Social inclusion and economic uncertainty: the reflection in public policy

Abstract

The considered study is based on the idea of the relationship between social inclusion and economic uncertainty. The way these phenomena relate to each other should be reflected in the choice of public policy model. Although social inclusion has various manifestations, it is primarily manifested in the stratification of society by income. The initial generalizations are made on the basis of the analysis of empirical data regarding the relationship between two indicators of differentiation. The authors interpret social inclusion as a phenomenon that implies a decrease in income differentiation against the background of economic indicators improvement. Certain public authority influential factors should be identified to make social inclusion public authority strategic target. A set of endogenous variables has been analyzed according to the Ukrainian data. Neural Networks tools have been used to assess their impact on income differentiation indicators. The differentiation of income in Ukrainian society has been influenced by obvious and hidden variables. The effects of the identified variables on income differentiation have appeared to be multilevel. These variables combined into nodes of interaction. Awareness of these links and nodes of interaction is an important prerequisite for the formation of a public policy model which can ensure social inclusion.