Inclusive development strategy as a tool for reducing income differentiation of the population of Ukraine

Abstract

The article is devoted to studying the strategy of inclusive development as an essential tool for reducing the differentiation of incomes of the population of Ukraine. The article aims to identify socio-economic trends and conditions for the economic development of the national economy to reveal the most critical imbalances and problems, the elimination of which is a prerequisite for further development. Research methods. To achieve this goal, statistical methods were used, particularly the method of secondary grouping and the method of coefficients. Results. Based on the study, it has been determined that a characteristic feature of economic growth in Ukraine is a low share of labor costs in the growth of sold products. According to calculations, the share of wages in the growth of sales products of the processing industry in 2022 was 5.2%, construction ― 6.3%, and trade ― 3.1%. A negative trend was observed in agriculture. In 2019, About 26% of the total increase in sales was used for remuneration of labor, while in 2022, it decreased to 1.6%. Thus, economic development in Ukraine is characterized by a low share of wages in the growth of sold products. Inclusive development is based on the transformation of distributive processes related to income formation, distribution, and redistribution between population segments. The research has significant implications, as it has been determined that the decrease in the number of the population receiving total equivalent incomes below the subsistence minimum is largely due to the increase in the minimum wage. This finding underscores the potential impact of policy changes on income differentiation. In order to assess the differentiation of the standard of living of the population, a triple grouping by the size of the total equivalent incomes is carried out. It is proved that about 1/3 of the population receives monetary income at the level of the minimum wage. According to calculations, the proportion of households with average Cash income at the level of the minimum wage (up to 2.0 subsistence minimums) in 2019 was 37.6% and 2021 — 31.4%, respectively. The share of households that form the so-called "middle class" is insignificant. At the same time, the share of incomes that exceed five times the subsistence minimum per household is growing. Practical significance. The presented calculations indicate an increase in the differentiation of economic development, which requires active state intervention in the processes of distribution and formation of incomes of the population. Keywords: strategy, inclusion, inclusive development, income differentiation, incomes of the population, economic growth