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This paper investigates the nexus of military expenditure, income inequality, and profit rate, applying the non-parametric technique of Partial Least Squares Path Modeling (PLS-PM) to 21 countries for 1988–2008. The findings suggest that military expenditure has a positive effect on income inequality while income inequality has a positive impact on profit rate. In contrast, military expenditure has a (relatively small) positive effect on profit rate. However, these results change significantly once unobserved heterogeneity is considered. Accordingly, based on four segments, although the positive effect of income inequality on profit rate remains the same for each segment, for some segments, the effect of military expenditure on income inequality and profit rate become negative. [ABSTRACT FROM AUTHOR]

Using two novel datasets of the size of the informal economy and income inequality, this study examines the effect of informality on income and wage inequality with special attention to the rates of profit. Covering 86 countries for 1960–2016, the study shows that informality and the rates of profit are positively associated with income inequality; however, the positive impact of profit rate on income inequality decreases as the size of informal economy increases. [ABSTRACT FROM AUTHOR]

An extensive literature on the effect of military expenditures on economic growth yields conflicting results. However, a crucial issue that has not been investigated in this context is the possible effect of inequality. The impact of military expenditures on economic growth in Turkey has also received substantial attention. Yet, the majority of these studies are not constructed based on a structural model, but rather examine the causality between the variables in question. Considering these two shortcomings in the literature and the lack of consistent results, this study attempts to provide further evidence for the relationship between military expenditures and economic growth for the case of Turkey by considering income inequality within an augmented Solow growth model. Our findings for the 1963–2008 period show that while income inequality has a positive impact on economic growth, military expenditures have no significant effect. [ABSTRACT FROM PUBLISHER]

Separatist terrorism has been a severe problem for Turkey since the mid-1980s. The conventional wisdom contends that economic deprivation in southeastern Turkey is the fundamental reason for the long-running battle against the Kurdish rebels. Considering that there is limited empirical literature on the roots of terrorism in Turkey, yielding conflicting results about the claim that the main cause of terrorism is deprived economic conditions, this study aims to answer whether there is a causal relationship between income inequality and separatist terrorism in Turkey. To this end, the Global Terrorism Data Base for the period of 1973–2006, two Theil indices of pay inequality as proxy for income inequality, and the vector autoregression and Autoregressive Moving Average (ARMA) methods are utilized. The results support the early findings that income inequality, a particular focus in this paper and an essential indicator of economic deprivation, is not a main cause of escalation of separatist terrorism in Turkey. [ABSTRACT FROM PUBLISHER]

This paper analyzes wage inequality in the Turkish manufacturing sector annually from 1980 to 2001, and also provides some evidence for inequality in the post-2001 period. Using the between-groups component of Theil's T statistic, the paper provides more information on wage inequality. It decomposes the evolution of inequality by statistical regions - The Nomenclature of Territorial Units for Statistics - (i.e. NUTS-1 and NUTS-2). The decompositions show that inequality has increased since the late 1980s in the private sector both between regions of NUTS-1 and NUTS-2. [ABSTRACT FROM AUTHOR]

Using two novel datasets of the size of the informal economy and income inequality, this study provides evidence on the nexus of informality and inequality with particular attention to the feminization of labor, a phenomenon closely related to labor market informalization. Using annual cross-country panel data from 125 countries for 1963–2018, the study reveals a relationship between the size of the informal sector and income inequality, which is more likely to be negative in richer countries and positive in poor ones. It also shows that, while higher women's labor force participation is associated with lower income inequality, this negative correlation is cancelled by the presence of an informal sector. [ABSTRACT FROM AUTHOR]