The Role of the State in Providing Minimum Welfare Through Universal Basic Income and Social Security Mechanisms

Neverauskienė Laima Okunevičiūte (), Webster Emilija () and Andriušaitienė Daiva ()
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Neverauskienė Laima Okunevičiūte: Lithuanian Centre for Social Sciences, Vilnius, Lithuania; Faculty of Business Management, Vilnius Gediminas Technical University, Vilnius, Lithuania
Webster Emilija: Faculty of Business Management, Vilnius Gediminas Technical University, Vilnius, Lithuania
Andriušaitienė Daiva: Faculty of Business Management, Vilnius Gediminas Technical University, Vilnius, Lithuania

Economics and Culture, 2025, vol. 22, issue 1, 97-107

Abstract: Research purpose. Universal Basic Income (UBI) is a noteworthy social and economic model that reduces absolute poverty, improves people's physical and mental well-being, and has a positive impact on the labour market. It could serve as an alternative to the increasing need to adjust, reform, and enhance current social protection systems to ensure at least minimal welfare guarantees through them. The aim of this article is to evaluate whether the state's efforts to ensure minimum welfare and the expectations of the Lithuanian population regarding the state's role in securing socio-economic stability can be regarded as prerequisites for the introduction of a Universal Basic Income (UBI) as an alternative to the existing social security system. Design / Methodology / Approach. The article is structured around the following research methodology: scientific literature on UBI as an alternative measure to the social security system, correlational and regression analysis, quantitative research, summary of research findings, and conclusions. Findings. European countries strive to ensure at least a minimum level of well-being for their citizens. When looking for solutions to do this, there are two possible alternatives - to improve the social security system or to introduce UBI. This means making a radical decision on the method of ensuring minimum well-being. In both cases, it is necessary to consider state spending. Currently, the state's contribution to ensuring well-being includes not only government spending on monetary social support for people with the lowest incomes but also for those receiving the minimum and average wages. The expectations of Lithuanian residents regarding the provision of minimum well-being are thus focused on the state. Originality / Value / Practical implications. The results of the study presented in the article suggest the need to intensify the debate on the introduction of UBI in Lithuania to reduce poverty in the most economically disadvantaged households. Two main alternatives exist: improving the current social protection systems (which is a more costly option in terms of cost-effectiveness due to inefficient administrative expenses) or introducing Universal Basic Income (UBI), which is a relatively cheaper option from an administrative standpoint. While the second alternative is not without its drawbacks, it is certainly worthy of at least theoretical discussion regarding the feasibility and potential of a phased introduction of UBI across the entire EU.

Keywords: Minimum well-being; national government expenditure; social support; unemployment; resilience; UBI (search for similar items in EconPapers)
JEL-codes: H53 H59 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:vrs:ecocul:v:22:y:2025:i:1:p:97-107:n:1008

DOI: 10.2478/jec-2025-0008

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