An Application of Ordered Logit Model and Artificial Neural Networks in an Income Model

The detection of factors affecting the income distribution is an economically and socially important study subject. Therefore, the researchers aim to model the income and by this way, make suggestions to overcome the difference. In this study, it is aimed to determine the factors affecting the income by using the results obtained from the study of “2010 A Study on Life Satisfaction”, which was performed by TUIK in Turkey. The income models, which were obtained with the help of artificial neural networks and ordered logit model, were compared in terms of estimation power and the obtained results were interpreted.