Primary income of households includes: Household income and its use. Household income, expenditure and consumption

Household income is the portion of GDP created in the production process and intended to satisfy the various needs of the household. These incomes should compensate for labor costs, i.e. all the physical and mental abilities of people expended in the production process.

Like an enterprise, a household in a market economy is an independent economic entity, that is, it is completely dependent on the results of its own activities. However, in modern society Due to the uneven distribution of national income, the resources of certain categories of households (families) are insufficient to maintain vitality at the required level. Therefore, the state, at the expense of the budget and extra-budgetary funds, and the entrepreneur, at the expense of profits, replenish the funds of certain categories of households (families).

As a rule, a household does not begin its life from scratch, that is, it initially possesses some previously accumulated wealth, which mainly passes to it by inheritance, and sometimes as a result of donation. This wealth can be represented in various forms, primarily in the form of real estate, cash, and in some cases securities. Subsequently, in addition to the initial resources, various types income.

First of all, there is a difference between the concepts of earned income, i.e. received as a result of the employee’s work, and received income. On the one hand, not all income earned goes to households (social security contributions). On the other hand, part of the income coming to households is not the result of labor. First of all, these are transfer payments, which include payments for social security and from accidents, unemployment and disability benefits and some other types of social assistance from the state.

In addition, to measure household income, the concepts of total, disposable, nominal and real income of the population are used.

Total income is understood as the total amount of cash and in-kind income from all sources of income, taking into account the cost of free or preferential services at the expense of social funds. Income in kind can be assessed by the average sales prices of the corresponding goods on the market.

For the population, however, the indicator of disposable income, or income remaining at the disposal of households, is more significant. They are formed from total income by deducting taxes and mandatory payments. Funds spent on consumption and accumulation.

Nominal income is the income of a household for a certain period in cash. In this case, it is possible to distinguish between accrued nominal income and actually received income. The former differ from the actual ones by the amount of income accrued in a given period, but not paid, as well as income received as a result of repaying the debt of the state and organizations for previous periods. For workers, of course, actual income is of greater importance.

Real household incomes are determined by two factors - disposable income and prices for goods and services. They can be adequately expressed by the number of consumer goods and services that can be purchased with nominal income actually received. Real incomes depend on the ratio of the growth rate of disposable income and the consumer price index over a certain period. For households, real income, along with the size of their assets and previously accumulated savings, are among the most important indicators that determine their level of well-being.

Income can be divided according to various criteria.

1. A distinction is made between permanent and temporary household income.

Permanent is income that a person expects to continue into the future. In a stable economic society, this type of income usually includes payment for work activities.

Temporary income is considered to be income that may disappear in the future, for example, income from securities due to the termination of the activities of a joint stock company. When the overall economic situation of a country is unstable, all household income becomes temporary and difficult to predict.

2. Income in cash and in kind is also distinguished.
- income in kind - mainly consists of products received in personal subsidiary plots or as payment in kind from agricultural enterprises, and consumed on the farm, as well as benefits, subsidies, and gifts in kind provided by the state and various enterprises (without taking into account accumulated savings).
- cash income is the amount of money a household has to cover its expenses; it is the predominant part of household income.

The significance of a particular type of source for a particular household is determined by its social composition. Thus, there are households where wages account for almost 100% of cash income (working married family without children). There are households where cash income is generated only from government social transfers (for example, retired spouses raising young grandchildren). The structure of household income is also influenced by the place of residence - in the city or in the countryside.

In any country with developed market relations, the majority of the population is employed in the public or private sector of the economy, and therefore it is obvious that cash income dominates over natural income.

Cash income is classified according to various criteria:

1. Depending on the method of generating income:
- - wages and additional payment for work activities;
- - income from entrepreneurial activity;
- - income from securities;
- - rent for property transferred for temporary use;
- - income from the sale of property;
- - payments from state funds;
- - insurance compensation;
- - Other income.
2. Depending on the uniformity of receipt:
- - regular (salary, rent, etc.);
- - periodic (royalties, income from securities, etc.);
- - random or one-time (gifts, income from the sale of property).
3. Depending on the reliability of receipt:
- - guaranteed (state pensions, income from government loans);
- - conditionally guaranteed (wages);
- - non-guaranteed (fees, commissions).

Household income- the total amount of cash and in-kind income from all sources of income, taking into account the cost of free or preferential services at the expense of social funds. There is an inextricable connection between household income and expenses, which manifests itself in the dependence of the structure and volume of expenses on income parameters. With a decrease in income and an increase in the risk of its reduction, the costs of savings and investments naturally decrease, since there is a certain physiological and social minimum of consumer goods and services that any household must provide for its own functioning and reproduction of human capital. Cash income of households is most often divided by sources of income (Table 4.1).

Table 4.1

Structure of monetary income of the population, %

Index	1992	1995	2000	2008	2015
Cash income - total
Including:
business income
salary
social payments
property income
Other income

Source: FSGS data.

To measure household income, the concepts of total, disposable, nominal and real income are used (Table 4.2).

