Özet:

Purpose: The aim of this essay is to research global trends in income and wealth inequality. Our study focusses on the subjects of income distribution and social policy. Final purpose of the essay is to find out the effects of taxes and government transfer payments on income inequality. Design/Methodology: As a research method statistical data is used in this study. Data in the tables have been obtained from some statistical reports published by TUIK (Turkish Statistical Institute), Eurostat (The Statistical Office Of The European Union) and some other international organizations. Findings: In Turkey, public social spendings have conciderably increased. However, Turkey continues to experience high levels of income inequality compared with economically developed countries. Limitations: This study analyzes the relationship between public social spending and income distribution in OECD, EU and Turkey. Originality/Value: Socio-economic inequality, which is the unequal distribution of national income and opportunities between social classes in a society, is one of the most important global issues. Social and political stability depend on a sustainable economic development. Therefore governments have started to intervene in economy by using fiscal and monetary policies. This new type of state is the social welfare state. Social welfare state is a state that provides its citizens with basic economic and social security. Public social expenditures have a positive effect on income distribution, but despite this global inequality is rising.

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