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THE MINIMUM INCOME SCHEME REFORM IN LITHUANIA

Ekonomika

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Title THE MINIMUM INCOME SCHEME REFORM IN LITHUANIA
THE MINIMUM INCOME SCHEME REFORM IN LITHUANIA
 
Creator Lazutka, Romas; Vilnius University, Lithuania
 
Subject
minimum income, social assistance, work incentives


minimum income, social assistance, work incentives

 
Description The article reviews the current social assistance scheme in Lithuania and its recent reform. The aim of this paper is to evaluate the scheme in three dimensions: coverage of poor people, adequacy of benefit amounts, and social assistance reconciliation with work incentives. The analysis of the minimum income protection reform is based mainly on the data from Survey of Income and Living Conditions and Administrative Data from the Ministry of Social Security and Labour. The paper discovers the changing role of the minimum income scheme in the context of an economic cycle, its targeting to low-income strata of the population and an adequate amount at least for families with children. However, the growing incentives of local authorities to reallocate funds envisaged for social assistance to other needs can erode the scheme. The article ends with several recommendations to policy makers.
The article reviews the current social assistance scheme in Lithuania and its recent reform. The aim of this paper is to evaluate the scheme in three dimensions: coverage of poor people, adequacy of benefit amounts, and social assistance reconciliation with work incentives. The analysis of the minimum income protection reform is based mainly on the data from Survey of Income and Living Conditions and Administrative Data from the Ministry of Social Security and Labour. The paper discovers the changing role of the minimum income scheme in the context of an economic cycle, its targeting to low-income strata of the population and an adequate amount at least for families with children. However, the growing incentives of local authorities to reallocate funds envisaged for social assistance to other needs can erode the scheme. The article ends with several recommendations to policy makers.
 
Publisher Vilniaus universiteto Ekonomikos fakultetas / Vilnius University Faculty of Economics
 
Contributor

 
Date 2015-01-01
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier http://www.zurnalai.vu.lt/ekonomika/article/view/5038
10.15388/Ekon.2014.93.5038
 
Source Ekonomika; Ekonomika 2014 93(4); 24-40
1392-1258
1392-1258
 
Language lit
 
Relation http://www.zurnalai.vu.lt/ekonomika/article/view/5038/3301
 
Rights Autorinės teisės (c) 2015 Ekonomika