Social investment in the baltic states: Benefits against poverty and the distribution of social risks over the life course

Abstract

Prevention against social risks through investment in human capital serves as the main focus of social investment. The social investment perspective suggests that social protection benefits should ensure adequate income maintenance over the life course. The goal of the current study is twofold: to analyze the role of social benefits that protect against poverty and to examine the distribution of social risks over the life course with a focus on social investment in the Baltic States, drawing on microdata from EU-SILC 2015. In addition, the study uses Eurostat data to explore spending on social protection and investment in human capital, classified as “Old” and “New” risks, during 2005-2014. The findings of the study suggest that low spending on social welfare in the Baltic States cannot adequately guarantee income for the population at risk, or reduce dependency on welfare state benefits.