ABSTRACT
In recent decades, the growing economic inequality in the global economy has reached unprecedented proportions, and this is confirmed by world research, reports of international organizations, speeches of prominent world economists, and state leaders. A differentiated approach is proposed to identify when economic inequalities begin to negatively affect countries’ socio-economic progress. Economic inequality affects the socio-economic progress of EU countries – economic growth, quality of life, and sustainability. The impact of economic inequality on quality of life, measured by the median income indicator, differs for groups of countries in terms of living standards. One of the main directions in order to solve the problem of inequality in Lithuania is to implement macroeconomic policies focused on increasing employment, which would ensure the creation of decent jobs, expand employment opportunities, and promote business, while ensuring the stability of public finances.
