European Cooperation (Apr 2022)
MULTIVARIATION OF INNOVATIVE APPROACHES TO EVALUATION AND MODELING OF POPULATION INCOME INEQUALITY
Abstract
The problem of inequality is perceived as a challenge to modern society, since the growth of inequality leads to the deepening of migration processes, increasing social tensions, creating prerequisites for changing the social system, fundamentalisation of religious groups, political instability and military conflicts, economic and humanitarian wars. This article is an analytical summary of scientific methods for assessing economic inequality. The purpose of the article is to evaluate the inequality of the population of Ukraine by sources of income. In accordance with the set goal, the dynamics of changes in the Gini index by the amount of monetary income were analyzed. The general scientific methods of scientific research and the basic provisions of the theories of socio-economic inequality, economic growth and innovative management became the methodological tools of the conducted research. To determine the degree of inequality of the population in terms of income, the entire spectrum of variation indicators (coefficient of variation, mean square deviation, etc.) was used. At the same time, special coefficients were analyzed, which make it possible not only to assess the degree of income inequality but also to measure the influence of factors on this phenomenon. These are primarily the Lorenz coefficient and the Lorenz curve, the Atkinson index, the Theil index, the decomposition of the specified coefficients, the coefficient of funds, the coefficient of differentiation, and the coefficient of contrasts. The article decomposes the Gini index by sources of income and identifies the main sources of income that have the greatest impact on the growth of inequality in the distribution of income of the population of Ukraine. The determination of economic inequality in the distribution of incomes of the population was carried out on the basis of the dynamic stochastic model of general equilibrium (DSGE). In the course of building the DSGE model of inequality of income distribution, three macroeconomic subjects operating in a closed economy were identified, namely households, firms and the state. The total amount of capital invested in a specific sphere of the economy and the total number of the economically active population, which is a parameter of the labour force in the production function, were also used. The obtained results are useful in the study of the issue of determining the causes of 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. The results of the conducted research can also be useful for calculating the basic indicators of the socio-economic development of the regions and the country in general.