Table 4.2

Income classification

Ending

Types of income		The importance of types of income
Disposable income	Income remaining at the disposal of households. They are formed from total income by deducting taxes and mandatory payments	The most important income from a household's point of view is the so-called “net income”. In total, disposable income forms part of GDP, which is spent on consumption and accumulation
Nominal income is the income of a household for a certain period in cash.	Most often highlighted accrued Andactually received nominal income. The former differ from the actual ones by the amount of income accrued in a given period, but not paid, as well as income received as a result of repaying the debt of the state and organizations for previous periods	They allow you to record differences that can be quite significant, as was the case in Russia in the 90s. XX century during a period of massive delays in the payment of wages, and the threat of which remains in modern conditions. For workers, of course, actual income is of greater importance
Real household income	Real income is determined by two factors - disposable income and prices of goods and services. For households, real income, along with the size of property and previously accumulated savings, are among the most important indicators that determine their level of well-being	They can be adequately expressed by the number of consumer goods and services that can be purchased with nominal income actually received. Real income depends on the ratio of the growth rate of disposable income and the consumer price index for a certain period

Due to the capacity and significance of the category, the concepts of minimum consumer budget(MPB) and subsistence budget(BPM). The BMP level characterizes the minimum acceptable limits for the consumption of the most important material goods and services (food, sanitation and hygiene items, medicines, housing and communal services) and is calculated in accordance with the subsistence (physiological) minimum, differentiated by social groups. Since 1997, the concept of a living wage has been used as a valuation of the consumer basket, as well as mandatory payments and fees, and in the second quarter of 2016, according to Rosstat, the cost of living amounted to 9,956 rubles. It should be noted that the cost of living varies in the regions of Russia, so in St. Petersburg in the second quarter of 2016 it was 10,356.5 rubles per capita." Thus, the BPM also takes into account the need for households to make mandatory payments.

When developing the BPM, the consumer basket is taken into account. In turn, under consumer basket implies a minimum set of food products, non-food products and services necessary to maintain human health and ensure his life.

The main importance for public sector employees and employees in the private sector of the economy is remuneration in various forms. With a nominal increase in income in the form of wages in the total volume of cash income, its share decreases. In accordance with the system of national accounts, wages include:

accrued wages at piece rates, tariff rates and official salaries;
payments for work under special conditions;
additional payments for overtime work and work at night, weekends and holidays;
bonuses and one-time incentive payments;
long service pay;
payment of annual and additional vacations;
profit-sharing income (for example, stock dividends);
travel and lifting expenses;
the cost of issued special clothing, special footwear and special food, etc.

Part of the employee’s income received in the form of wages is necessary for him directly to perform his official duties; the other, the main one, goes to maintaining households. Of fundamental importance for practice in modern Russia is the ratio of the minimum wage to the minimum subsistence level.

Accumulation expenses and cash savings. The importance of cash savings and savings is important not only for the household, since household savings are an important resource for economic development.

The intended purpose of household cash savings can be different:

creation of an insurance reserve “for a rainy day”;
accumulation of funds for the purchase of durable items (cars, apartments, etc.);
long-term savings life insurance;
creating a monetary fund for investing in various financial assets: purchasing shares and bonds, shares of mutual funds, placing funds on deposits, using loans, etc.;
investment of funds in precious metals (hoarding), real estate, currency and other assets

So, household income can be in cash and non-cash (in kind) form. The latter includes food products obtained from personal subsidiary plots for one’s own consumption.

In developed market economies, the monetary form of income naturally predominates. Cash income of households is divided according to the following sources of income:

wage;
pensions, benefits, scholarships and other social benefits;
income from business activities and personal subsidiary plots;
income from real estate and cash transactions in financial markets (money market, capital market);
tax preferences;
insurance payments, for example, voluntary health insurance policies.

Social benefits and preferences for households in last years are subject to comprehensive monetization, which contributes to a reduction in the range of income in non-monetary (in-kind) form. Households, along with the formation of demand, also perform an important socially significant function - supplying the economy with credit money.

Household expenses. Household expenses - expenses for the purchase of goods and services, mandatory payments and contributions, including taxes and fees, purchase of real estate, increase in financial assets. Depending on the functional purpose of expenses incurred by households, some economists divide them into the following main groups:

personal consumption expenses (purchasing goods and paying for services)
taxes and other obligatory payments;
cash savings and savings.

Modern statistics distinguishes four main sections in household expenses:

purchase of goods and services;
mandatory payments and contributions;
acquisition of real estate;
increase in financial assets (cash savings).

The structure of cash expenditures of the population is shown in table. 4.3.

Table 4.3

Structure of household cash expenditures, %

Index	1992	1995	2000	2008	2015
Cash expenses and savings - total. Including:
Purchasing goods and paying for services
Mandatory payments and various contributions
Purchase of real estate (non-financial assets)
Increase in financial assets, including:
increase, decrease (-) of money in the hands of the population

Source". Russia in numbers - 2016. Federal State Statistics Service.

The classification of household expenses is heterogeneous. Let us introduce a thematic classification of expenses (Table 4.4).

