Abstract

Economic freedom is the realization of productive activities without any limitations or restrictions. Unrestricted activities can have a positive impact on the economic development processes of societies In this context, the aim of the study is to investigate whether factors such as economic freedom and its subcomponents, democracy coefficient, and per capita income level have a significant effect on income inequality.. The research conducted for 17 different countries, mostly selected from developing countries, including Turkey, and for the period 1995-2020. Estimation made by quantile regression and four different quantile interavls created. According to the results, the improvement in property rights had an increasing effect on income inequality for all quantile levels, while financial freedom and investment freedom had a decreasing effect on income inequality for different quantile groups. Increasing per capita income levels and democracy have also had the effect of reducing income inequality for different quantile groups.