TÜİK Report Exposes Income Distribution Inequality in Turkey

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TÜİK Report Exposes Income Distribution Inequality in Turkey

The Turkish Statistical Institute (TÜİK) has released the 2024 Income Distribution Statistics report. According to the report, the highest income group's share of total income is 48.1%, while the Gini coefficient, an important indicator of income inequality, is set at 0.413.

The ten most striking pieces of information from the report are as follows:

  • The highest income group's share of total income is 48.1%.
  • The Gini coefficient is 0.413, indicating a slight reduction in income inequality.
  • The annual average household disposable income in Turkey increased by 106.9% to 374,899 TL.
  • Salary and wage income accounts for the largest share of total income at 48.8%.
  • Higher education graduates have the highest annual average main job income of 309,721 TL.
  • The construction sector recorded a 115.4% increase in annual average main job income.
  • Istanbul has the highest annual average equivalent household disposable per capita income at 257,891 TL.
  • In the TRB2 (Van, Muş, Bitlis, Hakkari) region, the annual average equivalent household disposable per capita income is only 91,818 TL.
  • In 2024, 40.8% of the unemployed significantly changed their situation by starting to work.
  • Istanbul was identified as the region with the highest P80/P20 ratio in terms of income inequality.

A decrease in the share of the highest income group was observed According to the Income and Living Conditions Survey, the income distribution shows that the top 20% income group's share of total income has decreased to 48.1%. This marks a decrease of 0.6 percentage points compared to the previous year, while the share of the lowest income 20% group increased by 0.2 percentage points to 6.3%. The Gini coefficient decreased by 0.007 points to 0.413, indicating some improvement in income distribution.

Noticeable increase in annual incomes In Turkey, the annual average household disposable income increased by 106.9% to reach 374,899 TL. Similarly, the annual average equivalent household disposable per capita income rose by 108.3%, from 90,116 TL to 187,728 TL. Households consisting of multiple individuals without a core family had the highest income at 231,206 TL, while single-person households had an income of 223,859 TL.

Dominance of salary and wage income in income source distribution Salaries and wages contributed the largest share of total income at 48.8%. Entrepreneurial income ranked second with 20.8%, followed by social transfer income at 17.8%. Agricultural income accounted for 17.5% of entrepreneurial income, while pensions and survivor benefits constituted 87.6% of social transfer income.

Income distribution by education level Higher education graduates had the highest annual average main job income of 309,721 TL, while high school graduates earned 240,470 TL. The income of those without a diploma was calculated to be 106,478 TL. The highest increase in annual average main job income by education level was observed among high school graduates, with a rise of 110.2%.

Sector-based income growth When analyzed sector-wise, the highest annual average job income of 242,299 TL was obtained in the services sector, while the lowest income was 153,773 TL in the agricultural sector. The construction sector experienced a 115.4% increase in annual average main job income, while industrial sector incomes recorded a 102.0% increase.

Regional differences in income distribution Across Turkey, the annual average equivalent household disposable per capita income is 187,728 TL, with the highest income recorded in Istanbul at 257,891 TL, and the lowest income seen in the TRB2 (Van, Muş, Bitlis, Hakkari) region at 91,818 TL. The region with the highest level of income inequality was Istanbul, as indicated by the P80/P20 ratio.

Changes in the labor market In 2023, 40.8% of unemployed individuals found employment in 2024, while 90.6% of those employed in 2023 continued in the workforce. Additionally, 10% of individuals not participating in the labor force joined the workforce in 2024. These results indicate significant mobility in the job market.