Economics and Business Management

Income as one of the well-being factors of the population of Ukraine: Current state

O. Pashchenko, Olena Zharikova, L. Oliinyk
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Abstract

The article studies and substantiates the impact of income on the welfare of the population of Ukraine. The structure of incomes and peculiarities of their formation in modern conditions are analysed. It has been found that 62.3% of the income is accounted for by wages as one of the factors of population welfare. Different interpretations of the essence of wages are considered. The correlation of real, nominal wages and the consumer price index over the past ten years is analysed. It is found that in Ukraine the purchasing power of the population's income is low, since the price level and inflation are growing faster than nominal incomes. A comparison of GDP per capita in European countries and Ukraine is made. It has been found that Ukraine ranks last among the countries of the world in terms of GDP per capita. The condition for increasing wages is economic growth or GDP growth. A scatter diagram has been formed, which allowed to formulate an assumption about the existence of a logarithmic relationship between the growth rates of average annual wages and GDP per capita by country. The relationship between the average annual growth rate of GDP per capita and wages is substantiated on the basis of correlation and regression analysis. A comparative analysis of the minimum and average wages of European countries and Ukraine is carried out. Ukraine's ranking in the international context is analysed. The study shows that there is inequality in the distribution of incomes in our country, which is caused by the shadow economy, low living standards, the mismatch between wage growth and purchasing power, impoverishment of the population, migration of highly skilled labour abroad and corruption. Measures that will help increase household incomes are proposed

Keywords

incomes of the population; GDP per capita; differentiation of population incomes; salary; standard of living

Suggested citation
Pashchenko, O., Zharikova, O., & Oliinyk, L. (2022). Income as one of the well-being factors of the population of Ukraine: Current state. Economics and Business Management, 13(2), 51-69. https://doi.org/10.31548/bioeconomy13(2).2022.51-69
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