International Business Management
ISSN: OnlineISSN: Print 1993-5250
Abstract
Household incomes are one of the key indicators of economic growth, which characterizes purchasing capacity, consumer demand of households and quality and level of people’s lives. Correspondingly, the topical issue is recognition of determinants of household income, which will allow giving them quantitative estimation and define consequences of changing outer environment’s influence on them. The subject of this research was to define main factors that influence differentiation of household incomes. The object of the research is 31 European countries. We have applied comparative and regressive analysis for verifying hypotheses about influence of demographic, macroeconomic and indices of labor market in household incomes. Non-uniformity of household incomes in European countries was justified by means of dividing the countries into three groups. Comparative analysis on demographic factors, work activity, household type, education level and tenure status allowed detecting dependencies in the level of household incomes. Determinants of household incomes were macroeconomic factors and labor market factors which was proved by built regressive models. Results of this research include key factors that influence household incomes, which should be considered at conduction of social and economic policy in European countries. European countries common factors in the level of household incomes. Determinants of household incomes are macroeconomic factors and factors of labor market which is proved by built regressive models. The results of the study performed includes key factors that influence household incomes which should be considered at adoption of social and economic policies in European countries.
How to cite this article:
Julia A. Varlamova and Natalia I. Larionova. Determinants of Household Income in European Countries.
DOI: https://doi.org/10.36478/ibm.2015.1367.1371
URL: https://www.makhillpublications.co/view-article/1993-5250/ibm.2015.1367.1371