Income distribution peculiarities of households with children: a case study*

Abstract

The article explores family income indicators in the context of the transformation of the family model in Kazakhstan in terms of large families- households with children. The purpose of the article is to assess the level and dynamics of families´ incomes with children in Kazakhstan to develop recommendations for improving the support policy, that will provide new consumption patterns and sustainable growth of entrepreneurship activities, including social entrepreneurship.The methodology for studying the income level of families with children was based on economic and statistical methods for assessing the inequality of incomes of families with children based on a comparison of the characteristics of the distribution series and quintile groups. An income structure assessment within population is presented in the quintile groups, and the dynamics of the proportion of children in the first quintile group. The authors substantiated the use of the children´share indicator of child poverty in the absence of a corresponding indicator in official statistics in the first quintile group. An analysis of favorable dynamics related to number of children living in low-income families within the first quintile group makes possible to assess current trend as negative. An assessment is made of the differentiation of income within a group of households (HH) with children: the parameters of the distribution series by the indicator of income used for consumption are compared; the ratio of income used for consumption with a living wage is estimated as well. There is estimated uniformity and asymmetry of the distribution series of families with children. To identify common and special characteristics, the distribution series were compared with the similar characteristics of the distribution series for all households. The most significant substantive result identified by the authors is the growing inequality in the distribution of income between small families (1-2 children) and large families (3 or more children) while maintaining a high proportion of children in the first quintile. The authors developed a number of recommendations towards social policy, the introduction of an official indicator of child poverty in official statistics to adequately assess measures taken by the state, and the development of social entrepreneurship as an effective tool to empower children from low-income families.