2021 1(40)21

Structural Changes of Income by Ukrainian Households in Digitalization Conditions

Olga Pizhuk
Doctor of Economic Sciences, Assistant professor
ORCID https://orcid.org/0000-0002-5802-1053
e-mail: opizhuk@gmail.com,
State Tax University, Irpin

Citation Format
Pizhuk, O. І. (2021). Structural Changes of Income by Ukrainian Households in Digitalization Conditions. Visnyk ekonomichnoi nauky Ukrainy, 1 (40), рр. 153-158. doi: https://doi.org/10.37405/1729-7206.2021.1(40).153-158


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.

digitalization, total household resources, wages, regression analysis, Markov chains.


  1. Loukas Karabarbounis, Brent Neiman. (2014). The Global Decline of the Labor Share. The Quarterly Journal of Economics, Vol. 129, Issue 1, February, рр. 61–103. doi: https://doi.org/10.1093/qje/qjt032.
  2. Bentolila Samuel & Saint-Paul Gilles. (2003). Explaining Movements in the Labor Share. The B.E. Journal of Macroeconomics, De Gruyter, vol. 3(1), pр. 1-33, October.
  3. Kizyma, T. O. (2017). Vytraty domohospodarstv Ukrainy: sutnisno-analitychnyi aspekt [Household expenditures of Ukraine: essential and analytical aspect]. Visnyk TNEU, Vol. 2, рр. 61-70 [in Ukrainian].
  4. 4.Loiko, D. M. (2018). Dynamika zmin u strukturi spozhyvannia domohospodarstv Ukrainy [Dynamics of changes in the structure of household consumption in Ukraine]. Internauka. Seriia: “Ekonomichni nauky”, 7. doi: https://doi.org/10.25313/2520-2294-2018-7-4046 [in Ukrainian].
  5. Sydorova, A. V. (2017). Dokhody ta vytraty nase­lennia: statystychne otsiniuvannia, modeliuvannia ta prohnozuvannia [Income and expenditure of the population: statistical estimation, modelling and forecasting]. Finansy, oblik, banky – Finanse, accounting, banks, Vol. 1 (22), рр. 154-162 [in Ukrainian].
  6. Tymots, M. V. (2020). Finansovi resursy domohos­podarstv yak dzherelo finansuvannia natsionalnoi ekono­miky [Financial resources of the household as a source of financing of the national economy]. Ekonomika ta upravlinnia natsionalnym hospodarstvom – Economics and management of the national economy, Issue I-II (77-78), рр. 59-68. doi: http://doi.org/10.34025/2310-8185-2020-1.77-2.78.05 [in Ukrainian].
  7. Yurii. S. I. (2008). Finansy domohospodarstv: teoretychni pidkhody do traktuvannia sutnosti Finansy Ukrainy [Household finances: theoretical approaches to the interpretation of nature]. Finansy Ukrainy Finance of Ukraine, Vol. 8, рр. 3-10 [in Ukrainian].
  8. Bila, S. O. (2019). Vplyv tekhnohlobalizmu na reformuvannia svitovoho rynku pratsi [The impact of technoglobalism on reforming the world labor market]. Suchasni naukovi pohliady na ekonomichni mekhanizmy stymuliuvannia sotsialno-ekonomichnoho rozvytku – Modern scientific views on economic mechanisms for stimulating socio-economic development: Proceedings of the International Scientific and Practical Conference (Part 1, рр. 21-24). Uzhhorod, «Helvetyka» [in Ukrainian].
  9. Yehorov, I. Yu., Ryzhkova, Yu. O. (2019). Sotsial­no-ekonomichni aspekty protsesiv tsyfrovizatsii: instru­menty doslidzhennia u krainakh OESR [Socio-economic aspects of digitization processes: research tools in OECD countries]. Pobudova informatsiinoho suspilstva: resursy i tekhnolohii – Building an information society: resources and technologies: Proceedings of the XVIII International Scientific and Practical Conference (рр. 9-13). Kyiv, UkrINTEI [in Ukrainian].
  10. Yelisieieva, L. V. (2019). Vplyv informatyzatsii ta tsyfrovizatsii ekonomiky na transformatsiiu sotsialnoho kapitalu [The impact of informatization and digitalization of the economy on the transformation of social capital]. Efektyvna ekonomika – Efficient economy, Vol 11. doi: https://doi.org/10.32702/2307-2105-2019.11.77 [in Ukrainian].
  11. Mean and median income by household type – EU-SILC and ECHP surveys. (2019). ec.europa.eu. Retrieved from https://ec.europa.eu/eurostat/databrowser­/view/ilc_di04

Full Text (.pdf)