Bu calismada transfer odemelerinin gelir dagilimina etkisi, 36 OECD ulkesinin 1996-2018 donemi verileri kullanilarak, panel veri analizi yontemiyle incelenmistir. Calismada bagimli degisken olarak;GINI katsayisi, bagimsiz degisken olarak hane halkina yonelik transfer odemelerinin milli gelire orani verileri kullanilmistir. Ayrica ekonomik buyume orani, nufus artis hizi 2008 kuresel ekonomik krizini temsil eden kukla degisken de analize dâhil edilmistir. Calismada yer verilen serilerin duraganliklari LLC, IPS, Fisher ADF ve Fisher PP panel birim kok testleri ile sinanmis ve serilerin duzeyde duragan olduklari gorulmustur. Panel regresyon analizinde hangi yontemin kullanilacaginin belirlenmesine yonelik olarak Hausman (1978) testi yapilmistir. Yapilan panel regresyon analizleri sonucunda;OECD ulkelerinde, 1996- 2018 doneminde hanehalkina yonelik gerceklestirilen transfer odemeleri ve ekonomik buyumenin gelir dagilimi esitsizligini azalttigi tespit edilmistir. Seriler arasinda nedensellik iliskileri;Dumitrescu ve Hurlin (2012) panel nedensellik testi ile incelenmis ve transfer odemeleri ve nufus artis hizi ile gelir dagilimi esitsizligi arasinda ve transfer odemeleri ile nufus artis hizi arasinda karsilikli nedensellik iliskileri bulunmustur. Ayrica gelir dagilim esitsizliginden ekonomik buyumeye, ekonomik buyumeden transfer odemeleri ve nufus artis hizina dogru da tek yonlu nedensellik iliskileri belirlenmistir.Alternate abstract: LITERATURE SURVEY 1.1. RESEARCH SUBJECT In this study, the effect of transfer payments on income distribution was examined by panel data analysis method, using data from 36 OECD countries for 1996-2018 period. In the study;GINI coefficient was used as the dependent variable, and the data for the ratio of household transfer payments to national income was as the independent variable. As a result of the panel regression analysis;it was determined that in OECD countries, transfer payments to households and economic growth reduced income inequality in 1996-2018 period. Based on the findings of Gustafsson and Johansson (1999), Li et al. (2000), Keane and Prasad (2002), Sylwester (2002), Schwabish et al. (2004), Huber et al. (2004), Afonso et al. (2010), Niehues (2010), Hazman (2011), Holzner (2011), Caminada et al. (2012), Wang et al. (2012), Woo et al. (2013), Martinez-Vazquez et al. (2014), Ilgun (2015), D’Agostino et al. (2016), Cimoli et al. (2017), Eroglu et al. (2017), Urper (2018), Kozuharov and Petkovski (2018), Yardimcioglu and Yayla (2020);It can be stated that the transfer payments made by countries to their citizens have a decreasing effect on the income distribution imbalance. Therefore, it would be beneficial for countries to continue such aids within their means. 1.2. RESEARCH PURPOSE AND IMPORTANCE The study aimed to examine the effect of social transfer expenditures on income distribution. The result that the transfer payments to households reduce income distribution inequality has made the study necessary in terms of guiding government policies. 1.3. CONTRIBUTION of the PAPER to the LITERATURE It is thought that the study using data from 36 OECD countries will make a significant contribution to the literature by the finding that transfer payments to households will reduce income inequality. DESIGN AND METHOD 2.1. RESEARCH TYPE This study is a research paper, and a quantitative research design was adopted in the study. 2.2. RESEARCH PROBLEMS In this study, the effect of transfer payments on income distribution was examined by panel data analysis method, using data from 36 OECD countries for 1996-2018 period. 2.3. DATA COLLECTION METHOD The GINI coefficients are obtained from The Standardized World Income Inequality Database Version 8 prepared by Frederick (2019), which is in the Harvard University Data Bank. Transfer payments were gathered from OECD (2020b), economic growth and population data were from the World Bank (2020a, 2020b). 2.4. QUANTITATIVE / QUALITATIVE ANALYSIS In this study, the effect of transfer payments on income distribution was examined by panel data analysis method, using data from 36 OECD countries for 1996-2018 period. In the study;GINI coefficient was used as the dependent variable, and the data for the ratio of household transfer payments to national income was as the independent variable. Also, economic growth rate, population growth rate, dummy variables representing the 2008 global economic crisis were included in the analysis. LLC tested the stationarity of the series included in the study, IPS, Fisher ADF and Fisher PP panel unit root tests and it was found that the series were stationary at level values. Since the countries in the analysis are spread over vast geography, and they do not