Estimating middle income group income inequality: The case study of Afyonkarahisar

In economics, income distribution is how a nation's total GDP is distributed amongst its population and production factors. In income distribution studies, total population is divided into five equal groups. However, it is known that the poorest 20% and the richest 20% are fewer in total population. It is known that the share of middle group in total population is relatively higher in total population. The calculation of income distribution inequality within the middle income group is the main objective of this thesis. If income inequality within the middle income group differs significantly from income inequality of the whole country, it is important to examine it. This study uses two data sets for calculating inequality for middle income group. The findings of Afyonkarahisar questionnaire show that Gini coefficient is 0,27 for middle income group, excluding most poorest and richest groups. Gini coefficient for the same group is found 0,17 by using Turkish Statistics Office data. The findings indicate that income inequality in middle income group is significantly less than inequality in total income distribution.