HOUSEHOLD EXPENDITURES IN UKRAINE: TYPOLOGY AND STRUCTURAL DIFFERENCES

Abstract

The aim of the study is to examine structural differences in household expenditures, to classify households by income level and socio-demographic characteristics in order to identify disparities in their consumption capabilities, to highlight those most vulnerable to crises and shocks, and to develop recommendations for state social policy. The survey on the socioeconomic situation of households, in which the authors were directly involved, made it possible to fill the informational gap caused by the discontinuation of the Household Living Conditions Survey, which had been conducted by the State Statistics Service of Ukraine since 1999. A database was created, and indicators were calculated to characterize various aspects of household living conditions. Poverty levels were calculated for various household types using two criteria: the absolute criterion (based on the actual subsistence minimum) and the relative criterion (75% of the median level of total equivalent expenditures). The results of the study reveal significant structural differences in consumption expenditures between poor and non-poor households, as well as between households with children and those without. Among families with children, large families are in the most disadvantaged position. The study found that, under wartime conditions, households are forced to reduce their consumption of certain goods and services, leading to a decline in living standards — especially for the most vulnerable segments of the population. At the same time, the research shows that households with higher income levels have greater flexibility in their spending, allowing them to better adapt to crisis conditions. The structure of total expenditures was analyzed for families with different compositions in the pre-war year of 2021 and during the second year of the war. It was found that compared to 2021, spending on food, healthcare, and household goods has increased significantly, while spending on clothing and footwear has increased to a lesser extent. Conversely, there has been a sharp decline in the share of expenditures on personal subsidiary farming, financial assistance to relatives, real estate purchases, major home repairs, housing construction, the purchase of stocks and foreign currency, and bank deposits. Per capita food consumption indicators were calculated for families with and without children, including families with one child, two children, and three or more children. The expenditure structure of families at higher risk of poverty and vulnerability was also analyzed, including families with children and persons with disabilities, families with children and elderly or disabled members, families with children where all adults are incapable of working, and internally displaced persons families. The research methodology includes the use of statistical methods to analyze data obtained from the Household Living Conditions Survey, which is representative of the entire population of Ukrainian households. Methods of analysis and synthesis, comparison, systems approach, classification, structural analysis, and the index method were also employed.

The findings of this study can be useful for developing recommendations on social policy and support measures for the most vulnerable population groups, as well as for designing effective crisis response strategies. The study also provides new approaches to understanding the socio-economic consequences of war for the consumption capacity of different types of families in Ukraine.

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