How to impact on the demographic processes at a micro-level



The printing article discloses the problems of demographic development of present day Ukraine in their interrelation with the current economic situation. The author defines the levels and mechanism of socio-economic influence on demographic processes. Demographic functions of the main microeconomic categories “household” and “enterprise” were defined and a theoretically-methodological base for strengthening their role in the improvement of national demographic conditions was created.


The present day demographic situation in Ukraine is characterized by permanent tendencies in the increase of death rate level, decrease of birth-rate level, senescence of population and an increase of the level of demographic loading on one employable person. Considerable reduction of population due to both natural and migration factors compared to the world demographic boost makes it possible to view the situation not only as one of gradual extinction of one of Europe’s largest territories, but also as a precondition of economic disasters, among which, in particular, are the drop in both native and foreign investments, labour force reduction, decrease in the number of entrepreneurs, “idea generators”, consumers [7, p. 66]. This is all bound to cause the lessening of bulk of actual internal production. The modern world with its socially orientated outlook, high information level in society relations and further globalization tendencies in economics does not permit such complications.

Demographic complications in a separate country produce an unfavorable economic climate in the region as a whole, make fruitful economic cooperation with neighbouring countries virtually impossible. At the same time demographic expansion due to migration of population, to increase in the amount of aliens and to diminishing of proportion of indigenous population is also a menace to the economic safety of the state, because it increases the dependence of economy of the state on the presence of external labour resources [4, p. 6].

Labour resources and the potential of internal market of a country or a region are first and foremost influenced by the amount of population. To some extent it also determines the volume of the internal gross national product, although this dependence is not a direct one: the dominant influence on it value is exacted by other factors (for example, work productivity) [6, p. 79].

At this point, system studies in this scientific area were absent, thus the material has some scientific novelty.

The purpose of the article is to determine the necessity of overcoming a demographic crisis and negative demographic tendencies as one of priority tasks in the socio-economic sectormaking theoretical foundation for the solution of the indicated problem, especially at the level of methodological base of economic theory, is required.

Researching the problem assigned, we propose first of all to define subjects of socio-economic impact depending on their level: 1) macro subjects; 2) subjects of microeconomic impact (hereinafter – SMI); 3) subjects of action at different levels (hereinafter – SADL). It is necessary to specify that macro subjects influence not only aggregated economic indicators, but also their separate components. At the same time, SMI changes the state of every separate subject of microeconomics, not always substantially changing general conditions at a macro-level. The situation is complicated by the fact, that in the form of a demographic policy of the state, the necessity of influence on demographic objects on a macro-level by the subjects of state influence and scientific search is not fully realized. However, the level of scientific research and realization of demographic policy at micro-level does not correspond to the present demands. The sphere of SADL includes trade unions (a particular trade union at the level of a particular enterprise as well as a federation of  trade unions at the state or regional level), market mechanism at the level of a separate commodity (with a inelastic demand first of all) and at the level of aggregated indexes.

Realization of microeconomic demographic policy on the basis of which the influence on demographic processes at the level of separate economic subject (firms, households) is carried out, makes it possible not only to introduce the results of development of the government socio-economic programs, but also to raise the productivity of work of an enterprise, to create more favorable psychological production climate, to improve relations between leaders and subordinates and to decrease the amount of conflict situations.











Figure 1. Conglomerate of theory and policies in the process of determining socio-economic priorities

Source: developed by the author.

The general operational structure of a ct of socio-economic mechanism was formulated by I. Prybytkova: “the concept which explains progress of population trends is based on a triad of “socio-economic conditions – demographic conduct – intensity of demographic processes”” [5, p. 4].

Thus, the humanistic approach to manage an enterprise and to household activities, combined with high level of economic efficiency of these subjects and with determination of demographic priorities of economic activity of a micro subject are able to assist in the improvement of the national demographic situation.

Among specific socially-demographic aims of activity at the micro-level are:

  • increase, or at least preservation of mathematical quantity of the human constituent of micro objects, its biological and intellectual parameters with the aim of raising the level of its economic participation and its productivity;
  • creation pre-conditions for expansion of scopes of production or other economic opportunities of households or enterprises, including those due to the expansion of influence of intellectual-biological factor;
  • strengthening social structure of society through economic development of households (families) and socialization of organizational and production relations at enterprises;
  • creation of social humanistic approach as a result of realization of the three previous aims.

