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Internal migration, redistributive policies and income distribution in Turkey: an intertemporal CGE analysis

Yakut, Aykut Mert
This thesis focuses on the effects of the public policies on the size distribution of income in Turkey. To this end, an intertemporal computable general equilibrium model with heterogeneous agents in a small open economy framework is constructed. This study serves several extensions to the literature with its algebraic structure and calibration process in which various micro-level data sets have been utilized extensively. The results reveal that, in line with the previous findings of the literature, increasing budget allocations to unilateral social transfer programs has no significant effects on the size distribution of income and has adverse effects on the labor market decisions of relatively poor laborers. On the contrary, subsidizing the cost of labor has positive impacts on labor supplies and the size distribution of income improves in favor of relatively poor households.