Individual income distribution in Afyonkarahisar (2008)

Income inequality is one of the reasons of market failure. Government tries to reduce income inequality by using several instruments. Government is supposed to measure income inequality and develop some policies based on the measurement. This study measures Afyonkarahisar?s income inequality for the year of 2008. The data are gathered from 2464 households. Lorenz curve and Gini coefficient are estimated. Gini coefficient is 0,33 which is below Turkey?s average value (0,37). This finding indicates that Afyonkarahisar has a better income distribution. It is also found that education is the most important determinant of income inequality.Key Words: Income, Income Distribution, Gini Coefficient, Lorenz Curve