Using most similar design and process-tracing methodology, this chapter investigates the divergent outcomes in income inequality in Turkey and Spain. Even though social-security systems in both countries have been hierarchical, benefiting civil servants, the security apparatus, and workers in key sectors and others in formal sectors at the expense of the rest, they have adopted different social policies over time. This chapter discusses how Turkish governments, with a focus on 1983 to the present time, have designed contributory and noncontributory pensions, healthcare, and other social programs that have affected household income differently. In democratic Spain, however, pension-related policies and unemployment benefits have been dominant forms of social policy, but the Spanish party system has not created major incentives for political parties to utilize these policies in electoral campaigns until recently. This chapter ends with a discussion of how social policies in Turkey and Spain have affected inequality since the two nations transitioned to democracy.
