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Abstract This paper examines trends in wage, income, and consumption inequality in Turkey from 2002 to 2023, a period marked by unorthodox economic policymaking before and after the COVID-19 pandemic. Using microdata from the Turkish Statistical Institute’s Household Budget Survey and the Survey of Income and Living Conditions, we document several salient distributional patterns. Wage inequality declined steadily over two decades, including during the recent episode of policy experimentation – coinciding with sustained minimum wage hikes and a rising share of university-educated workers. Income inequality also fell, though less markedly, before reversing in recent years due to widening disparities in capital and entrepreneurial income. In addition, consumption inequality rose dramatically during the unorthodox policy period, exceeding income inequality growth and driven primarily by a surge in durable goods consumption among top-decile households. These findings reveal the complex and multi-dimensional distributional consequences of unconventional economic policy in emerging markets and highlight the importance of examining inequality across multiple dimensions when evaluating policy effectiveness.
Kaçmaz et al. (Mon,) studied this question.