Income inequality in Lithuania

The article is divided into three main parts. The first part offers a theoretical background of income inequality on the basis of society structure, welfare, value princples and measurement. The second part is devoted to exploring previous researches to find out why income inequality analysis is important. Finally, trends of income inequality during 1996-2006 are assessed. Secondary data analysis is applied to get the findings of the research. The main conclusions are: income is one of the dimensions of the status in society. Income also determines personal possibilities. Income distribution is defined using various measurements, but the evaluation always depends on the choice of values. During ten years (1996-2006), income inequality in Lithuania increased, but also the risk of poverty was one of the highest in Europe. Income inequality in Lithuania was one of the highest in the European Union.