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EN
This paper investigates current conditions, problems and ways of improving minimum wage formation in Ukraine. The concept and role of minimum wage in the economy as well as the dynamics of nominal and real minimum wage levels were considered. Based on international comparisons and comprehensive analysis of the dynamics of minimum wage, consumer basket and cost of living in Ukraine, it is substantiated the close economic relationship between these indicators. The results of investigation of key economic indicators concerning wages and life quality allowed offering a number of recommendations to improve the mechanisms for determining minimum wage in Ukraine. The proposed improvements are based on a comprehensive assessment of consequences of unjustified minimum wage increase and take into account the experience of the development countries in this field.
EN
The article presents the results of research analyses of living standard dynamics in Ukraine in 1991-2010 based on the minimum of subsistence wage, the level of minimum of subsistence, minimal wage statistics. Represented comparative data of consumer’s inflation basket value structure in Ukraine, Poland and Germany additionally to statistical analyses give the author ground for making conclusions on inefficiency of social standard – subsistence minimum wage in Ukraine constitutionally declared as a social state. Research on Ukrainians’ living resources in post-soviet times is conceptually performed in terms of informal economy (K. Hart, H. de Soto et al) and family economy (G. Becker, T. Shanin et al.) with broad use of relevant sociological information. Foreign studies on informal economy in former soviet republics have confirmed the author’s hypothesis about historical long-lasting soviet people’s forced capability to informal economic activity in terms of survival doctrine (after I. Popova) from Soviet times. By reason of governance non-competence and absence of adequate socio-economic policy in Ukraine the earnings within informal economy and traditional family economy resources are still being considered as main in formation and accumulation of the living means for most Ukrainians during all the post-soviet period.
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