Ukraine : Poverty Assessment, Poverty and Inequality in a Growing Economy

This Poverty report is aimed at improving the understanding of poverty in Ukraine, and providing linkages between growth, the evolution of economic sectors, and poverty. The main findings can be summed up as follows: An absolute poverty line and a revised consumption aggregate -- jointly developed with Ukraine experts -- indicate that around 19 percent of the population lived in poverty by 2003. While in 1999 Ukraine had a poverty incidence higher than Poland, Russia, Lithuania, or Bulgaria, by 2003 it was the lowest compared with these countries. The overall improvement, however, has been paralleled by an increasing poverty gap between rural and urban households, reflecting the fast but unbalanced economic growth: The growth experience has not changed the rather stagnant level of employment. The improvement in labor markets are associated to gains in productivity and efficiency with resulting wage gains. There is also increased differentiation within workers since the fraction of underemployment has also increased, reflecting partly the subsistence agriculture, and precarious labor markets in some small towns. The combined effects of higher productivity but lower employment in commercial farms left real incomes in agriculture lagging behind other sectors. Rural areas had a slower reduction in poverty due to the combined effect of weather shocks, and restructuring in agriculture. The government has played a critical role in reducing poverty by increasing substantially the social insurance transfers. Other government transfers have become better targeted but still have very limited coverage. The reduction of poverty, however, provides a window of opportunity to reform the safety net system in order to effectively target the poor.

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Bibliographic Details
Main Author: World Bank
Format: Other Poverty Study biblioteca
Language:English
en_US
Published: Washington, DC 2005-12
Subjects:ABSOLUTE POVERTY, ABSOLUTE POVERTY LINE, ACCESS TO MARKETS, ACTIVE LABOR, ACTIVE LABOR MARKET, ACTIVE LABOR MARKET PROGRAMS, ADULT POPULATION, AGE GROUP, AGE GROUPS, AGGREGATE EMPLOYMENT, AGRICULTURAL ACTIVITIES, AGRICULTURAL COOPERATIVES, AGRICULTURAL DEVELOPMENT, AGRICULTURAL EMPLOYMENT, AGRICULTURAL INCOMES, AGRICULTURAL LAND, AGRICULTURAL OUTPUT, AGRICULTURAL PRODUCT, AGRICULTURAL WAGES, AGRICULTURAL WORKERS, AGRICULTURAL WORKFORCE, AVERAGE INCOME, BASIC NEEDS, BENEFICIARY HOUSEHOLDS, BENEFICIARY POPULATION, BIG CITIES, CALORIES PER DAY, CAPITAL INVESTMENT, CARDIOVASCULAR DISEASES, COMMERCIAL FARMS, COMPANY TOWNS, CONSUMER PRICE INDEX, CONSUMPTION AGGREGATE, DECLINING UNEMPLOYMENT, DEVELOPMENT INDICATORS, DOMESTIC MARKET, DROUGHT, DRUGS, EARNING, ECONOMIC ACTIVITY, ECONOMIC GROWTH, ECONOMIC OPPORTUNITIES, ECONOMICS, EDUCATION ACTIVITIES, EDUCATION LEVEL, EDUCATION POVERTY, ELDERLY, EMPLOYMENT COMPOSITION, EMPLOYMENT DYNAMICS, EMPLOYMENT GROWTH, EMPLOYMENT IN AGRICULTURE, EMPLOYMENT LOSSES, ENERGY CONSUMPTION, ENTREPRENEURIAL ACTIVITIES, EXCHANGE RATE, EXCHANGE RATES, FAMILY BENEFITS, FARM LABOR, FIRM LEVEL, FIRM SIZE, FOOD BASKET, GINI COEFFICIENT, GROSS DOMESTIC PRODUCT, HOUSEHOLD BUDGET, HOUSEHOLD CONSUMPTION, HOUSEHOLD HEAD, HOUSEHOLD HEADS, HOUSEHOLD INCOME, HOUSEHOLD INCOMES, HOUSEHOLD PLOTS, HOUSEHOLD STRUCTURE, HOUSEHOLDS WITH PENSIONERS, HOUSING, HOUSING SUBSIDIES, HUMAN DEVELOPMENT, INCIDENCE OF POVERTY, INCOME, INCOME DISTRIBUTION, INCOME GROUPS, INDUSTRIAL SECTOR, INEQUALITY, INEQUALITY MEASURES, INFANT, INFANT MORTALITY, INFANT MORTALITY RATE, INSURANCE, INTERNATIONAL LABOR ORGANIZATION, JOB CREATION, JOB DESTRUCTION, JOB DESTRUCTION RATES, JOB