Exceptional and vital are consumption expenses, since they form aggregate demand and satisfy the needs of the population. Consumption expenses may include mandatory expenses, i.e. expenses without which a household cannot function. These include:

taxes and fees from individuals;
current consumption expenditure, i.e. expenses for goods and services used for a relatively short period of time;
utility and other monthly payments of the population;
capital expenditures for the consumption of non-food products used over a sufficiently long period of time;
capital expenditure associated with investing money to generate (increase) household income in the future.

Table 4.4

Classification of household expenses

Classification sign	Types of expenses	Nature of expenses
Time frame for spending funds	Short term expenses, i.e. expenses calculated for a short period (up to 1-2 months). Short-term expenses are most often recurring. Medium-term expenses (up to a year). Long term costs, i.e. expenses calculated, as a rule, for several years or more	Most often current consumption costs. Expenditures on mid-term items. Consumer and savings expenses
Functional appointment	Consumer spending, taxes, accumulations and savings	Accumulation and savings are formed from created reserves and are aimed mainly at investing funds
attachments	Current, savings and investment expenses	Consumption expenses: taxes and mandatory fees from individuals: - taxes: personal income tax, personal income tax, land tax and other taxes, - fees: state duty, fee for cleaning settlements, earmarked for the maintenance of the police and other purposes, resort fee, others; communal payments and other monthly payments; current consumption expenditures. Capital expenditure: expenditure on consumption of non-food items used over a sufficiently long period of time; expenses associated with investing funds to obtain (increase) household income in the future

http://gov.spb.ru/helper/social/prozhitochnyj-minimum/

Household income as a political-economic category represents a certain amount of money and material goods and services received in the process of performing economic functions by households and, above all, families, regarding the receipt of which private property relations arise in all spheres of social reproduction.

The subjects of these relations are family members, and indirectly they arise and develop between hired workers and capitalists when households perform certain functions (supply of personal factors of production, capital accumulation, savings), between households and the state when receiving certain types of income (transfer payments).
The main types of household income are:
1) salary;
2) income from property (interest, dividends, lease payments, rent);
3) government transfer payments (pensions, scholarships, unemployment benefits, assistance to large families, services in the field of education, healthcare, state expenses for maintaining environment, improving the ecological environment);
4) entrepreneurial income, which is mainly received by capitalist families;
5) income from other sources, primarily income from self-employment.
The largest share of household income that is based on private labor property is wages.
In second place in the income structure of most households in some developed countries is income from property (from securities, deposits of labor savings in savings banks, savings in pension funds, etc.).
In France in the early 90s, per capita (and therefore, per family member) averaged about 300 thousand francs. property, and the total property of all French families amounted to almost 16 trillion francs. In Ukraine, the volume of personal property per family during this period amounted to 2.8 thousand rubles in prices of that time.
In Ukraine, household income should be divided into cash and natural (obtained as a result of labor on household plots and summer cottages). Cash income also includes payment of labor in agricultural enterprises, cooperatives, income from the sale of agricultural products on the market, provision of services, etc. In 1999, the index of real monetary income of the population compared to 1991 was 28%; in 2002, the average salary in Ukraine was about 60 dollars, in Russia - more than 110 dollars.
Household expenditures as a political economic category are a set of funds and material goods that are spent in the process of performing economic functions by them (primarily families), regarding the expenditure of which between family members, the family as a whole, on the one hand, various branches state authorities, financial and credit institutions and other entities, on the other hand, form relations between private and non-private types of property in certain spheres of social reproduction.
The main items of household expenditure are:
1) taxes;
2) food expenses;
3) expenses for clothes and shoes;
4) costs of paying for the apartment;
5) transportation costs;
6) expenses for utilities (electricity, water, gas, telephone);
7) expenses for obtaining education;
8) expenses for recreation, travel and entertainment;
9) contributions to social insurance funds;
10) savings;
11) voluntary donations and contributions to public organizations;
12) acquisition of securities;
13) payment of loan debt;
14) other expenses.
The share of individual household expenditures depends on the country's level of development. Thus, in most developed countries of the world, food costs amount to less than 25% of family income, while in Ukraine in different categories of families of hired workers, but in the vast majority of them - up to 80% of total income. In 1985-1990 Families of workers and employees in Ukraine spent 30.2-30.5% of the budget on food. In EU countries, as early as 1987, spending on leisure and entertainment exceeded spending on food.
In the model of the circulation of resources, products and income, on the one hand, households form to a large extent the flow of modern labor resources (educated and skilled labor; partly their training is carried out by the companies themselves and the state), which enter the labor market. Consequently, labor ends up in factories where goods and services are produced, which in turn first go to the consumer market, where households buy the goods and services they need.
On the other hand, household consumption expenditures are directed to the market for consumer goods and services that are produced by enterprises. The proceeds received from their sale go to enterprises where new batches of goods are created and new services are provided. In this case, production costs are formed, but prices for the use of land, labor, means of production and entrepreneurial abilities are established in the resource market. Prices for goods and services are set in the consumer market, with households being the subjects of demand, and enterprises being the subjects of supply (the opposite situation occurs in the first case).

