According to Luminor Bank economist Žygimantas Mauricas, Lithuanians who earn at least 1,128 euros a month can consider themselves part of the European Union’s middle class, but experts believe that this is a simplification of economic reality and does not correspond to reality.
The question of what income should be in order to belong to the middle class of society has long been a topic of discussion in Lithuania. Many Vilnius residents surveyed indicated that income should be much higher. Vytautas said that 2,500 euros after taxes would be enough – then you can save a little and go on a trip. He added, however, that prices are rising so rapidly that by spring they will already be 3,000 euros.
Margarita would have enough for basic needs with 1,300 euros a month, but she couldn’t afford to travel on that amount. Young mother Jūlija said that, considering current prices, anything under 2,000 euros is too little. Aurelia, who retired six months ago, believes that the middle class starts with a monthly income of 2,500 euros.
Even the youngest residents of Vilnius believe that the middle class needs a higher income than the Luminor economist indicated. One young person said that at least 1,500 euros are needed so that every cent doesn’t have to be counted.
Despite what residents say, Mauricas pointed out that
in the broader EU context, many Lithuanians are already representatives of the European middle class.
The usual definition of the middle class is those who receive 60-250% of the median income, and in Europe this is a monthly income of 1,128-4,700 euros. The economist added that many were surprised that the threshold was so low, but after the introduction of the euro in 2015, Lithuanian incomes were rapidly approaching the EU average.
True, the economist admitted that the EU median is affected by the sluggish growth of wages in Southern Europe, and the rapid jump of Lithuanians is partly because wage growth has become much slower elsewhere in Europe.
Not all economists are convinced that Lithuanians belong to the European middle class. Vilnius University professor Romas Lazutka said that the calculations do not show the true picture, and Lithuanians are running after a train that is standing still. “People don’t go to the store with percentages – they go with euros. If a German’s salary increases 5% and that’s €150, but a Lithuanian gets 10% and that’s €100, are we catching up or falling behind? In percentages, yes. In euros, no,” the professor noted.
Lazutka also pointed out that defining the middle class solely by income is misleading, especially considering that in modern society economic structures are more complex than in the past. He said that today a plumber or electrician earns the same or more than a teacher, but traditionally neither a plumber nor an electrician would belong to the middle class, but teachers do. Despite the increase in wages, income inequality is still observed in Lithuania, and the country still has a lot of work to do.
Read the full article in English here: https://www.lrt.lt/en/news-in-english/19/2752174/does-eur1-128-a-month-make-lithuanians-part-of-european-middle-class-opinions-diverge
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