INCOME DIFFERENCES IN REGIONS OF LATVIA – PROBLEMS AND CHALLENGES

Authors

  • Biruta Sloka University of Latvia, Latvia
  • Inga Jekabsone University of Latvia, Researcher
  • Kate Cipane University of Latvia, Research Assistant
  • Sabine Anete Vasina University of Latvia, Research Assistant

DOI:

https://doi.org/10.5755/j01.eis.0.13.23562

Keywords:

income differences, regional development, Latvia

Abstract

Income differences in regions of Latvia is becoming a greater problem for families as there are made decisions for emigration, for municipalities as there are significant reductions in tax (income and property) payers and for entrepreneurs as there are less customers for their products and services: those aspects are on great importance but not enough researched and discussed in academic research.

Purpose of the study is to analyse income differences in the regions of Latvia.

The tasks of the study:

1) to review theoretical background of income differences in context of regional development;

2) to review existing research of income differences in the regions in EU;

3) to analyse problems of income indifferences in the regions of Latvia.

Research methods used in preparation of the paper: scientific publication and previous conducted research results analysis, analysis of EU-SILC results (in 2014-2017) and European Central Bank conducted survey on Household income and expenses survey results, results are compared with the results of other Eurozone countries. Survey results are analysed using indicators of descriptive statistics (indicators of central tendency or location - arithmetic mean, mode, median), indicators of variability (indicators of dispersion - range, standard deviation and standard error of mean), cross-tabulations for regions in Latvia, for household members, for urban – rural living and analysis of variance - ANOVA are used. The results of analysis have indicated different challenges for decision makers on different levels.

Author Biographies

Biruta Sloka, University of Latvia, Latvia

University of Latvia, Department of Management, Professor

Inga Jekabsone, University of Latvia, Researcher

University of Latvia, Institute of Economics and Management, Researcher

Kate Cipane, University of Latvia, Research Assistant

University of Latvia, Research Assistant

Sabine Anete Vasina, University of Latvia, Research Assistant

University of Latvia, Research Assistant

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Published

2019-10-29

Issue

Section

Economics of European Union