MARKET, JOB TURNOVER, JOBS, LABOR FORCE, LABOR FORCE PARTICIPATION, LABOR MARKET, LABOR MARKET PERFORMANCE, LABOR MARKET PROGRAMS, LABOR MARKETS, LABOR PRODUCTIVITY GROWTH, LACK OF CAPACITY, LAND DISTRIBUTION, LAND LEASING, LAND REFORM, LARGE CITIES, LIVING CONDITIONS, LIVING STANDARDS, LONG-TERM UNEMPLOYMENT, LOW LABOR PRODUCTIVITY, LOW WAGES, MACROECONOMIC STABILITY, MIGRATION, MILLENNIUM DEVELOPMENT GOAL, MINIMUM WAGE, MODERNIZATION, NET EMPLOYMENT, NON-POOR HOUSEHOLDS, OCCUPATION, OUTPUT GROWTH, OWNERSHIP STRUCTURE, PENSIONS, POOR, POOR EDUCATION, POOR HOUSEHOLDS, POOR POPULATION, POORER HOUSEHOLDS, POVERTY ANALYSIS, POVERTY ASSESSMENT, POVERTY ASSESSMENT TEAM, POVERTY DYNAMICS, POVERTY GAP, POVERTY HEADCOUNT RATES, POVERTY INCIDENCE, POVERTY LEVELS, POVERTY LINE, POVERTY LINES, POVERTY MEASUREMENT, POVERTY PROFILE, POVERTY RATE, POVERTY RATES, PRIVATE COMPANY, PRIVATE EMPLOYMENT, PRIVATE ENTERPRISES, PRIVATE FIRMS, PRIVATE SECTOR, PROGRESS, PUBLIC EMPLOYMENT, RAPID GROWTH, REAL INCOMES, REDUCING POVERTY, REDUCTION IN POVERTY, REDUCTION OF POVERTY, REGIONAL DISPARITIES, RELATIVE RISK OF POVERTY, RURAL, RURAL AREAS, RURAL EMPLOYMENT, RURAL HOUSEHOLD, RURAL HOUSEHOLDS, RURAL PHENOMENON, RURAL POPULATION, RURAL POVERTY, RURAL SECTOR, RURAL WAGES, SAFETY NET, SAFETY NET SYSTEM, SECONDARY EDUCATION, SOCIAL ASSISTANCE, SOCIAL PROTECTION, SOCIAL RESEARCH, SOCIAL SAFETY NETS, SUBSISTENCE, SUSTAINABLE POVERTY, SUSTAINABLE POVERTY REDUCTION, TARGETED TRANSFERS, TARGETING, TOTAL EMPLOYMENT, TOTAL FACTOR PRODUCTIVITY, TRANSPORTATION, TUBERCULOSIS, UNDERSTANDING OF POVERTY, UNEMPLOYED, UNEMPLOYMENT, UNEMPLOYMENT BENEFITS, UNEMPLOYMENT RATES, URBAN AREAS, URBAN BIAS, URBANIZATION, WAGE GAINS, WORKER, WORLD HEALTH ORGANIZATION,
Online Access:http://documents.worldbank.org/curated/en/2005/12/7090647/ukraine-poverty-assessment-poverty-inequality-growing-economy
http://hdl.handle.net/10986/8803
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Summary:This Poverty report is aimed at improving the understanding of poverty in Ukraine, and providing linkages between growth, the evolution of economic sectors, and poverty. The main findings can be summed up as follows: An absolute poverty line and a revised consumption aggregate -- jointly developed with Ukraine experts -- indicate that around 19 percent of the population lived in poverty by 2003. While in 1999 Ukraine had a poverty incidence higher than Poland, Russia, Lithuania, or Bulgaria, by 2003 it was the lowest compared with these countries. The overall improvement, however, has been paralleled by an increasing poverty gap between rural and urban households, reflecting the fast but unbalanced economic growth: The growth experience has not changed the rather stagnant level of employment. The improvement in labor markets are associated to gains in productivity and efficiency with resulting wage gains. There is also increased differentiation within workers since the fraction of underemployment has also increased, reflecting partly the subsistence agriculture, and precarious labor markets in some small towns. The combined effects of higher productivity but lower employment in commercial farms left real incomes in agriculture lagging behind other sectors. Rural areas had a slower reduction in poverty due to the combined effect of weather shocks, and restructuring in agriculture. The government has played a critical role in reducing poverty by increasing substantially the social insurance transfers. Other government transfers have become better targeted but still have very limited coverage. The reduction of poverty, however, provides a window of opportunity to reform the safety net system in order to effectively target the poor.