Professional Documents
Culture Documents
лекц. household incomes
лекц. household incomes
Y (DI) = W + MI + EP + TR,
Y - personal Disposable income, W - wages, MI - mixed income (IIO), EP
-earnings on property, TR - social transfers.
Labor is more than an abstract factor of production. Workers are people who want
good jobs with high wages so that they can buy the things they need and want.
Wage is a transformed form of value and price of the "labor force" as a
commodity, depending on the quantity and quality of labor input трудовой вклад.
Volume of Wage depends on the following factors:
1. value of labor force;
2. demand and supply on labor market;
3. the quantity and quality of goods produced;
4. length of a working-day;
5. legislature on minimum wage and indexation of income
6. competition and monopoly on labor market, impact of unions
Wage performs functions:
reproductive, providing expanded reproduction of the labor force;
stimulating, motivating employees to improve the skills, quality and efficiency;
distributive, promoting overflow of labor from less to more efficient industries.
There are two main forms of wages: salary and wage. Salary depends on the
amount of time worked. Wage depends on the number of goods produced.
On the basis of these forms of wages the following wage systems are built:
Various methods and indicators are used to assess the level of households’
differentiation of incomes. Lorentz curve, decile coefficient, Gini coefficient are
applied most often.
Lorenz Curve is a graph of the actual distribution of income among families with
different incomes compared with even distribution.
area of OCA
Gini coefficient = area of OAD triangle
Gini coefficient in differ. countries in 2011-2014: Ukraine 0,24, Sweden and
Belarus 0,27; Germany France UK 0,33; USA 0,41; Brazil 0,52.
Decile coefficient reflects the ratio of the average income of the 10% of richest
population to the average income of the poorest 10%. In EU Decile coefficient is 6:1,
in Ukraine 30:1.