Page 45 - Azerbaijan State University of Economics

Vilayat İsmayilov, Nahid Almasov, Sarraf Mirzayev:The Programme of Reduction and
Profilling of Long-Term Unemployment in Azerbaijan

But after the introduction of the "real balance effect" into the model, this particular
case was rejected, and therefore the prevailing conclusion was that "the critical
assumption in Keynes' theory is that wages are steadily directed downward"
[Malinvaud E.,1982]. Illustrative calculations show that, when critically evaluated, the
predominant indicator of global poverty has been a reduction in global poverty over
the past 30 years. This is mainly due to the lower level of absolute poverty in
developing countries [Rajan R.,2010]. After examining macroeconomic indicators
such as poverty, inequality, and economic growth, it should be noted that identify
problems, study the facts, analyze what forces have influenced the results and what we
should do in addressing policy issues that contribute to higher employment levels
[Anthony, B. A. and Nicholas, S., 2017]. By examining income inequality using
sample microdata from EU Statistics on income and living conditions, the researchers
confirm that income inequality in Lithuania is high compared to the EU average. Their
decompositions show that the number of working household members in Lithuanian
households affects income inequality more than in the EU. This is due to the large
labor income and income from self-employment, in particular, the contribution to
inequality in Lithuania [Nerijus, C, and Andrius., 2020].

Poverty in conditions of transformation economy is an economic relationship
between the individual and the state and the individual and the Corporation
regarding the uneven distribution of social wealth of the country, which are
characterized by the dominant, which is based on high inequality of income because
of the redistribution of ownership, underdevelopment of the national lab our market
disparities at the phases of social reproduction, elimination or reduction of a number
of grants and subsidies, inflationary redistribution of income, movement of labor
from the public to the private sector, etc.

It should be noted that the main cause of poverty is the formation of a capitalist
economy accompanied by the transformation of property and the management
mechanism, for which poverty and unemployment are immanent features. The
relationship between employment and poverty reduction is evident primarily in the
production stage. If an individual is not involved in the production process for one
reason or another, then he is excluded from the list of primary income recipients. It
should be recognized that if a person's labor activity does not provide a minimum
level of income at the expense of which he is able to sell his labor, then this form of
labor cannot be recognized as economic. Therefore, those workers whose incomes
are below the subsistence minimum cannot be recognized as productive workers.

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