Abstract

The article analyzes the differentiation’s level of household incomes of Ukraine by individual indicators and formulated proposals for smoothing the imbalances of socio-economic development. Existing social distinctness has a destructive influence on the formation of innovation economic, because in such conditions high-tech products can’t be created, because low wages aren’t compatible with complex technological operation. This situation іs negative influence to social-psychical state of society, deform the motivation of economic behavior, is a significant factor that constrains the economic activity of population. There are also political implications of income inequality. They are due to the fact that in a society with high income differentiation is usually a large proportion of dissatisfied and unfair income distribution creates political instability. There, reducing the stratification of the population by income is the most important task of socio-economic policy. The authors were being summarized different approaches to the definition of “income differentiation”. An attempt is made to outline and summarize the main factors contributing to inequalities in the formation and distribution of income. The level of differentiation of household incomes of Ukraine in dynamics is analyzed. In particular, the study of the level of income differentiation was carried out by size and type of settlement (urban and rural households) and by gender (men and women). It was found that the income of the Ukrainian population differs significantly not only in size but also in structure. There has also been a link between income stratification and poverty. The authors compared how Ukrainian families’ perceptions of their own wealth/poverty differ from official statistics. The fact that there have not “middle class” in Ukraine was significant. The main scientific result is to prove the connection between the differentiation of income and disparities in socio-economic development. To smooth out inequalities in income distribution, measures are proposed, grouped by areas: economic growth; active policy in the labor market; small business development; formation of an effective system of social protection of vulnerable segments of the population.

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