¹1 (32) 2018
Demography and social economy, 2018, 1(32):153-165
doi: https://doi.org/10.15407/dse2018.01.153
ÓÄÊ 316.34:311(477)
JEL CLASSIFICATION: Í23, D63
N.M. ROMANCHUK
PhD, Researcher
Ptukha Institute for Demography and Social Studies of National Academy of Science of Ukraine
03032, Kyiv, blvd Taras Shevchenko, 60
E-mail: Romanchuk_Nataliia@ukr.net
ASSEMENT OF HOUSEHOLD ECONOMIC INEQUALITY OF UKRAINE BASED ON THE EXPANDED INCOME CONCEPT
Section: LEVEL OF LIFE AND EMPLOYMENT
Language: Ukrainian
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.
Key words: expanded income concept, cash income, inequality indices, income distribution, macrodata.
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