scholarly journals INCOME INEQUALITY IN UKRAINE: FEATURES OF ECONOMIC BEHAVIOR OF HOUSEHOLDS

Author(s):  
Fomina O. ◽  
Hoholieva N.

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 statis-tics 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 so-cio-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 coef-ficient 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. Keywords: income inequality, economic behavior, welfare level, Gini coefficient, Lorentz curve. У статті виявлено особливості економічної поведінки домогосподарств на основі дослідження нерівності та статистич-ного аналізування їх доходів і витрат за період 2014–2019 років. На основі методів економіко-математичної статистики проаналізовано диференціацію населення за рівнем середньодушових еквівалентних доходів за 2019 рік, розраховано коефіцієнт Джині. За допомогою графічно-варіаційного методу побудована крива концентрації Лоренца. Розрахований коефіцієнт Джині для економіки України у 2019 році складає 23,50% та означає, що наявний помірний рівень нерівності в країні. Аналізування статистики доходів та витрат домогосподарств надає інформацію про низький рівень життя насе-лення, оскільки основними джерелами формування грошових доходів домогосподарств є оплата праці, пенсії, стипендії, соціальні допомоги, а найбільш вагомою статтею витрат залишаються витрати на продукти харчування. Економічна по-ведінка домогосподарств, що випливає з поточного рівня життя населення, структури його ресурсів і витрат, визначається як пасивна та характеризується пристосуванством, конформізмом та терплячістю населення до умов їх існування, що заважає активному розвитку соціально-економічної системи та зміни економічного мислення населення. Крива Лоренца підтверджує низький рівень диференціації населення в Україні, але зважаючи на високу долю бідного населення в країні є потреба удосконалення методики збору та формування статистичної інформації. Ключові слова: нерівність доходів, економічна поведінка, рівень добробуту, коефіцієнт Джині, крива Лоренца.

2019 ◽  
Vol 19 (148) ◽  
pp. 1 ◽  
Author(s):  
Frederic Lambert ◽  
Hyunmin Park

We analyze microdata from Mexico's survey on household income and expenditures (ENIGH) to study the evolution of income inequality in Mexico over 2004-16, identify its sources, and investigate how it was affected by government social policy. We find evidence of only a small decline in inequality over this period. The observed decline may be attributed to government transfers, notably targeted cash transfers (Prospera) and non-contributory pensions. In 2016, those two programs accounted for more than two thirds of the reduction in the Gini coefficient due to government transfers. Other transfer programs such as farmland subsidies (Proagro), government scholarships, and non-monetary transfers for medical expenditures have not been as effective.


Author(s):  
Yousef VEISANI ◽  
Ali DELPISHEH ◽  
Reza VALIZADEH ◽  
Sattar KIKHAVANI

Background: Research in source of inequality and enhance of knowledge can be reducing the inequalities in the coming decades. Therefore, we aimed to ascertain effects of income inequality measured by Gini-coefficient to death from suicide in Iran. Methods: This is an ecological study on the relation of Gini-coefficient and suicide death in Iran. Data were obtained from Iranian Urban and Rural Household Income for Gini-coefficient and Expenditure Survey and Iranian Forensic Medicine Organization for suicide. Concentration Index was used to determine of inequality by Gini-coefficient in suicide death and prediction model was applied by Stata software. Significant level considered less than 5%. Results: A Gini-coefficient between 0.2523 and 0.3755 (mean, 0.3092) was observed. The overall concentration index CI was -0.10 (95% CI= -0.19 to -0.01), therefore our results confirmed a positive inequality in incidence suicide rate result from income inequality in Iran. Conclusion: Our results showed a positive inequality due to Gini-coefficients in suicide death. This study could be a start for investigation of inequality source in geographical units and at the individual level in all provinces


