# Income distribution is increasing

The deterioration of income distribution and distribution, which began after the 2018 currency crisis, increased with the corona virus pandemic and the 2021 currency crisis. In 2022, the trend of deteriorating income justice continued.

The shock in the distribution and distribution of income in Turkey was also reflected in the statistics of the Turkish Institute of Statistics (TUIK) and the UBS. The deterioration of income distribution in 2022 drew attention, when inflation increased drastically and wages did not increase at the same rate.

## DECREASE IN LABOR PARTICIPATION

According to TUIK’s independent 2022 Annual Gross Domestic Product (GDP) data, the decline in labor’s share of national income was also reflected in independent GDP data.

Labor’s share of growth continued to decline in 2022, as in the past five years.

Although the proportion of payments made to the labor force was 33.5 percent in 2018, this rate increased to 26.3 percent in 2022. Thus, the proportion of labor payments has decreased by 7.2 points since the regime presidential. Labor’s share of national income was 30 percent in 2021. Thus, this rate decreased 3.7 points in one year.

On the other hand, the ‘net operating surplus/mixed income’ ratio, which is the ratio of capital coming from national income, increased from 52.3 percent in 2021 to 53.7 percent in 2022. This ratio was 19 .5 percent in 2018, 47.4 percent in 2019, 49.3 percent in 2020, and 50.3 percent in 2021.

Although the labor share increased again in 2019 after the 2018 currency crisis, the distributional shock that began with the coronavirus pandemic in 2020 accelerated with the 2021 currency crisis. This trend continued in 2022.

## GREATER GREATER DISTRIBUTION

The deterioration of income equality was also reflected in the Income Distribution Statistics for 2022 published by TURKSTAT in May.

According to statistics, the proportion of the 20 percent group with the highest equivalent disposable family income in total income increased by 1.3 points compared to the previous year and reached 48 percent.

The share of the bottom 20 percent income group decreased by 0.1 percentage point to 6 percent.

In other words, while the share of the richest 20 percent of total income increased last year, the share of the poorest 20 percent of total income decreased.

The Gini coefficient, which is one of the measures of income inequality, was estimated at 0.415, an increase of 0.014 points from the previous year. The Gini coefficient expresses equality in the distribution of income when it approaches zero and deteriorates in the distribution of income when it approaches one.

## THE RICHEST RECEIVED 39.5 PERCENT OF THE 1 PERCENT OF WEALTH

The Credit Suisse Global Wealth Report, acquired by UBS, released in August, compiled startling data on income inequality in Turkey by 2022.

Consequently, the share of the richest 1 percent of the Turkish population of total wealth was 39.5 percent. This rate was only 30.2 percent for 90 percent of the population.

While the richest 5 percent of the population received a 59.2 percent share of total wealth, the share of the top 95 percent of the population was only 40.8 percent.

The richest 10 percent of the population owns 69.8 percent of total wealth. The total wealth share of the bottom 80 percent of the population is 18.7 percent.

The bottom 30 percent of the population, on the other hand, has a negative share of wealth. So when you add up the wealth of 30 percent of the adult population, the net debt is about $1 billion, not the wealth.

The number of people with assets greater than 100 thousand dollars is 1 million 256 thousand. 52 thousand 392 people have a wealth of 1 to 5 million dollars. The number of people with a wealth of 5 to 10 million dollars is 4 thousand 835. 2 thousand 920 people have a wealth of 10 to 50 million dollars, 320 people have a wealth of 50 to 100 million dollars and 31 people have a wealth of 5 to 10 million dollars. of more than 500 million dollars.

Source: Sozcu

Andrew Dwight is an author and economy journalist who writes for 24 News Globe. He has a deep understanding of financial markets and a passion for analyzing economic trends and news. With a talent for breaking down complex economic concepts into easily understandable terms, Andrew has become a respected voice in the field of economics journalism.