Each of the factors involved in production creates a share in the added value (net product) and receives an appropriate reward - factor income . The added value is entirely distributed among factor incomes and is equal to their sum. The income of the labor factor is called wages, factor earth – rent, factor capital – percent, entrepreneurial ability – profit. The formation of each factor income has its own specifics due to the specifics of the corresponding factor of production and the factor market. This issue will be discussed in detail in topic 8.

In general, from the point of view of its economic nature income economic agents are divided into primary and secondary income.

Primary income(primary incomes)- These are factor incomes directly “earned” by the owners of the used factors of production. They are the result of primary distribution (distribution) added value created by factors of production. Thus, the formation of primary income is a direct result of the productive activities of economic agents.

All primary (factor) incomes are divided - from the point of view of the degree of personal activity of their recipients - into two groups:

· income from participation in the production process(“labor” in the broad sense), i.e. income from personal economic activity, according to “personal” (inseparable from a person) factors of production. These are wages and business profit (including both normal and economic profit);

· property income. These are the remaining factor incomes, i.e. “non-labor” income of the owners of “natural” factors of production - natural rent and interest on capital. Rent for the rental of real estate is considered in this context as a combination of rental income and interest on capital.

Secondary income are the result of subsequent redistribution, those. secondary distribution of primary/factor income. These are taxes ( taxes), public and private subsidies, interest on government debt securities, dividends on shares and income from various types of unproductive transactions. Most of these payments are covered by the concept of “transfers” ( transfers). The corresponding operations are considered unproductive, while being expedient and necessary from the point of view of financing certain types of activities.

Only the primary income of economic agents reflects their productive activities (creation of added value).

The final result of redistribution (secondary distribution of factor income) is education personal income , i.e. household income.

Statistics use the term “population,” while sociologists talk about families and “social strata.” Economists use the term “households” when talking about personal income and consumption.

Household (household)- one or more people who have joint property, a common budget and jointly make economic decisions, as well as collectively consuming certain types of goods and services. Households are among the economic agents of the modern economy (along with firms, households, government, financial and non-profit organizations). In the modern economy, households are the owners of economic resources, the main buyers (consumers) of consumer goods and services, as well as the main “savers” (lenders).

In addition, some households are also engaged in production activities in the form of so-called. unincorporated businesses. For example: personal subsidiary plots; enterprises of persons carrying out individual entrepreneurial activities without forming a legal entity. Goods and services are produced by households both for their own consumption and for sale. The productive activities of a household cannot be economically separated from the household itself.

Households also include the so-called institutional population, i.e. persons staying for a long time in hospitals, prisons, etc.

The economic (and partly social) position of each household is determined by the fact that it owns property and receives income.

Property– “reserves” of real (non-financial) durable goods (for more than a year). These are material factors of production, intangible assets (in total - real investment assets), as well as durable consumer goods. Property includes any source of legal unearned income.

A broader term is economic assets – objects that are owned by households and from the possession of which they derive economic benefits. These include, in particular, various types of financial assets. The value of the assets forms capital household. The difference between the value of assets owned by a household (i.e. capital) and the value of its liabilities is denoted by the term generally accepted in economics net assets (net worth).

So, personal income – household income; the amount of money received by them over a certain period of time and spent to purchase goods and services for personal consumption or for savings.

It is obvious that personal income consists of various types of primary (factor) and secondary income: wages, profits, rental payments, income from bank deposits and securities, pensions, various types of social benefits, sponsorship, insurance payments, lottery winnings and etc. In general, we can say that personal income is formed from three main sources: wages, income from property (rent, interest, dividends) and social (transfer) payments.

According to statistics, in the structure of sources of personal income in economically developed countries, the first place is occupied by the wages of employed persons - it accounts for about two-thirds of personal income of households.

Personal disposable income– personal income of households after paying all taxes, at the disposal of households and available for consumption and savings.

It is important to understand that the standard of living is determined not only and not so much by the amount of money a family has, but by the number of goods and services that it can purchase. Therefore, a distinction is made between the concepts of nominal and real income.

Nominal income- this is the amount of money actually received by a family household over a certain time.

Real income– this is income, the value of which is given taking into account changes in individual taxes, as well as changes in prices for consumer goods and services.

To illustrate the difference between nominal and real income, consider the following example. It is known that for the period from 1980–2002. The average income of a working person in Russia increased from 150 to 1500 rubles, i.e. 10 times. Has the standard of living of people increased?

To give an approximate answer to the question posed, let us remember that during the same period the price of a loaf of rye bread increased from 20 kopecks to 5 rubles. It is easy to calculate that if in the 80s a person could buy 750 loaves of bread monthly with his salary, now, receiving 10 times the salary, he will be able to buy only 300 loaves. Thus, the amount of 1,500 rubles received today is equivalent to 60 rubles received in the 80s. To summarize, the following conclusions can be drawn:

1. 1,500 rubles is a nominal income, and 60 rubles is the modern real value of income in 1980 prices. It was found as the product of the amount of bread that can be purchased today for 1,500 rubles and its price in the 80s;

2. The standard of living of the average Russian today has dropped by 60% compared to the level of the 80s. This value can be calculated in two equivalent ways. Either by a change in the potential volume of bread consumption, or by a change in real income .

