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Friday, 29.03.2024, 00:19
More than half of Latvia's residents consider themselves middle class - study
While presenting the study, Evija Kropa, head of Swedbank
Institute of Finances, said that the middle class was a social group that not
only made significant contribution to Latvia's budget and economic growth. The
middle class also reduces social inequality. However, there are no definitive
criteria in the world as to which persons belong to the middle class. Most
often the main criterion is the person's income level, but it is no less
important what people can achieve with the money they have. The circumstances,
wealth, incomes and consumption are also important criteria, she said.
According to Swedbank survey, 52.6% of Latvia's residents
consider their households middle class. 39.4% said that their households were
below middle class, 3.4% said that their households were wealthier than middle
class families, while 4.6% had no opinion.
People up to 45 years old, people with higher education and
high to medium incomes mostly consider themselves middle class. Most of those
who consider themselves below middle class are residents older than 45,
residents with low incomes and residents with primary education.
On the other hand, 59.6% of respondents believe that no more
than 30% of society are middle class.
Most respondents said that a household may be considered
middle class if monthly income per family member was at least EUR 810 after
tax. And wealthy families are those where monthly income per family member is
over EUR 2,600 after tax.
The main criteria characteristic of a middle class family
include owning a home or property - 73.1% of respondents said so, 54.3% named
traveling abroad for at least seven days each year, 53.8% said middle class
families had no problems with their monthly loan payments and other
obligations, and 44.2% said they had access to private healthcare services.
In reality, however, only 10% of respondents meet all of the
above criteria. 67.2% of households that consider themselves middle class
actually own a home or property, only 35.4% can make their monthly loan
payments without a problem, and 26.5% have access to private healthcare.
Swedbank economist
Linda Vildava added that income
inequality in Latvia had decreased from 2005 to 2016, although income
inequality still remains a problem in Latvia.
The survey was carried this past August, interviewing 1,015
residents at their homes.