Influence on the distribution income of social transfer expenditures: 1988-2018 case of Turkey

How income will emerge and how it will be distributed has always been one of the most important debates in economics. Income distribution is a concept that is closely related to the concepts of social justice and equality. A fair distribution of income has many benefits in terms of its economic, social and political dimensions. The state tries to make it more equitable by intervening in the distribution of income in the market with various tools. Fiscal policy is very effective in this regard, and public spending is often used as a fiscal policy tool for income redistribution. Especially today, in parallel with the developments in the world economy, the increase in income and wealth injustice gradually increases the poverty in the world. This situation not only causes income and wealth to accumulate in the capital class, but also increases the impoverishment of the labor class in the economy. In order to eliminate the injustices in the distribution of income and wealth, which are seen as an important problem for modern states, countries aim to eliminate injustice with the help of transfer expenditures within the framework of social welfare state understanding. According to the empirical literature, public expenditures is a very effective tool in improving income distribution, although it's effect varies by type. In this sense, transfer expenditures are accepted as the most effective public expenditure used by states to improve justice in income distribution. Therefore,as per the study of the transfer expenses between 1988-2018 in order to determine the extent of correlation between the effect on the distributionof income transfer expenditures for Turkey and transfer expenses with income distribution and Gini coefficient data was analyzed using EVIEWS 10.0 statistical analysis program. According to the findings obtained as a result of the analysis, it was determined that transfer expenditures were the cause of income distribution but there was a statistically significant inverse relationship between transfer expenditures and income distribution. In short, a 1-unit increase in transfer expenditures decreases the gini coefficient by 0.05 units, leading to an increase in the justice in income distribution.