INCOME INEQUALITY IN UKRAINE: FEATURES OF ECONOMIC BEHAVIOR OF HOUSEHOLDS

Keywords: income inequality, economic behavior, welfare level, Gini coefficient, Lorentz curve

Abstract

The goal of article is to identify the characteristics of economic behavior of households based on the study of inequality and statistical analysis of their income and expenditure for the period of 2014-2019. The population differentiation according to the level of per capita equivalent income for 2019 was analyzed and Gini coefficient was calculated based on the methods of economic and mathematical statistics. The Lorentz concentration curve was constructed using the graphical-variational method. Based on the method of analysis and synthesis, the resources and expenditures of households in 2014-2019 were studied and conclusions were made about their economic behavior. The calculated Gini coefficient for Ukraine's economy in 2019 is 23.50% which means that there is a moderate level of inequality in the country. The analysis of household income and expenditure statistics provides information on low standards of living, as the main sources of household income are wages, pensions, scholarships, and social benefits; the most important item of expenditure is food expenditures. Economic behavior of households, resulting from the current standard of living, the structure of its resources and expenditures, is defined as passive and is characterized by adaptation, conformism and patience of the population to their living conditions, which hinders the active development of socio-economic system and the change of economic thinking. The Lorentz curve proves the low level of population differentiation in Ukraine, however, given the high proportion of the poor in the country, there is a need to improve the methodology for collecting and compiling statistical information. The scientific novelty is in the practical application of the method of calculating the Gini coefficient and construction of the Lorentz concentration curve on the basis of data from the State Statistics Service was developed. Based on the analysis of household income and expenditure, the type of their economic behavior was defined as passive. The practical significance is in the basis for the study of different types of economic human behavior in the system of social relations based on the analysis of socio-economic inequality was developed.

References


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Published
2021-06-25
Pages
5-11
Section
SECTION 1 ECONOMIC THEORY AND HISTORY OF ECONOMIC THOUGHT