have standard policies affecting the balance of income distribution, it is not expected that there will be cross-section dependencies between countries. Therefore, first-generation panel data analysis methods were preferred in the study. In this context, the stationarity of the series was tested by Levin, Lin and Chu (2002, LLC), Im, Pesaran and Shin (2003, IPS), Maddala and Wu (1999), Fisher ADF and Fisher PP panel unit root tests. The method to be used in the panel regression analysis was decided by the Hausman (1978) test. Causality relationships between the series were examined by Dumitrescu and Hurlin (2012) panel causality test. FINDINGS AND DISCUSSION 3.1. FINDINGS as a RESULT of ANALYSIS The existence and direction of causality relationships between series were examined by umitrescu and Hurlin (2012) panel causality test. As a result of this test;the mutual causality relationship was found between transfer payments and income distribution inequality in OECD countries. This relationship implies that when the income distribution imbalance in countries increases/decreases, transfer payments also increase/decrease. As a matter of fact, in the Covid-19 period, developed countries, especially the USA and Canada, gave unrequited money (made transfer payments) to their citizens whose monthly income was below a certain level. Two-way causality relationship between income inequality and population growth rate supports the premise that countries with high population growth rates also have high imbalances in income distribution. The mutual causality relationship between population growth rate and transfer payments also reminds the type of state aid of payments per child, especially in developed countries. The causality relationship from economic growth to transfer payments indicates that countries with higher income can provide more assistance to their citizens. The causality relationship from income inequality to economic growth suggests that when the income distribution imbalances in countries decreases, individuals get the return of their labor more quickly and, thus, they work more efficiently and contribute positively to the economic growth of their countries. CONCLUSION, RECOMMENDATION AND LIMITATIONS 4.1. RESULTS of the PAPER According to the findings obtained at the end of the study;in OECD countries, transfer payments to households in the 1996-2018 period reduced income inequality. This result is significant on the main question that our study focuses on. In that case;it would be beneficial for countries to continue to increase their transfer payments so that they can reduce the income imbalance among their citizens. Increases in economic growth have also reduced income inequality. This suggests that the income generated is shared equitably. Population growth, in addition to these, increased the income distribution imbalance. However, in the fixed effects model, it is seen that this effect is in the decreasing direction. For this reason, no decision could be reached on the effects of population growth. It has been determined that the 2008 Global Economic Crisis has a decreasing effect on the income distribution imbalance in the pooled model but at a statistically insignificant level. 4.2. SUGGESTIONS BASED on RESULTS Based on the findings obtained from this paper, it can be stated that the transfer payments made by countries to their citizens have a decreasing effect on the income distribution imbalance;therefore it would be beneficial for countries to continue such aids within their means. However, at this point, the necessity of preventing some citizens from getting used to living with granted state aid without working and the importance of “teaching people how to fish instead of giving fish” and transforming them into working and producing individuals should not be overlooked. It should not be forgotten that such social assistance is always open to abuse, that people who are not really in need may try to benefit from these aids and this case may put the economy in a difficult situation as in Greece, and the public should take the necessary measures. It is of paramount importance that the income generated by economic growth is distributed equitably among all citizens. At this point, it is essential that states effectively fulfil their functions of regulating and controlling the salary and other personal rights of people working in the private sector. The abnormal increase in the population of the country with imbalanced immigration can reduce the welfare of the residents in the country. For this reason, it is beneficial for states to maintain their immigration policies in line with their economic strength and the number of people they can employ.