Abstract:

The aim of the study in Turkey is to contribute to literature by analyzing the causal relationship between social security spending and income distribution injustice. According to this purpose, the analysis of equalization, causality analysis with the vector error correction model, with the use of annual data for the years 1985-2016 was carried out. The analysis resulted in the GINI ratio determined the causal relationship to the size of public spending. The result is that as the injustice in the income distribution decreases, the public spending will also decrease. Another outcome from the analysis is that there is a one-way cause from social security expenditure/GSMH variable to public expenditure variable. This result is also in accordance with the theoretical expectations and will increase public spending in the future increase in social security spending.

Abstract:

The aim of this study is to analysis the causality relationship between the income distribution and the social security spending in Turkey and also to contribute to the literature. For this purpose, cointegration analysis and causality analysis via vector error correction model were performed using annual data over the period 1985-2016. As a result of the analysis, causality relation was determined in one direction from GINI coefficient to public expenditures. According to this result, as the unfairness of income distribution decreases, public expenditures will decrease. Another result from the analysis is one-way causality from social security expenditures / GNP to public expenditures. This result is in line with the theoretical expectations and the increase in social security expenditures will increase public expenditures

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