Differentiation of family incomes

Priority for the importance of Economy of Ukraine. Sources, functions, structure of income Household as a politico-economic category. Family income - the economic basis of reproduction. Levels of income of the population. The structure of family income.
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Introduction

1.1 Sources, functions and structure of income

1.2 Differentiation of incomes

Successful development of socially-oriented market system depends on the level of consistency with the level of economic growth and differentiation of incomes. The present stage of transformation imposes significant restrictions on the use of traditional developed market systems leverage income policy. There is a need to develop science-based comprehensive approach to improving the mechanism of state regulation, aimed not only at income distribution, but also on the scope of their formation, which would ensure through effective implementation of human potential social reorientation of the economy. Priority for the importance of Economy of Ukraine is taking steps to stimulate the state accelerated the growth of primary income, which directly depend on the efficiency of public employment, compared with secondary, which are only means of support capabilities meet the minimum needs of the consumer population.

Sources, functions and structure of income Household income as a politico-economic category represent a certain amount of money and material goods and services received in the course of economic functions and households, primarily families, with about a relationship where there are private property rights in all spheres of social reproduction.

Personal income distribution - the distribution of income between different individuals, families or households. Analysis of personal income distribution makes it possible to identify the factors that determine the level and structure of individual income families.

Family income - the amount of income deliberately organized on the basis of family ties and community life of a small group of people whose livelihoods aimed at the realization of social, economic and spiritual needs of individuals, families and society as a whole.

Family income - the economic basis of family reproduction.

There are various sources of family income:

- Wages;

- Income from property;

- Income from personal subsidiary economy;

- Income from cooperative activities;

- Income from self-employment;

- Government transfer payments (pensions, unemployment benefits, scholarships, free services of health, education, etc.) - Income from other sources (inheritance, etc.). [11, p. 190] Formation of incomes can be expressed by the following formulas:

Dt + DP + Dm = DB (1.1) DB + T = Dv (1.2) Dv - У (P + Op) = MS (1.3)

where DB - income, Dt - income from employment; DP - Income from business activities; Dm - income from property (rent, dividends, interest), T - Transfer payments from the public sector (state) Dv - gross income; MS - net income, P - taxes Op - other mandatory payments. [10, c.175]

Household income in a market economy perform the following functions:

1) prosperity - providing a standard of living;

2) motivation - contribute to the effective scope of the production process by creating a new system of incentives;

3) Social - form the corresponding quality of life, covering working conditions, living and recreation, social guarantees and security, law enforcement and human rights, natural and climatic conditions and environmental conditions, availability of free time and opportunities for its effective use and subjective sense of calm, comfort and stability.

Depending on the form of a distinction is made between cash and income in kind. Formation of incomes at the expense of labor remuneration, payment of social insurance, business income, income from property, income from personal subsidiary plot and self-employment, other income (child support, fees, charitable aid, etc.). Incomes are divided into general and clean.

General revenues include all revenues are calculated before taxes and obligatory payments.

family income ukraine economy

Net income - the result of redistributive processes. These are the income remaining after these payments.net income adjusted taking into account the natural and social transfers.

Natural products include personal income part-time farm, used for personal consumption, transfers in kind, as well as wages in kind. [3, p.98] There are nominal and real incomes. Nominal income - is the value of accrued benefits and natural issue. Real income - is nominal income, adjusted for changes in commodity prices and tariffs. Their value depends on the value of nominal income and wages. Consumer price index affects the purchasing power of nominal income as follows:

Dr = Days / IC (1.4) where Dr. - real incomes; Days - nominal income; IC - Consumer Price Index.

Nominal and real income and the size and dynamics of the main income of certain groups, such as wages, pension or scholarship, provide an overview of the standard of living. Depending on the sources of revenue can be labor, netrudovi hidden.

The concept of level and quality of life are closely related and determine the state of economic and social development. The level of family income should not be below the subsistence level, ie the value that in value terms reflects the legislatively defined level of consumption of goods and services necessary for human life and preserve her health.

Under the Law of Ukraine "On Living Wage" standard cost of living forms per month per person, and also for those who belong to the main social and demographic groups. The subsistence level is an indicator defining poverty in society and reflects the quality of consumption in the population.

Living wage - a minimum number of vital resources needed to support employee life and renewal of its workforce. It defines the lower limit of the required level of social life in certain socio-economic conditions of society. [14, p. 203] In analyzing the cost of living distinguish physiological minimum - cost of goods and services necessary to meet basic physiological needs, and social minimum (minimum budget of plenty) - Minimum Standards meet the physiological, social and spiritual needs, ie the cost of goods and services that society considers necessary for preservation of an acceptable standard of living.

Levels of income of the population can be represented schematically (Figure 1.1):

magnitude of income, which reflects the upper limit of poverty. This income level at which its recipients can not be considered serednozabezpechenymy is the minimum consumer budget, poverty, poverty threshold, and so on.

magnitude of income, reflecting the lower limit of poverty. This minimum level of income that enables its recipient to satisfy the minimum level of basic needs. This is income that modern civilized state should provide each member of society. Lower limit of low income represents about 40% of median income in the state;

magnitude of income that reflects the guaranteed level of security. Such income usually does not exceed the upper limit of low income and no less than its lower limit, ie the physiological minimum, this level is a social minimum. Specific forms of guarantees can be formally defined pensions, wages, use of various cash payments and other means of assistance. At the location of the state-guaranteed minimum between the upper and lower bound poverty affects a number of factors: state of the economy, especially social policy.

In a modern market economy income individuals, families (households) differ not only in terms, but also in structure.

The structure of family income on their areas of use:

- Food;

- Purchase of clothing and footwear;

- Purchase of durable goods;

- Socio-cultural and personal services;

- Utilities;

- Transport;

- Savings;

- Other expenses.

Cost Structure of the family is an important indicator of economic development.

By law, Engel (German statistics, which in the XIX century. Made an analysis of consumption of families (individuals) with different income levels), with increasing family income increases overall consumption goods, but in different proportions and structural relations. With the growth in family income reduces the share of the cost of food, the share of expenditure on clothing, undergo minor changes in housing costs and utilities, but the share of the costs to meet the cultural and other non-material needs significantly increases. Total return is the main indicator of material welfare of the population and includes all types of income and cost of natural revenue derived from personal subsidiary plot and used for personal (household) consumption. In addition, the total income includes the cost of free services received by the state and local budgets and fund companies - healthcare services, education, subsidized housing, transportation, meals and more. [15, p.152] In conditions of market environment in the economy of Ukraine due vzayemozumovlenoyi of objective and subjective factors forming the population characterized by the following trends:

- Expansion of the structural components of family income;

- Significantly reduced the overall level of r...