Abstract:

How the income will be distributed among the economic actors, whether this distribution is fair or not, is one of the issues that economics seeks for solutions from history to the present. Another issue in the focus of societies, both sociologically and economically, is gender equality, which is included in both the "Millennium Development Goals" and "Sustainable Development Goals" by the United Nations. The search for a common solution to combat income inequality and gender inequality globally constitutes the agenda of nations. In this direction, the study aims to empirically examine the effects of gender inequality on income distribution. Data belonging to 28 OECD countries in the period between 2006 and 2020 were tested with the help of panel data analysis. In order to decide on the Panel Methods to be applied first in the study, cross-sectional dependence and heterogeneity were tested. After the CADF and CIPS unit root tests, which are the second generation unit root tests, the Westerlund & Edgerton Panel Co-integration Test was applied to heterogeneousdata with cross-section dependence, and the coefficient estimates of the long-term cointegrated variables were determined with the FMOLS coefficient estimator both across the panel and on a country basis. The short-term analysis of the model was made with the VECM Error Correction Test, and as a result, according to the residuals obtained from the short-term and long-term analyzes, all explanatory variables considered throughout the panel in both periods contribute to a more equitable distribution of income. Finally, the causality relationships between the variables were analyzed with the Dumitrescu & Hurlin Test and it was concluded that there was a unilateral causality relationship from gender inequality to income distribution in the long run between per capita income, education expenditures and social benefits and income distribution. 

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