| Abstract [eng] |
This master’s paper reviews the existing academic research literature on Lithuania’s income inequality, important works examining other countries and the modern income inequality research methodology. During the research, the income inequality distributions of Lithuania for the period 1986-1993 were reconstructed, using incomes grouped according to the Soviet methodology. Income distribution tails were Pareto corrected, then Lithuanian Kuznets and Lorenz curves were drawn and evaluated. Then the relationship between the Gini and categorical variables of the tax system, inflation and gender income inequality is explored. During the study of the causes of income inequality, the following economic factors affecting Lithuania were identified: inflation and its first lag positively affect the Gini, the first lag of gender income inequality positively affects the Gini. The study also found that in Lithuania Gini has a negative autoregressive tendency. After conducting the legal and economic descriptive analysis of income inequality in Lithuania, six legal- tax proposals were formulated. Three are dedicated to addressing income inequality and three are dedicated to addressing wealth inequality. |
