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Structural Changes of Income by Ukrainian Households in Digitalization Conditions

Journal: Herald of the Economic Sciences of Ukraine (Vol.40, No. 1)

Publication Date:

Authors : ;

Page : 153-158

Keywords : digitalization; total household resources; wages; regression analysis; Markov chains;

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Abstract

In the framework of this research, we assumed that digitalization is one of the factors influencing the growth of welfare of the population of Ukraine, the main criterion of which is the total household income. To confirm this hypothesis, we used general and unique methods of cognition, in particular comparative analysis and synthesis – in studying the dynamics of growth of total household income in Ukraine compared to other countries and determining the level of access to the Internet; regression analysis – in establishing the relationship between the determinants and the total income of households in Ukraine, etc. Using regression analysis, based on statistics for the period 2001-2019 on the total income of the population of Ukraine (Y) and the percentage of households with Internet connection (variable x), we hypothesized that digitalization has an impact on the level of total household income by detecting the dependence of Y on x. The parameters were estimated using the least-squares method at the specification stage, and even exponential regression was chosen. The statistical significance of the regression equation was verified using the coefficient of determination and Fisher's test. It is established that in the studied situation, the general variability of the total average monthly income of households in Ukraine is explained by the change x, i.e., the share of households with access to the Internet. This hypothesis also confirmed by constructing a regression equation based on spatial data on household income in several countries and the percentage of their connection to the Internet as of 2019. The theory of discrete Markov processes, the so-called Markov chain theory, was chosen as a mathematical tool for forecasting structural changes in the total income of Ukrainian households in the conditions of digitalization, which allows considering the change in the structure of a given population as a stochastic (random) process.

Last modified: 2021-08-11 18:44:01