THE ACTIVITY OF THE “POVERTY TRAP” AND THE POSSIBILITIES OF EXTINGUISHING IT ON THE BASIS OF PRODUCTIVE EMPLOYMENT PRINCIPLES
Keywords:
poverty trap, productive employment, labor market, unemployment, inflation, social protection, minimum wage, economic growth, panel data analysis, VAR model.Abstract
The article analyzes the essence of the poverty trap and the ways to overcome it through labor market policies and the principles of productive employment. According to the results of panel data analysis, the employment index and GDP growth significantly reduce the level of poverty, while unemployment and inflation, on the contrary, increase it. At the same time, the minimum wage and social transfers play an important role as an income floor in weakening the poverty trap. Based on the VAR model, it is forecasted that the poverty rate in Uzbekistan will gradually decline during 2025–2030. The findings indicate that productive employment—namely, quality jobs that ensure adequate wages, labor rights, and social protection—represents the key mechanism for overcoming the poverty trap and improving the population’s living standards.
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