Population income differentiation under modern condition of economics development

Abstract

Income generation is a problem that cannot leave anyone indifferent. It is known that income in a market economy is a fee for the use of production resources or a reward for the contribution to the creation of the product. It is the main source of meeting the needs of consumer goods and services, due to their accumulation and consumption, and the level and quality of life is determined by the quantity and quality of goods that can be purchased for their income. Income determines the level and quality of life of the population and is an indicator of its well-being. In Ukraine, the differentiation of incomes is growing every year, which weakens the economic development of the country. Half of the country’s population lives below the poverty line, and skilled labor emigrates abroad as a result of growing social tensions. Political instability, military confrontation in the east, low living standards, the epidemiological situation associated with the coronavirus pandemic, the development of the shadow economy, high levels of corruption, low wages, and impoverishment have led to income differentiation. Therefore, the state should focus all its activities not only on socio-economic development of the country, finding effective methods, norms, standards to improve the quality and quality of life, but also pursue a reasonable and balanced income regulation policy that will reduce the ratio between poor and rich. The income of the population should reflect the social status of the individual or household. However, currently incomes do not show the real standard of living of the population, so they are studied and studied together with the costs. It should be noted that in Ukraine in recent years there has been deterioration in living standards population, which leads to a reduction in household savings (accumulation of non-financial assets). The results of the study show that the population spends most of its income on consumption, namely on food and do not have the opportunity to make savings, which can be investment resources. Therefore, the lack of monetary resources in the domestic market forces the government and economic entities to attract them abroad, which leads to an increase in external debt and a decrease in the welfare of the population. It is possible to overcome income differentiation, but it is difficult, it requires financial resources and an effective and competent socio-economic policy aimed at improving the standard and quality of life.