It should only be noted that in general economic practice, to assess changes in the standard of living (real income), a general indicator of changes in prices for goods and services consumed by a typical family household is used, the so-called consumer price index, which will be discussed in more detail in topic 12.

Personal income of households directly determines the standard of living of people.

Under standard of living understand the extent to which the population is provided with the material and spiritual goods necessary for life, as well as the degree to which society’s needs for these goods are met. The latter largely determines the quality of life.

In economic analysis, the standard of living is usually determined by the amount of goods and services consumed, including food, basic necessities, clothing, household appliances, housing, access to education, recreation, etc. The following indicators can be used to assess the standard of living:

Real value of gross domestic product per capita;

The real value of gross national income per capita;

Consumption of basic products per capita or per family;

The structure of the set of products consumed by a typical family household.

Most often, the concept of “consumption basket” is used to determine the standard of living.

Consumer basket is a set of goods and services consumed by the average (typical) family household over a certain period of time.

This set of goods and services determines the standard of living of an individual or family, which can be considered average (typical) for the country’s population.

To assess the standard of living based on the concept of a consumer basket, a kind of scale can be introduced, which is based on physiological, minimum and rational levels of consumption.

Physiological level of consumption determines the set of goods and services, the consumption of which provides the individual with the satisfaction of his physiological needs. If the volume of consumption is below this, then the person is doomed to death.

Minimum consumption level defines the minimum acceptable set of goods and services that society considers acceptable to support the life of an individual. Based on it, it is determined living wage (poverty line) – assessment of the total cost of the minimum level of consumption. It is calculated based on the standards of the physiological level of consumption and the minimum standards of consumption of intangible (spiritual) benefits. If a person or family consumes less goods, then he is usually classified as poor.

Rational level of consumption defines a set of goods and services, the consumption of which over a certain period of time is most favorable for a person.

For public authorities, the main goal of their activities in the field of social policy, in particular, should be to improve the standard of living of the population of a city, region or country, i.e. bringing the actual level of consumption of the majority of the region's population as close as possible to its rational value.

The quality of life of a population is determined not so much by the quantity of goods and services consumed, but by the degree to which a particular individual’s needs for these goods are met, as well as the ease with which an individual can access them. The factors that determine the quality of life include: the length of the working week, the availability and duration of paid leave, other conditions and safety of human labor, the level of education and physical development of the nation, the level of development of healthcare, the state of the environment (ecological situation), the degree of respect for human rights in country (personal freedom, security of citizens) and much more. Quantifying the quality of life of the population is still the subject of lively debate among economists due to the complexity of this task. To solve it, complex integral sociological assessments are required.

The level and quality of life of the population change over time, and at the same time the standards for their assessment must change. In addition, it is worth noting the fact that the criteria for assessing this indicator are different for different countries. So the standard of living, which is average in Russia, may turn out to be low for the developed countries of Europe and America.

The distribution of property and income between households is characterized by inequality (stratification).

At all social inequality– a complex concept that, among other things, has an economic aspect. Economically, social inequality manifests itself in wealth inequality And in the differentiation of personal income of households and population groups.

The degree of differentiation of personal income (the degree of inequality in the distribution of income between households) is usually measured by the following main indicators:

· coefficients of decile and quintile distribution of personal income;

· Lorentz and Gini coefficients calculated on the basis of the Lorenz curve.

Decile distribution coefficient shows the ratio of the average per capita income of the 10% richest households (i.e. those with the highest incomes) and the average per capita income of the 10% least affluent households. The higher the coefficient, the higher the degree of differentiation of personal income in society. The critical level is considered to be 9.

Respectively quintile distribution coefficient – the ratio of the average per capita income of the 20% richest households and the average per capita income of the 20% of households with the lowest incomes.

Lorenz curve– a graph used to determine the measure of inequality in the distribution of income (in the general case of any other good) both within a social group and in society as a whole.

The Lorenz curve is constructed by plotting along the ordinate axis the cumulative share of income received (on an accrual basis), and along the abscissa axis the cumulative share of its recipients in the entire population of the group under consideration, starting with the recipient of the lowest income. A point on the Lorenz curve shows the percentage of people earning a given percentage of income.

The Lorenz curve turns into a straight line shown on the graph, passing at an angle when all income recipients receive equal shares of it, i.e. 10% of the population receives 10% of the income, 20% receives 20% of the income, etc. The degree of deviation of the curve obtained from empirical data from the straight line reflecting absolute equality indicates the degree of uneven distribution of income within the group under consideration (Fig. 10).

Quantitatively, the measure of social stratification of society as a whole or any other group of people is characterized by the so-called Gini coefficient . It is denoted by the English letter G. It is found using the Lorenz curve and represents the ratio of the area of the figure between this curve and the line of absolute social equality to the total area of the triangle under the line of absolute social equality. From Figure 2 it can be seen that it can be found using the formula

where is the area of the figure between the Lorenz curve and the line of absolute social equality, and is the area of the triangle under the line of absolute social equality.

