Cash Benefits and Poverty Alleviation in an Economy in Transition: The Case of Lithuania

Peter K Cornelius

Comparative Economic Studies, 1995, vol. 37, issue 2, 49-69

Abstract: Transition caused output to contract sharply and income differentials to widen, thus poverty has become a serious policy issue in Lithuania. Dramatic increases in the number of people needing assistance occurred at the same time the capacity to finance social welfare services significantly decreased. Utilizing the latest definition, this paper measures the magnitude of poverty, examining the impact of social assistance programs. Policy simulations suggest that better targeting of the poor would generate a significant reduction in the incidence of poverty.

Date: 1995
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