Incomes of population as a leading factor for the human potential formation and development

Natalia Karpenko
Senior Lecturer of Personnel Management and Labor Economics Department, Odessa National Economic University, Ukraine, e-mail: nataly_karpenko@ukr.net, ORCID ID: https://orcid.org/0000-0003-1045-1350

Cite this article:

Karpenko, N. (2018). Incomes of population as a leading factor for the human potential formation and development. Ed.: M. Zveryakov (ed.-in-ch.) and others [Dokhody naselennia yak providnyi chynnyk formuvannia ta rozvytku liudskoho potentsialu; za red.: М. I. Zvieriakova (gol. red.) ta in.], Socio-economic research bulletin; Vìsnik socìal’no-ekonomìčnih doslìdžen’ (ISSN 2313-4569), Odessa National Economic University, Odessa, No. 3 (67), pp. 140‒150.

Abstract

The article substantiates the multifaceted impact of population incomes on the human potential formation and development. The role and importance of human factor for the economy and society effective development is highlighted. The human potential in Ukraine was estimated by the integral index of the human development index. The Ukraine’s rating in terms of human development in the international aspect is analyzed. The place of our country in the world in the system of human development is determined. The latest trends in the sphere of human potential formation and development in Ukraine are highlighted. The income’s place and importance in the human development concept, the income’s relationship not only with the material, but also with the spiritual sphere of human activity, are investigated. The main current trends in the population incomes structure and dynamic are identified and analyzed. The wages role and influence on the human potential formation is revealed. The dynamics of nominal and real wages in Ukraine over the past seven years is analyzed. The dynamics of inflation index in the Ukrainian economy over the past five years is given. The main factors, which affecting the sharp decline in real incomes and population impoverishment in Ukraine, are formulated. The problems of incomes inequality of Ukrainians and their negative consequences for human development are investigated. The population incomes inequitable distribution and redistribution in our country is highlighted. The interrelation of the population excessive stratification by incomes with a society criminalization and economy shadowing is substantiated. The measures to the state income policy efficiency improving with the aim of human potential preserving and developing are proposed.

Keywords

population incomes; population incomes differentiation; incomes inequality; human potential; human development; standard of living; human potential formation.

JEL classification: O150; DOI: https://doi.org/10.33987/vsed.3(67).2018.140-150

UD classification: 331.522.4:330.564.2

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