2017 ◽  
Vol 8 (4) ◽  
pp. 515-526
Author(s):  
Jacob Novignon

Purpose The purpose of this paper is to decompose income inequality across various household income components and to estimate the marginal effects of changes in each of the income components on overall income inequality in Ghana. Design/methodology/approach Data were collected from the fifth and sixth rounds of the Ghana Living Standards Surveys. Gini coefficient was estimated and decomposed across structured income components. The marginal effects were obtained by computing the partial derivatives of the Gini coefficient with respect to a percentage change in a particular income source. Findings The results suggest that, in general, income inequality has increased marginally over the years (Gini coefficient of 0.66 in 2013 and 0.62 in 2006). Inequality was, however, higher in urban areas than in rural areas in 2013 with the reverse observed in 2006. The income component decomposition analysis suggests that wage employment income dominated household income in both rural and urban areas, even though the magnitude was higher in urban areas. Farm income was only dominant in rural communities in 2006. Self-employment and remittance income had consistent inequality reducing effects on total household income distribution. Originality/value The study goes beyond inequality studies in Ghana to estimate the marginal effect of income components on inequality. Such decomposition will allow for effective policy targeting in a resource-constrained developing country like Ghana.


2020 ◽  
Vol 21 (1) ◽  
Author(s):  
Viktória Bobáková

The problem of inequality has become increasingly important in recent years, increasing its weight in addressing the problems of economic and regional development lagging behind. Although income inequality in Slovakia is among the lowest in Europe, there are regions in Slovakia where income inequality is high. The aim of the paper is to contribute to the expansion of knowledge in the area of income inequality in self-governing regions in the Slovak Republic. In the paper we examine the causes of inequalities, measure the levels of inequality over the selected time period based on the development of indicators of net money income and household expenditures, average disposable equivalent household income of indicators S80 / S20, Gini coefficient and poverty risk ratio for 2014-2018.


Author(s):  
Gerhard Bosch ◽  
Thorsten Kalina

This chapter describes how inequality and real incomes have evolved in Germany through the period from the 1980s, through reunification, up to the economic Crisis and its aftermath. It brings out how reunification was associated with a prolonged stagnation in real wages. It emphasizes how the distinctive German structures for wage bargaining were eroded over time, and the labour market and tax/transfer reforms of the late 1990s-early/mid-2000s led to increasing dualization in the labour market. The consequence was a marked increase in household income inequality, which went together with wage stagnation for much of the 1990s and subsequently. Coordination between government, employers, and unions still sufficed to avoid the impact the economic Crisis had on unemployment elsewhere, but the German social model has been altered fundamentally over the period


Author(s):  
Philippe Askenazy ◽  
Bruno Palier

This chapter describes France as apparently one of the few rich countries to have avoided a significant increase in income inequality in recent decades. However, stable average inequalities mask an asymmetric trend of income between age groups, the elderly improving their situation while the young see theirs worsening. Furthermore, it shows that behind this relatively still surface, a general trend of precarization of more and more ordinary workers is occurring. The importance of wage-setting processes and of regulation of the labour market is brought out, together with the way the tax and transfer systems have operated, in restraining the forces driving inequality upwards. Wage growth, while limited, has thus been reasonably uniform across the distribution and together with the redistributive system have kept household income inequality within bounds. However, in response to high unemployment both regulatory and tax–transfer systems have served to underpin the very rapid growth in precarious working over the last decade, representing a very serious challenge for policy.


Author(s):  
Rodolfo Hoffmann

Income inequality in Brazil, already high, increased after the military coup of 1964 and remained very high even after democratization in the 1980s. It decreased substantially in the period 2001–2014, after inflation was controlled. The Gini index of the per capita household income dropped from 0.594 in 2001 to 0.513 in 2014. The determinants of this decline in inequality are analyzed considering the components of that income and how each one affected changes in inequality, showing the impact of changes in the remuneration of private sector employees and in pensions paid by the government, as well as federal transfer programs. Changes in education lie behind the first of these effects, and the increase of the minimum wage reinforced all three. The economic crises after 2014 interrupted the process of decline, and among economically active persons, inequality even increased from 2014 to 2015. Measures to further reduce inequality are suggested.


2019 ◽  
Vol 127 (6) ◽  
pp. 2795-2835 ◽  
Author(s):  
Lasse Eika ◽  
Magne Mogstad ◽  
Basit Zafar

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