FEAS RESEARCH E-BULLETIN FEAS E-BULLETIN DECEMBER 2016 | Page 16

Author: Yakut, Aykut Mert
Title: Internal Migration, Redistributive Policies and Income Distribution in Turkey: An
Intertemporal CGE Analysis
Supervisor: Prof. Dr. Ebru Voyvoda - Prof. Dr. Erol Taymaz
Department: Economics
Date: September 2016
Abstract: 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.

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