one of the measures of inequality varies between 0, which reflects complete equality and 1, which indicates complete inequality.
According to 2016 results, Gini coefficient was estimated at 0.404 with an increase of 0.007 points compared with the previous year.
In Turkey, the mean annual equivalised household disposable income increased by 15.9% compared to the previous year from 16 thousand 515 TL to 196 thousand 139 TL.
The rate of wage and salaries remained unchanged compared with the previous year and got the highest rate with 49.7% of total equivalised household disposable income.
This was followed by the entrepreneurial incomes with an increase of 1 point compared to 2015 (19.8%) and social transfers with a decrease of 0.4 points (19.6%).
Pensions and survivor’ benefits composed 91.8% of social transfers whereas non-agricultural income composed 74.7% of entrepreneurial incomes.
The at-risk-of-poverty-rate according to poverty threshold set at 50% of median equivalised household disposable income was 14.3% with a decrease of 0.4 points in relation to 2016.
As for the at-risk-of-poverty-rate according to poverty threshold set at 60% of median income, it was 21.2% with a decrease of 0.7 points in comparison with the previous year. ■