The Gini coefficient is a relative (dimensionless) quantity, the value of which ranges from zero (absolute equality) to one (absolute inequality).

Indeed, for a society (group) with the same income of each member, and, therefore, . For a society in which all the income goes to only one member (absolute social inequality) and the Gini coefficient.

In the USA the Gini coefficient is 0.3, in Western Europe it is 0.2. The critical value is considered to be 0.5.

Rice. 10. Lorenz curve

The following can be distinguished main factors differentiation of personal income:

· inequality of natural abilities of people;

· unequal “starting conditions” of people’s childhood and youth:

· unequal access to education:

· barriers to regional and international migration of factors of production such as labor and capital.

In modern Russia, statistics on the distribution of personal income are disappointing. The decile income distribution coefficient is 15.3 (14.8 in 2005) - one of the highest in the world. In the raw materials sector of the domestic economy, 50% of workers have incomes that exceed the subsistence level by 20 times, and 30% of those employed in the banking sector – by 26 times (data for 2007). At the same time, 20% of Russians have incomes below the subsistence level.

The state plays a major role in the redistribution of factor income. Many secondary incomes (pensions, various types of social benefits, some insurance payments) are paid from the budget system and extra-budgetary funds, which in turn are financed mostly by taxes and fees (which will be discussed in detail in topic 14). Thus, taxation of factor incomes with subsequent “social” payments from the budget system has a pronounced redistribution effect, acting towards reducing the degree of income differentiation, “smoothing out” inequality. This state policy is called social policy , and its elements are the system social “compensators” . As a result of social policy, the distribution of personal income is partially equalized.

CONCLUSION

Let us briefly summarize what has been said.

The distribution of income in society is Firstly the result of demand for productive resources (factors of production) and their supply. Factor incomes are formed in factor markets and then partially redistributed.

In economic theory, rent is understood conceptually. Two related concepts are used - “natural rent” and “pure economic rent”, covered by the general concept of rental income:

· rent in the broad sense – as rent in the market for land and natural resources. This is rent as a factor income of landowners, called natural (land) rent;

· rent in the narrowest, deepest, conceptual sense - as part of any factor income that can be formed under certain conditions. This rent is called "pure economic" or "inframarginal". Pure economic rent can be generated by any factor of production (for example, specific types of capital, unique specialists in the labor market), the market supply of which is price inelastic over long-term time intervals.

The production of productive resources and the costs of increasing their stock are investments, or the creation of capital. One of the most important forms of capital is human capital, i.e. productive capabilities embodied in specific people. The production of human capital is of great importance because in a post-industrial market economy, earnings are primarily made through the provision of human resource services.

The amount and nature of investment that will be made in any society depends on established and generally accepted property rights, since property rights determine what people can expect from their actions.

A low rate of time preference makes investment more attractive than consumption. Greater uncertainty about the future return on an investment will cause a person to discount future income at a higher interest rate and result in less investment.

The demand for productive services of any kind is not completely inelastic. At lower prices for resources, there will be a demand for more of them, and at higher prices, less will be demanded, since there are substitutes for productive services of any kind.

Potential consumers of productive services make decisions about the size of their demand by comparing the marginal benefits and marginal costs of alternative ways of achieving their goals.

The demand for productive services, and hence their prices, depends in part on the demand for the goods they produce. But the prices of productive services also have an inverse effect on the costs and prices of production of the corresponding goods, and thereby on the quantity of goods that will be produced and sold.

Sellers of productive services do not compete with buyers of those services. Sellers compete with other sellers, buyers compete with other buyers. The desire for higher profits leads to attempts to suppress competition, since what the seller can buy and what the buyer must pay depends on the alternatives offered by competitors.

Primary (factor) incomes are partially redistributed, generating secondary incomes. The state plays the most active role in this redistribution process. Primary and secondary incomes of economic agents ultimately add up to personal income, i.e. household income.

Literature

1. Basalaeva E. The problem of forming competitive agriculture // Questions of Economics. 2006. No. 9.

2. Veklich O. Environmental rent: essence, varieties, forms // Questions of Economics. 2006. No. 11.

3. Gimpelson V., Kapelyushnikov R. Precarious employment and the Russian labor market // Questions of Economics. 2006. No. 1.

4. Dvoretskaya A. Capital Market Resources as a Source of Financing for the Real Sector of the Economy // Questions of Economics. 2007. No. 11.

5. Goltsblat A.A. Motives for the speedy privatization of land // Law and Economics No. 3, 2003.

6. Emoninova L. Wage labor in France: on the way to post-industrial society. – M., 1991.

7. Serova E.V. Agricultural Economics: Textbook. – M., 2003.

Household income- this is the part of GDP created in the production process and intended to satisfy the various needs of the household. These incomes should compensate for labor costs, i.e. all the physical and mental abilities of people expended in the production process.

