Measurement and decomposition of Lithuania's income inequality

Abstract: Even though Lithuania's household income inequality is among the highest in the European Union (EU), little empirical work has been carried out to explain such disparities. We investigate it using the EU Statistics on Income and Living Conditions sample microdata. We confirm that income inequality in Lithuania is high compared to the EU average. Our decompositions reveal that the number of employed household members in Lithuania's households affects income inequality more as compared to the EU. It is related to a larger labour income, and self-employment income, in particular, contribution to inequality in Lithuania. Moreover, taxes, social contributions, and transfers reduce income inequality in Lithuania less than in the EU. Specifically, income taxes and social contributions are less progressive while transfers constitute a smaller share of income in Lithuania than in the EU. Income taxes and social contributions are effectively regressive for the self-employed in Lithuania

Location
Deutsche Nationalbibliothek Frankfurt am Main
Extent
Online-Ressource
Language
Englisch
Notes
Veröffentlichungsversion
begutachtet (peer reviewed)
In: Baltic Journal of Economics ; 20 (2020) 2 ; 139-169

Classification
Wirtschaft

Event
Veröffentlichung
(where)
Mannheim
(who)
SSOAR, GESIS – Leibniz-Institut für Sozialwissenschaften e.V.
(when)
2020
Creator
Černiauskas, Nerijus
Čigina, Andrius

DOI
10.1080/1406099X.2020.1780693
URN
urn:nbn:de:0168-ssoar-74553-2
Rights
Open Access; Der Zugriff auf das Objekt ist unbeschränkt möglich.
Last update
25.03.2025, 1:53 PM CET

Data provider

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Associated

  • Černiauskas, Nerijus
  • Čigina, Andrius
  • SSOAR, GESIS – Leibniz-Institut für Sozialwissenschaften e.V.

Time of origin

  • 2020

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