The relationsip between income distribution and savings: Determinants of household savings in Turkey

Household has an important place in the division of income. Therefore, it plays a decisive role in personal consumption, investment, and savings. The type of income received and the way it has been used by household is extremely important for the formation of national income. This thesis aims to identify the determinants of household savings. In this study, "Household Budget Survey" conducted by Turkish Statistical Institute for the years 2002-2013 is used. Survey data has been analyzed by multiple linear regression and logistic regression models. The results of the study show that wage and premium income, interest and rental income, pensions and other wage incomes affect the amount of household savings positively. In addition, variables such as house ownership, having an extra house, having annual disposable income of over 10.000 ₺, education level also have a positive effect on household savings. On the other hand, the number of family members, car ownership, temporary or seasonal employment, and living in rural areas affect household savings in a negative way. Key Words: Household, Income, Savings, Income Distribution, Multiple Linear Regression, Logistic Regression.