Rural population income in Ukraine: current trends and specifics of relationship with social capital
2022
Zaiats, Tetiana | Dyakonenko, Oksana | Kraievska, Halyna | Holovko, Liliya | Kotenko, Tetiana
The paper examines the current trends in income generation of rural households in Ukraine and specifics of its relationship with social capital. The significance of the research topic stems from the need to use social capital as a factor in increasing the profitability of rural households in conditions of high deprivation poverty and low living standards in rural areas. Social capital is a resource, the capitalization of which forms the preconditions for increasing the profitability of households by converting social capital into other types of capital and minimizing transaction costs. The purpose of the study is to assess current trends in income generation of rural households in Ukraine and to define specifics of the relationship between income and social capital of villagers’ families. The study uses statistical methods, general scientific methods of analysis and synthesis, dialectics and abstract-logical methods, the method of comparison. The methods of studying the relationship between social capital and household income are based on understanding the interaction of these economic categories in development. It is established that the vast majority of rural households in Ukraine are not involved in social networks that have a high potential for income growth, and the level and structure of their income are a barrier to the formation of social capital. The income and social capital of rural UTCs are accumulated mainly by the local elite, which is the reason for the spread of fragmented social capital, which is formed on the basis of closed networks.
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