ASSESSMENT OF INEQUALITY OF THE POPULATION OF UKRAINE BY SOURCES OF INCOME
DOI:
https://doi.org/10.37332/2309-1533.2021.3-4.14Keywords:
Key words, population inequality, Lorentz curve, Gini index, Gini index decomposition, spline interpolation.Abstract
Aliluiko A.M., Yeromenko V.O., Stefurak N.A. ASSESSMENT OF INEQUALITY OF THE POPULATION OF UKRAINE BY SOURCES OF INCOME
Purpose. The aim of the article is the analysis of inequality of the population of Ukraine by sources of income.
Methodology of research. A set of general scientific and specific methods of economic research was used in the course of the research, in particular, methods of theoretical generalizations: analysis, abstract and logical method (at substantiation of modern tendencies of inequality of the population of Ukraine on incomes); economic and statistical methods (in assessing the dynamics of inequality of the population of Ukraine in terms of monetary income); methods of mathematical statistics (when calculating the Gini index and the decomposition of income); methods of graphic display of the received results of research.
Findings. The Gini index was calculated using the spline interpolation method to construct the Lorentz function. The Gini index is compared with known calculation methods, the description of the extended method of decomposition of the Gini index is carried out, and also this method is applied on statistical data of distribution of households of Ukraine on the level of monetary incomes. The influence of changes in sources of income on the general level of differentiation is analysed. According to the results of the study, the main factors influencing the level of income distribution and the possibility of reducing the level of stratification of the population of Ukraine were identified.
Originality. It is proposed to use the spline interpolation method to construct the Lorentz function, which involves the calculation of the Gini index. The method of the Gini index decomposition identifies the sources of income that have the greatest impact on the growth of income inequality in Ukraine in the period 2014-2020.
Practical value. The obtained results of the research are useful in the study of determining the reasons for the influence of certain factors on the level of income distribution and the possibility of reducing the level of stratification of the population of Ukraine.
Key words: population inequality, Lorentz curve, Gini index, Gini index decomposition, spline interpolation.
References
Libanova, E.M. (2020), Bidnist naselennia Ukrainy: metodolohiia, metodyka ta praktyka analizu [Poverty of the population of Ukraine: methodology, methods and practice of analysis], Vydavets “Sochinskyi M.M.”, Uman, Ukraine, 456 p.
Semenov, V.V. (2008), Ekonomiko-statystychni modeli ta metody doslidzhennia sotsialnykh protsesiv: nerivnist, bidnist, poliaryzatsiia: v 2 t. [Economic and statistical models and methods of studying social processes: inequality, poverty, polarization : in 2 Vol.], monograph, RVV PUSKU, Poltava, Ukraine, Vol. 1, 237 p.
Kholod, N.M. (2009), Rozpodil dokhodiv ta bidnist u perekhidnykh ekonomikakh [Income distribution and poverty in transition economies], monograph, Vydavnychyi tsentr LNU im. Ivana Franka, Lviv, Ukraine, 442 p.
Bulavynets, V.M. and Zaklekta, O.I. (2017), “Income inequality of population in Ukraine: factors and current state”, Efektyvna ekonomika, no. 11, available at: http://www.economy.nayka.com.ua/?op=1&z=5870 (access date April 25, 2021).
Hvelesiani, A.H. (2009), “The estimation of cash income structure by using Gini coefficient decomposition in Ukraine”, Demohrafiia ta sotsialna ekonomika, Iss. 2(12), pp. 153-161.
Lavruk, I.H., Todoriuk, S.I. and Kyfiak, V.I. (2019), “Income inequality in Ukraine”, Investytsii: praktyka ta dosvid, no. 11, pp. 40-44.
Prymostka, O.O. (2016), “Methodological approaches to assessing quality of life indicators of populations Ukraine”, Rehionalna ekonomika, Iss. 2(80), pp. 80-88.
Shcherba, Kh.I. (2013), “Income distribution in Ukraine and decomposition of the Gini coefficient”, Visnyk Natsionalnoho universytetu "Lvivska politekhnika". Menedzhment ta pidpryiemnytstvo v Ukraini: etapy stanovlennia i problemy rozvytku, no. 767, pp. 368-373.
Yitzhaki, S. and Schechtman, E. (2013), The Gini methodology : a primer on a statistical methodology, Springer, New York, USA, 548 p.
Dmytryshyn, L.I. (2013), “Modeling the relationship between income inequality and living standards and poverty”, Modeliuvannia rehionalnoi ekonomiky, no. 1, pp. 59-70.
Kostrobii, P., Kavalets, I. and Hnativ, L. (2013), “Mathematical modelling of social inequality index”, Fizyko-matematychne modeliuvannia ta informatsiini tekhnolohii, Iss. 17, pp. 81-91.
Jenkins, S.P. (1995), “Accounting for Inequality Trends: Decomposition Analyses for the UK, 1971–1986”, Economica, no. 62, pp. 139-191.
Nivorozhkina, L. (1998), “Methods for decomposition of the Gini coefficient by components of total income”, Voprosy statistiki, no. 5, pp. 61-67.
State Statistics Service (2020), “Expenditure and resources of households of Ukraine in 2009-2019 years: statistical collection”, available at: http://www.ukrstat.gov.ua/ (access date April 25, 2021).
“Giny index according to the World Bank”, available at: http://data.un.org/Data.aspx?d=WDI&f=Indicator_Code%3ASI.POV.GINI (access date April 25, 2021).
World Happiness Report 2021, available at: https://worldhappiness.report/ed/2021 (access date April 25, 2021).
Borodchuk, N. and Cherenko, L. “Fighting COVID-19 in Ukraine: Initial estimates of the impact on poverty”, available at: https://www.unicef.org/ukraine/media/5811/file/COVID%20impact% 20on%20poverty%20ukr.pdf (access date April 25, 2021).
Shorrocks, A.F. (1982), “Inequality decomposition by factor components”, Econometrica, no. 50, pp. 193-211.
Downloads
Published
Issue
Section
License
Open-access articles (open-access journals)
Authors whose articles are published in open-access retain all rights to the content of the articles.
Open access articles are committed to be published under Creative Commons Attribution (CC BY) 4.0. This license allows others to distribute, edit, correct and build upon your work, even commercially, as long as they indicate your authorship. Detailed information at Creative Commons site: https://creativecommons.org/licenses/by/4.0/
Permissions for open-access journals
If the article is published in open-access under CC BY 4.0 or CC BY-NC 4.0 (which was possible till the 15th of December, 2018) licenses, users may reproduce it in accordance with their terms.
Additionally, if the article had been published under CC BY-NC 4.0 (this license authorizes others to download your works and share them with others as long as they indicate your authorship, but they can’t use them commercially in any case.), the use for the following commercial purposes requires permission:
– reproduction of content in a work or product intended for sale;
– reproduction in presentations, brochures or other marketing materials used for commercial purposes;
– distribution of the content to promote or market a person, product, course, service or organization;
– text and data mining for the purpose of creating a saleable product or product which benefits from promotional or advertising revenue;
– use of the content by a commercial entity or individual for the purposes of remuneration, directly or indirectly through sale, licensing, promotion or advertising;
– linking to the content (in an email, webpage, portable electronic device or otherwise) for the specific purpose of marketing or advertising a person, product, course, service or organization for commercial benefit.
For further details and permission requests, please contact.