THE PROBLEM OF POVERTY OF THE WORKING POPULATION IN UKRAINE

Abstract

The problem of the low income working population – so called “the working poor” - not only increases the social tension in the country, but also slows down the development of the economy as a whole. It is stated that the lack of the uniform methodology and methods of measuring poverty on the basis of income does not contribute to giving this phenomenon a fairly accurate assessment. In the article, the authors have pointed to the main economic problems that arise as a result of the existence of a significant proportion of the working poor among the economically active population of the country. The authors have identified the factors and the respective risks of poverty spreading among the working population of Ukraine. It is asserted that the causes of poverty should be studied in the context of the specifics of the country's economic development: the peculiarities of the passage of economic cycles on the waves of recession and crisis and the quality of economic growth on a wave of recovery. It is important to correctly identify the poverty profile in order to develop an effective policy to reduce it. To determine the poverty profile, the authors have analyzed the structure of the low income categories of population. Based on the analysis of possible factors of the “working poor” category of population falling into the category of the “poor”, it has been found that the greatest risk of falling into the low income category exists for the members of households that are located in small cities, urban-type settlements, or villages, having the education not above secondary, living in incomplete families with under-age children and those with poor health. Also, the high risk of getting into the “poor” category is inherent in unskilled workforce. Particular attention should be paid to the gender peculiarities of the working poor. Due to these factors of marginalisation, women fall into the risk zone more often. In addition, the probability of shifting into the risk zone increases for persons engaged in such activities as education, culture, health care, provision of social services. It is these kinds of activities that employ more women than men. It has also been proved that the availability of work for the employable population in Ukraine is not a guarantee of protection against poverty.