Lithuanian wealth inequality is the highest in Europe, therefore the Scandinavian system of raising children is not suitable for us

"There has been almost no increase in the increment to individual earnings for each year of schooling between K and 12 since 1980. It was roughly 6 percentage points per year in 1980, and it still is. The earnings increment for a B.A. has risen from 30.4 percent in 1980 to 50.4 percent in 2000 to 56.4 percent in 2017. The gain to a four-year graduate degree (a Ph.D., for example, but an M.D., J.D., or perhaps even an M.B.A.) relative to high school was approximately 57 percent in 1980, rising to 127 percent in 2017.

These differences result in large part because ever greater levels of skill — critical thinking, problem-solving, originality, strategizing — are needed in a knowledge-based society.

In their paper “The Economics of Parenting,” three economists, Matthias Doepke at Northwestern, Giuseppe Sorrenti at University of Zurich and Fabrizio Zilibotti at Yale, describe three basic forms of child rearing:
The permissive parenting style is the scenario where the parent lets the child have her way and refrains from interfering in the choices. The authoritarian style is one where the parent imposes her will through coercion. In the model above, coercion is captured through the notion of restricting the choice set. An authoritarian parent chooses a small set that leaves little or no leeway to the child. The third parenting style, authoritative parenting, is also one where the parent aims to affect the child’s choice. However, rather than using coercion, an authoritative parent uses persuasion: she shapes the child’s preferences through investments in the first period of life. For example, such a parent may preach the virtues of patience or the dangers of risk during when the child is little, so that the child ends up with more adultlike preferences when the child’s own decisions matter during adolescence.
There is an “interaction between economic conditions and parenting styles,” Doepke and his colleagues write, resulting in the following patterns:
Consider, first, a low inequality society, where the gap between the top and the bottom is small. In such a society, there is limited incentive for children to put effort into education. Parents are also less concerned about children’s effort, and thus there is little scope for disagreement between parents and children. Therefore, most parents adopt a permissive parenting style, namely, they keep young children happy and foster their sense of independence so that they can discover what they are good at in their adult life.
The authors cite the Scandinavian countries as key examples of this approach.
Authoritarian parenting, in turn, is most common in less-developed, traditional societies where there is little social mobility and children have the same jobs as their parents:
Parents have little incentive to be permissive in order to let children discover what they are good at. Nor do they need to spend effort in socializing children into adultlike values (i.e., to be authoritative) since they can achieve the same result by simply monitoring them.
Finally, they continue, consider “a high-inequality society”:
There, the disagreement between parents and children is more salient, because parents would like to see their children work hard in school and choose professions with a high return to human capital. In this society, a larger share of parents will be authoritative, and fewer will be permissive.
This model, the authors write, fits the United States and China.
There are some clear downsides to this approach:
Because of the comparative advantage of rich and educated parents in authoritative parenting, there will be a stronger socioeconomic sorting into parenting styles. Since an authoritative parenting style is conducive to more economic success, this sorting will hamper social mobility.

Sorrenti elaborated in an email:
In neighborhoods with higher inequality and with less affluent families, parents tend to be, on average, more authoritarian. Our models and additional analyses show that parents tend to be more authoritarian in response to a social environment perceived as more risky or less inspiring for children. On the other hand, the authoritative parenting styles, aimed at molding child preferences, is a typical parenting style gaining more and more consensus in the U.S., also in more affluent families."