Development of Regional Differentiation of Population Income in Relation to Middle Class Growth in Lithuania

Abstract

The study aims to evaluate population income differentiation in the regions of Lithuania. The important question is about the development opportunities of the middle class regarding regional differences. The assessment of territorial differentiation of income is based on the indicators of disposable labour income and wages. Formally, the priority must be given to the disposable income indicator, hence the assessment of wage differentiation and comparison of these two indicators using a comparative analysis method enable a better understanding of the social meaning behind the observed differences because business income influences regional disparities of income per capita. The study evaluates changes in the regional differences of wages and general structural disparities of wages in the country with the development possibilities of middle class formation. The research includes a local and geographical variation of disposable labour income and a comparison of relational indicators representing population well-being by regions.