Compensatory Welfare of the Lithuanian Social Insurance System among EU Member States
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Abstract
In Lithuania the social insurance system was on agenda of political debates. It is worth admitting that various aspects have been analysed, but comparative analyses of compensatory welfare outcomes are fragmentary. So, the task of this paper is to evaluate the compensatory level of social insurance system of Lithuania in the context of the EU. The task consists of the following objectives: to analyze the application of spheres, features and indicators of social insurance for the typologies of welfare states; to define EU typologies according to compensatory welfare indicators; to evaluate the compensatory level of social insurance system of Lithuania in the context of EU.
The theoretical part of the article reviews the importance of social insurance systems in the classification of welfare states based on the ideas of the authors: R. Titmuss, J. Myles, G. Esping-Andersen, K. Salminen, G. Bonoli, W. Korpi and others. The main outcomes of the analyses are revealed, that Lithuanian compensatory welfare in a comparative aspect of the EU context could be described as low. This is caused mainly by insufficient participation of the state in financing of social insurance system. When taking into account the old age pension replacement ratio, unemployment benefit per capita, unemployment of income for elderly people, at risk of poverty rate for unemployed people, the at risk of poverty rate after social transfers in Lithuania has a quite similar position to the United Kingdom, despite the fact that in compensatory welfare Lithuania clearly depends on the Baltic state common model.
The theoretical part of the article reviews the importance of social insurance systems in the classification of welfare states based on the ideas of the authors: R. Titmuss, J. Myles, G. Esping-Andersen, K. Salminen, G. Bonoli, W. Korpi and others. The main outcomes of the analyses are revealed, that Lithuanian compensatory welfare in a comparative aspect of the EU context could be described as low. This is caused mainly by insufficient participation of the state in financing of social insurance system. When taking into account the old age pension replacement ratio, unemployment benefit per capita, unemployment of income for elderly people, at risk of poverty rate for unemployed people, the at risk of poverty rate after social transfers in Lithuania has a quite similar position to the United Kingdom, despite the fact that in compensatory welfare Lithuania clearly depends on the Baltic state common model.
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