POPULATION’S INCOME GENERATION AND CLASSIFICATION OF ITS SOURCES

Abstract

The article concerns the problems of population’s income generation. The sources for population’s income generation determine both its total size and the factors affecting it. According to the author, the income creates current market demand affecting the economic system as a whole, as well as forms the basis for the future development of economy and society. In her analysis the author builds upon the current classification of the population’s income sources used by national statistics. On this basis she draws the conclusion concerning the importance of the population’s employment; deficiency of business activity; considerable scale of black economy. However, based on the existing classification the author suggests another classification of the population’s income sources. The key group of income sources of this classification is the income from the current activities, which includes earnings and entrepreneurial income (including the black part of the both of them). The author also identifies income from the past activities (savings), support from the society, and income from unidentified sources. The author points out the need for stimulation for increase of the income from the former group of sources, however, stressing the concept that the structure of the income in terms of particular sources within the group is not of significant importance for economic and social development.

Keywords

• entrepreneurship
• Income
• income generation
• national social and economic development
• social equity
• consumption
• earnings
• black economy