Analytics, Society, Statistics, Wages
International Internet Magazine. Baltic States news & analytics
Thursday, 28.03.2024, 15:26
Income of the poorest population increased by 10.6%
Household disposable income by quintile group; 2008–2015
Quintile group2 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | Income growth in 2015, compared to 2014 (%) | Income growth in 2015, compared to 2010 (%) |
on average per household member monthly, euros | ||||||||||
1st (poorest households) | 112 | 100 | 97 | 104 | 112 | 125 | 135 | 150 | 10.6 | 54.4 |
2nd | 201 | 202 | 194 | 199 | 209 | 228 | 245 | 257 | 4.8 | 32.2 |
3rd | 281 | 259 | 257 | 260 | 272 | 295 | 317 | 340 | 7.2 | 32.2 |
4th | 411 | 355 | 338 | 352 | 372 | 413 | 449 | 483 | 7.6 | 43.0 |
5th (richest households) | 797 | 668 | 620 | 681 | 701 | 780 | 847 | 896 | 5.7 | 44.4 |
Average in the country | 355 | 303 | 286 | 305 | 320 | 354 | 387 | 417 | 7.6 | 45.8 |
Compared to the lowest point of the economic crisis, i.e., the year 2010, in 2015 the sharpest income rise – of 54.4 and 44.4%, respectively – was observed in the poorest households (belonging to the 1st quintile group) and the richest households (belonging to the 5th quintile group). The income received by the households of 2nd and 3rd quintile group grew significantly slower – by 32.2%.
Income inequality in Latvia has reduced. Compared to 2014, in 2015 the Gini coefficient was 0.9 percentage points smaller and constituted 34.5%. In 2015, income of 20% of the richest population exceed that of 20% of the poorest population 6.2 times (6.5 times in 2014).
Income inequality indicators; 2011–2015
Indicator | 2011 | 2012 | 2013 | 2014 | 2015 |
Gini coefficient3 (%) | 35.7 | 35.2 | 35.5 | 35.4 | 34.5 |
Quintile share ratio (S80/S20)4 | 6.5 | 6.3 | 6.5 | 6.5 | 6.2 |
Compared to other European Union (EU) Member States5, the income inequality level in Latvia is high. The latest data show that Latvian Gini coefficient was one of the highest in the EU. Higher coefficient was recorded only in Lithuania (37.9%), Romania (37.4%), Bulgaria (37%), Estonia (34.8%) and Spain (34.6%); the EU average indicator constituted 31%. The quintile share ratio was one of the highest in the EU as well – 8.3 in Romania, 7.5 in Lithuania, 7.1 in Bulgaria, 6.9 in Spain, 6.5 in Greece, 6.2 in Estonia and Latvia; the EU average indicator – 5.2.
The data source used for the household disposable income statistics is the survey EU Statistics on Income and Living Conditions (EU-SILC) conducted by the CSB in 2016. The survey covered 6 thousand households, and 11.6 thousand respondents aged 16 and over were interviewed. The CSB will collect the data on the household income received in 2016 during the period from February to June 2017, and respondents will be able to complete electronic questionnaire online.