Like an enterprise, a household in a market economy is an independent economic entity, that is, it is completely dependent on the results of its own activities. However, in modern society, due to the uneven distribution of national income, the resources of certain categories of households (families) are insufficient to maintain vitality at the required level. Therefore, the state, at the expense of the budget and extra-budgetary funds, and the entrepreneur, at the expense of profits, replenish the funds of certain categories of households (families).

As a rule, a household does not begin its life from scratch, that is, it initially possesses some previously accumulated wealth, which mainly passes to it by inheritance, and sometimes as a result of donation. This wealth can come in various forms, primarily in the form of real estate, cash, and in some cases, securities. Subsequently, in addition to the initial resources, various types of income appear.

First of all, the concepts differ earned income, i.e. received as a result of the employee’s labor activity, and income received. On the one hand, not all income earned goes to households (social security contributions). On the other hand, part of the income coming to households is not the result of labor. First of all, these are transfer payments, which include payments for social security and accidents, unemployment and disability benefits and some other types of state social assistance.

In addition, to measure household income, the concepts of total, disposable, nominal and real income of the population are used.

Under cumulative Income is understood as the total amount of cash and in-kind income from all sources of income, taking into account the cost of free or preferential services at the expense of social funds. Income in kind can be assessed by the average sales prices of the corresponding goods on the market.

For the population, however, the indicator is more significant disposable income, or income remaining at the disposal of households. They are formed from total income by deducting taxes and mandatory payments. Funds spent on consumption and accumulation.

Nominal income- household income for a certain period in cash. In this case, it is possible to distinguish between accrued nominal income and actually received income. The former differ from the actual ones by the amount of income accrued in a given period, but not paid, as well as income received as a result of repaying the debt of the state and organizations for previous periods. For workers, of course, actual income is of greater importance.

Real income households are determined by two factors - disposable income and prices for goods and services. They can be adequately expressed by the number of consumer goods and services that can be purchased with nominal income actually received. Real incomes depend on the ratio of the growth rate of disposable income and the consumer price index over a certain period. For households, real income, along with the size of their assets and previously accumulated savings, are among the most important indicators that determine their level of well-being.

Income can be divided according to various criteria.

1. Distinguish permanent and temporary income households.

Permanent is income that a person expects to continue into the future. In a stable economic society, this type of income usually includes payment for work activities.

2. Income in cash and in kind is also distinguished.

N in-kind income- mainly consist of products received on personal subsidiary plots or as payment in kind from agricultural enterprises, and consumed on the farm, as well as benefits, subsidies, and gifts in kind provided by the state and various enterprises (without taking into account accumulated savings).

- cash income- this is the amount of money a household has to cover its expenses; it is the predominant part of household income.

Cash income is classified according to various criteria:

1. Depending on the method of generating income:

Salary and additional payment for work activities;

Income from business activities;

Income from securities;

Rent for property transferred for temporary use;

Income from the sale of property;

Payments from government funds;

Insurance compensation;

Other income.

2. Depending on the uniformity of receipt:

Regular (salary, rent, etc.);

Random or one-time (gifts, income from the sale of property).

3. Depending on the reliability of receipt:

Guaranteed (state pensions, income from government loans);

Conditionally guaranteed (wages);

Non-guaranteed (fees, commissions).

The main importance for public sector workers and employees in the private sector of the economy is remuneration in various forms. In accordance with the system of national accounts, this includes: (1) accrued wages based on piece rates, official salaries; (2) payments for work under special conditions; (3) additional payments for overtime work and work at night, on weekends and holidays; (4) bonuses and one-time incentive payments; (5) long service pay; (6) payment of annual and additional vacations; (7) profit-sharing income (eg, stock dividends); (8) travel and lifting expenses; (9) the cost of issued special clothing, special footwear and special food, etc. Part of the employee’s income received in the form of remuneration is necessary for him directly to perform his official duties; the other, which is the main one, goes to the maintenance of the household, including family members.

Wage Today it is the main way of generating income for members of many households. According to Article 129 Labor Code RF, wage - This is remuneration for work depending on the qualifications of the employee, complexity, quantity, quality and conditions of the work performed, as well as compensation and incentive payments.

Remuneration systems for public sector employees (state and municipal institutions) are established by: collective agreements, agreements, local regulations in accordance with federal laws and other regulatory legal acts of the Russian Federation; laws and other regulatory legal acts of the constituent entities of the Russian Federation and regulatory legal acts of local government bodies. Resolution of August 5, 2008 No. 583 “On the introduction of new systems of remuneration for employees of federal budgetary institutions and federal government bodies, .....”.

The majority of workers (more than 60%) work in the non-state sector of the economy, where the amount of wages (as well as the amount of bonuses, additional payments, allowances, etc.) is entirely determined by the management of the enterprise based on the size of the wage fund created at the enterprise, the quality, significance and intensity of work activity of specific employees.

