Panel data analysis of income inequality in developed and developing countries

Income distribution and income inequality subjects have especially recently been among the most debated topics. In this thesis, the theories of income distribution are primarily introduced and these theories are attempted to be delineated on the context of schools of economics. Examining the income inequality trends of countries, the issue of convergence in income inequality between developed and developing countries comes to the fore. In empirical analysis, the convergence in income inequality is focused on and the hypothesis is tested by the latest econometric methods. Directed by the theories of economics, the section of empirical analysis supports the hypothesis of this thesis. With the results, the convergence in income inequality between developing and developed countries is confirmed. Along with the empirical results on the examined period, the peculiar results to the countries themselves are included, as well. KEYWORDS: Income Distribution, Income Inequality, Convergence Hypothesis.