Structure of household income as a factor of financial development of municipalities

Aim. To determine the Russian specifics and interrelations in the structure of sources of income of Russian households and living standards of the population on the example of municipal formations of a number of regions of the Russian Federation (RF).

Objectives. To consider the domestic and foreign experience of singling out the interrelations of socio-economic development of territories and the structure of household income; to develop a methodology for assessing and forming a statistical base for assessing the structure of house-hold income; to calculate the interrelations of the structure of household income (labor, entre-preneurial income, social payments) and the standard of living of the population in the municipal formations of the Ural Federal District (UFD).

Methods. As a source of information we used publicly available databases on municipal entities of Rosstat, which present household incomes and social payments to the population. On this basis, adjustments and necessary calculations were made regarding the sources of household income and the formation of the database of average per capita income in municipalities of the UFD regions.

Results. The share of social payments in the total income of households in the municipalities of the UFD regions was calculated. In urban areas the share of social payments is close to the average Russian value, while in rural areas the share varies by regions. The correlation between labor and entrepreneurial incomes was determined; the southern regions of the district show an approximate parity of labor and entrepreneurial incomes of households, while in the northern municipalities three quarters of incomes fall on labor activity. As a result, the interrelationships of rural and urban settlements’ income structure with average per capita incomes are highlighted. The factors influencing this correlation for each type of municipal formations in the UFD regions were identified.

Conclusions. The study has shown that in general in the UFD municipalities the most significant component of income is the income from wage labor and social payments. In the southern regions of the UFD large cities have a great influence on the studied indicators, in the northern regions — natural resource extraction activities. Thus, the factors of financial development in the context of personal income are very diverse and depend on many conditions. The main ones include urbanization of the territory, availability of minerals, settlement system (large regional centers).

1. Kim Y., Park J., Ju A.-J. New approach to measuring income inequality. Heliyon. 2024; 10(4):e26482. DOI: 10.1016/j.heliyon.2024.e26482

2. Harvey L.A., Mierau J.O., Rockey J. Inequality in an equal society. Oxford Bulletin of Economics and Statistics. 2024;86(4):871-904. DOI: 10.1111/obes.12611

3. Rahman A., Sirojuzilam S., Lubis I., Pratomo W.A. Income inequality between provinces in Indonesia. Jurnal Ekonomi Malaysia. 2023;57(3):59-74. DOI: 10.17576/JEM-2023-5703-05

4. Ivanovski K., Awaworyi Churchill S., Inekwe J. Convergence in income inequality across Australian states and territories. Social Indicators Research. 2020;148(2):127-142. DOI: 10.1007/s11205-019-02201-0

5. O’Reilly C. Barriers to entry, entrepreneurship and income inequality within the USA. Journal of Entrepreneurship and Public Policy. 2022;11(4):332-356. DOI: 10.1108/JEPP-06-2022-0069

6. Petrova B., Ranaldi M. Determinants of income composition inequality. Comparative Politics. 2024;56(4):449-471. DOI: 10.5129/001041524X17045519842791

7. Lee J., Lee, K. Decoupling of functional and household income distribution by economic growth: New findings from analyzing the three-way growth-equity nexus. Journal of International Development. 2024;36(5):2270-2299. DOI: 10.1002/jid.3903

8. Li Q., Dong L., Zhang L. Have pensions reduced the relative poverty? Empirical analysis from China CHARLS data. Heliyon. 2023;9(12):e22711. DOI: 10.1016/j.heliyon.2023.e22711

9. Wang G., Hao Y., Ma J. Family income level, income structure, and dietary imbalance of elderly households in rural China. Foods. 2024;13(2):190. DOI: 10.3390/foods13020190

10. Bondarenko L.V. Methodology for assessing poverty in Russia in the context of rural-urban comparisons. APK: Ekonomika, upravlenie = Agro-Industrial Complex: Economics, Management. 2022;(12):74-83. (In Russ.). DOI: 10.33305/2212-74

11. Gulyaeva T.I., Takmakova E.V. Differentiation between incomes of rural and urban population in Russia. Ekonomika sel’skogo khozyaistva Rossii = Economics of Agriculture in Russia. 2021;(4):77-81. (In Russ.). DOI: 10.32651/214-77

12. Milekhin A.V., Maksimova A.S. The measurement of socio-economic differentiation of the population. Nauchnoe obozrenie. Seriya 2: Gumanitarnye nauki = Scientific Review. Series 2: Human Sciences. 2018;(1):5-14. (In Russ.). DOI: 10.26653/2076-4685-2018-1-01

13. Arzhenovskiy S.V. Statistical analysis of inequality and poverty with under-reporting incomes of Russian households. Voprosy statistiki. 2024;31(2):39-51. (In Russ.). DOI: 10.34023/2313-6383-2024-31-2-39-51

14. Ivakhnenko T.Yu., Polbin A.V., Sinelnikov-Murylev S.G. Economic complexity and income inequality in Russian regions. Voprosy ekonomiki. 2024;(5):105-127. (In Russ.). DOI: 10.32609/0042-8736-2024-5-105-127

15. Zaharchuk E.A., Pasynkov A.F. Regional balance model of financial flows through sectoral approaches system of national accounts. Ekonomika regiona = Economy of Regions. 2017;13(1):318-330. (In Russ.). DOI: 10.17059/2017-1-28