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International Internet Magazine. Baltic States news & analytics Monday, 25.03.2019, 20:42

In 2017, household disposable income increased by 11.8 %

Liene Āboliņa Senior Officer Social Statistics Data Compilation and Analysis Section, 19.12.2018.Print version
Results of the survey conducted by the Central Statistical Bureau (CSB) in 2018 show that, compared to 2016, in 2017 household disposable income1 increased by 11.8%, reaching 489 euros per household member monthly. The growth rate of household income was the largest, compared to the increase recorded in the previous years – 4.9% in 2016, 7.6% in 2015, 9.3% in 2014.



In 2017, the smallest household disposable income was in Latgale – 330 euros per household member monthly. Since 2016 household income in this region has increased by 10.3%. But the largest income was in Riga and Pierīga – 592 euros and 536 euros, respectively. In these regions household disposable income rose by 12.2%. In Zemgale household disposable income comprised 442 euros per month (increase of 14.4%), in Kurzeme – 431 euros per month (increase of 8.8%) and in Vidzeme – 401 euros per month (increase of 9.6%). In urban areas household disposable income comprised 518 euros per household member monthly (increase of 10.9%) and in rural areas – 425 euros per month (increase of 14.2%). 


In 2017, household income from labour per household member rose by 13.1% – from 311 euros a month in 2016 to 352 euros a month in 2017. Income from social transfers2 (pensions, allowances and other budgetary payments) per household member grew slower – by 4.2% (from 108 euros a month in 2016 to 112 euros a month in 2017).  


In 2017, the share of income from labour amounted to 72% of the total disposable income (71.2% in 2016), while the share of social transfers amounted to 23% (24.7% in 2016).




In 2017, compared to 2016, the lowest increase in income was observed in the poorest households (by 5.6% in households of the 1st quintile group3 and by 7.1% in households of the 2nd quintile group). The largest growth in income was recorded in households belonging to the 5th quintile group (increase of 14.3%). Over a year income in households of the 4th and 3rd quintile groups grew by 11.3% and 11.6%, respectively.


Household disposable income by quintile group; 2008–2017

(on average per household member monthly, EUR)


 

 

Quintile group

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

Income increase in

2017, compared to 2016, %

1st

(poorest households)

112

100

97

105

112

125

135

150

154

162

5.6

2nd

201

202

194

199

209

228

245

257

266

285

7.1

3rd

281

259

257

260

272

295

317

340

360

401

11.6

4th

411

355

338

352

372

413

449

483

514

572

11.3

5th

(richest households)

797

668

620

681

701

780

847

896

942

1076

14.3

National average

355

303

286

305

320

354

387

417

437

489

11.8



In 2017 income inequality increased. The Gini coefficient of Latvia grew by one percentage point over the year (from 34.5% to 35.6 %), moreover, gap between the poorest (1st quintile group) and the richest (5th quintile group) became more obvious. In 2017 income of the richest population was 6.8 times higher than that of the poorest population (in 2016 this difference in income was 6.3 times).


Income inequality indicators, 2008 – 2017


indicator

2008

2013

2014

2015

2016

2017

Gini coefficient4 (%)

37.5

35.5

35.4

34.5

34.5

35.6

Quintile share ration (S80/S20)5

7.4

6.5

6.5

6.2

6.3

6.8



Compared to other European Union (EU) Member States6, the income inequality level in Latvia remains high. According to the latest data, the Gini coefficient of Latvia was the third highest among EU Member States. In 2016, the coefficient was higher only in Bulgaria (40.2%) and Lithuania (37.6%); the average coefficient of EU amounted to 30.3%. The quintile share ratio was also third highest in the EU. Higher quintile share ratio in 2016 was only in Bulgaria (8.2) and Lithuania (7.3), while the EU average amounted to 5.1.

 

Household disposable income data source: survey on income and living conditions conducted by the CSB in 2018 (EU-SILC – EU Statistics on Income and Living Conditions). The survey covered 5.8 thousand households and 10.8 thousand respondents aged 16 and over. CSB will collect data on household disposable income in 2018 within the framework of the 2019 survey.






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