Assement of Household Economic Inequality of Ukraine Based on the Expanded Income Concept

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Assement of Household Economic Inequality of Ukraine Based on the Expanded Income Concept

Journal Title: Демографія та соціальна економіка - Year 2018, Vol 1, Issue

Abstract

The results of assessment of the characteristics of household economic differentiation in Ukraine according to the expanded income, which is determined on the basis of a generalized model that includes both income and additional components, which are, in particular, indirect taxes, imputed rent and the cost of public services in the field of education and health, consumed by households, are examined. The approaches to the evaluation of the expanded income taking into account the available statistical information in Ukraine are presented. The results of assessment of Gini index, 90/10, 80/20 ratios and household income distributions based on cash, total and expanded incomes are presented. The evaluation is carried out with the use of the representative model of households in Ukraine, which contains a system of household microlevel characteristics, such as cash and total income (defined on the basis of the sample surveys), as well as the imputed values of indirect taxes, rent, and costs of the public social services. Differences in the distribution of cash, total and expanded income for household decile groups are defined. It is shown that the Gini index value assessed on the basis of the expanded income in 3 p. p. and 1 p. p. is lower compared to cash and total incomes, respectively. The features of the formation of the expanded income components for different groups of households according to their socio-demographic and economic characteristics are determined. It is shown that the main limitations of the concept’s application are the imperfection of statistical information, which is not capable of reliable and regular assessments of the expanded income components, as well as the need for additional research to develop methodological approaches for evaluation of the income components. The implementation of the expanded income concept is most appropriate in the study of household economic differentiation as an indicator of implementation effectiveness of the redistribution mechanisms of social and fiscal systems of the country and in case of determination of these systems’ functioning effectiveness, taking into account their interconnection.

Authors and Affiliations

N. M. ROMANCHUK, Н. М. РОМАНЧУК

Keywords

EP ID EP284120
DOI 10.15407/dse2018.01.153
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