ABSTRACT

This article addressed the relative impact of socio economic and demographic determinants of income distribution in Turkey. It appears that those who make low income happen to be in the workforce, which does not require advanced education and that they work in low skilled occupations. According to the active income distribution in Turkey, 45.7% of people come from the lower income group, 39.1% of them come from the middle income group, and 15.3% of them come from the upper income group. Results show a social mobility between the years of 2003 and 2006, 3-4% of people from the lower and the middle income groups moved to either middle or upper income group. However, results do not indicate that there is a solid middle income group in Turkey yet. In summary, it is necessary that 39% of people who make up the middle income group should grow to be as large as %55-60 and those 45% of people who make up the lower income group must shrink to be as small as 25-30%.