The income differentiation between the residents of Latvia in 2000—2008

This paper provides an analysis of income differentiation among the residents of Latvian regions in order to assess the government’s economic policies aimed at the development of a socially inclusive market economy in the country. The paper describes the dynamics of changes in the income of population of Latvian regions over nine years (2000—2008). The authors put forward a hypothesis that the changes in the state social and economic policy tend to influence the level and dynamics of income of Latvia’s population