Among by the subjects of socio-economic influence, beside the already mentioned family and enterprise, we consider to be bodies of state and local government which operate primarily through the mechanism of realization of the indicative state planning.

It should be remembered that a person or a family can be the objects of simultaneous socio-economic influence at a number of levels: as elements of privately owned household, as hired workers of enterprises, as trade union members, as objects of government economic policy, as objects of social and charity programs etc.

The contents of socio-economic policy in firms differ in different countries, because to a great deal, it is determined by the system of government control of entrepreneurial activity and social position of workers, and also by the role, played by the trade unions and different public welfare organizations [2, p. 66]. The level of socialization of economic activity of a firm as concerns the hired personnel is determined by:

  • the form of ownership of enterprise, and for the state-owned enterprises – by the state demographic priorities if there are such;
  • the profitability level of an enterprise (presence of a material base for demographic stimuli);
  • the health hazard level of economic activity of a firm (organizational pre-conditions for personnel health deterioration);
  • level of intent of leaders/owners on gaining super profits and by their attitude to keeping to the state regulations on work time and wages.

The increase of production profitability ensures financial resources, as well as a successful implementation of socio-economic and ecological programs. These include the extended reproducing of competitive production in a region, financial stock accumulation, strengthening of tax potential, improvement of demographic situation andwell-being of population in the context of harmonization of regional and national interests [1, p. 92].

Economic results of household activities under the conditions of the present day mixed economic system ought to be examined as results not only of the private activities of the indicated subject, but also of state interference with economic processes [8, p. 73]. It is a household which is one of the main subjects, and at the same time objects of socio-economic and biological influence on demographic processes, consequently the increase of its real income level can be considered as a certain stimulus to growth, or at least preserving of its number.

Taking into account the difference between the demographic category of “family” and the economic category of “household”, it is necessary to specify the following: the purpose of activities of a household as an economic research object is the most rational use of available resources (first of all, labour force) for maximum satisfaction of personal needs. Thus a household is viewed as an aggregation of people who carry out mutual economic activities. A family, as a demographic object, is viewed as a factor of population reproduction and as the main object of research. Its main feature is the presence of family relations. So, the categories of “household” and “family” are far from being always identical. We will here attempt to define the level of demographic participation of households of different types.

  1. Individual households. The increase in their number may become possible mainly due to demographic redistribution (the individual is joined by a subject who belonged to the other household before). Such elements can assist the future demographic growth.
  2. Unisexual group of households is not able to reproduce and to assist in the increase of population.
  3. Heterosexual group households of married persons of reproductive age are a potential source of population growth.
  4. Heterosexual group households of persons of reproductive age who are blood relatives (brothers and sisters). In case of the proper conduct, they also are not a source of population growth.
  5. Heterosexual group households of persons of unreproductive age, who also are not able to assist in the increase of population.

Among the main socio-economic and organizational actions of the state concerning the stimulation and increase of level of generative behavior of households we consider to be:

  • expansion of sources of profit earning by assisting in the development of market infrastructure;
  • assistance in the development of small and, in particular, family enterprises;
  • environmental protection of population through the economic mechanism of influence on the level of environment pollution;
  • aligning quality and availability of infrastructural-communal utilities and conveniences for city dwellers and rural population;
  • promotion of healthy life-style;
  • assistance in increasing career possibilities and creative development of a person;
  • improvement of guarding border and customs control with the aim to avoid death rate, disease and injury level growth due to terrorism, diseases imported by illegal migrants and low quality commodities;
  • raise of medical service level, particularly prophylaxis and diagnostics, bringing its price level to the possibilities of official income level etc.

The conducted research allows defining demographic aspect priorities in the process of realizing economic policy at macro- and micro-levels. The demographic functions of an enterprise and a household we have specified as well as actions for strengthening their role, make it possible to formulate, at a theoretical level, some modern functions of microeconomic subjects, and, at a practical level, — to assist in the development of positive demographic tendencies at micro-level.



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Roman V. Yakovenko,

PhD in Economics, Associate Professor

Central Ukrainian National Technical University