In this case, there is state regulation of wages, which is carried out with the help of state guarantees for wages provided for in Art. 130 Labor Code of the Russian Federation:

· the minimum wage in the Russian Federation (minimum wage);

· measures to ensure an increase in the level of real wages;

· limiting the list of grounds and amounts of deductions from wages by order of the employer, as well as the amount of taxation of income from wages;

· limitation of remuneration in kind;

· ensuring that the employee receives wages in the event of termination of the employer’s activities and its insolvency in accordance with federal laws;

· state supervision and control over the full and timely payment of wages and the implementation of state guarantees for wages;

· responsibility of employers for violation of the requirements established by labor legislation and other regulatory legal acts containing labor law norms, collective agreements, and agreements;

· timing and order of payment of wages.

Minimum wage (minimum wage)- this is the monthly salary guaranteed by federal law for the work of an unskilled worker who has fully worked the standard working hours while performing simple work under normal working conditions. Those. in accordance with Article 133 of the Labor Code of the Russian Federation, the monthly salary of an employee who has fully worked the standard working hours during this period and fulfilled labor standards (labor duties) cannot be lower than the minimum wage.

Federal Law No. 82 of June 19, 2000 “On the minimum wage” stated that the minimum wage is used exclusively to regulate wages throughout the state, and the Government of the Russian Federation must regularly index it in order to avoid its depreciation, as well as for determining the amount of benefits for temporary disability. In accordance with the legislation of the Russian Federation, the minimum wage is also used to determine the amount of taxes, fees, fines and other payments, which are calculated depending on the minimum wage.

The minimum wage, established on January 1, 2009, includes not only the tariff rate (salary), but also additional payments, allowances, bonuses, payments according to the regional coefficient, etc., i.e. includes all types of payments paid to the employee in accordance with the employment contract.

Due to the fact that the minimum wage is now not the minimum tariff rate, but the employee’s entire monthly salary (including compensation and incentive payments), the employee’s tariff rate (salary) may be lower than the minimum wage.

Payment of wages below the minimum wage may entail administrative liability (Article 5.27 of the Code Russian Federation on administrative offenses):

For the head of an organization - a fine from 1,000 to 5,000 rubles;

For an individual entrepreneur - a fine from 1,000 to 5,000 rubles. or suspension of activities by court decision for up to 90 days;

For an organization - a fine of 30,000 to 50,000 rubles. or suspension of activities by court decision for up to 90 days.

The minimum wage cannot be lower than the subsistence level of an able-bodied person.

The cost of living is determined quarterly by socio-demographic groups of the population on the basis of the consumer basket and executive branch statistics on the level of consumer prices for food, non-food goods and services and expenses for mandatory payments and fees.

Setting a living wage

1. The subsistence minimum for the Russian Federation as a whole is intended for:

Assessments of the standard of living of the population of the Russian Federation in the development and implementation of social policy and federal social programs;

Justifications for the minimum wage and minimum old-age pension established at the federal level, as well as for determining the amount of scholarships, benefits and other social benefits;

Formation of the federal budget.

2. The living wage in the constituent entities of the Russian Federation is intended for:

Assessment of the standard of living of the population of the corresponding constituent entity of the Russian Federation in the development and implementation of regional social programs;

Providing the necessary state social assistance to low-income citizens;

Formation of budgets of constituent entities of the Russian Federation.

Consumer basket- this is the minimum set of food, clothing, medicine, basic necessities and services that ensures the physical survival of a person (the cost of survival of the average citizen at current prices). It is formed according to the main items of expenditure of a person or family: food; clothes, underwear, shoes; medicines, sanitary and hygiene items; furniture, cultural, household and household items; housing and utilities; cultural and educational events and recreation; household services, communications transport; keeping children in preschool institutions.

The second place in importance is occupied by - income from business activities, which include income of household (family) members from commercial activities that are carried out without forming a legal entity. This activity includes three groups of activities:

1. private unorganized trade;

2. cottage and handicraft production;

3. provision of private services.

Entrepreneurship in the field of self-employment and private practice is currently extremely diverse and provides the population with almost all types of household and socio-cultural services (construction and renovation of apartments - 26%, sale of dogs and cats - 24%, tutoring and training - 16% , repair of household appliances - 6%, car repairs - 5.5%, medical services - 4.7%, veterinary care - 3%, services of housekeepers, nannies, tutors - 2.4%, astrology, fortune telling - 2%, translation from foreign languages - 1.5%, computer typing - 1.5%, other - 7.6%).

A significant share of household (family) income comes from pensions and various benefits.

It should be noted that insurance and social revenues are heterogeneous. We can highlight those that depend directly or indirectly on the labor contribution of employees. First of all, this applies to the majority of pension payments, which can be considered as labor pensions . However, most of the income discussed in this section is purely “social” in nature, since it is paid by the state as a means of maintaining a minimum standard of living for the population. There are payments that are “intermediate” in nature between purely gratuitous and related to the labor contribution of their recipients. We are talking about social benefits that are provided to citizens on the condition that they acquire the skills necessary for subsequent work. Thus, most unemployment benefits are paid for a limited time and at decreasing rates, with the goal of stimulating the unemployed to study a particular specialty. Non-state forms of social assistance to the population are also developing.