Macroeconomic variables influencing housing prices in Vilnius

The way macroeconomic variables such as unemployment/GDP per capita/inflation/wages/internal migration influenced housing prices (nominal house prices and housing rent prices) in Vilnius in 2006–2019 has been investigated in the research. Conditions under which different macroeconomic variables could influence housing prices were established in the research. Lower unemployment, higher GDP per capita and inflation rate were all related to higher nominal house prices in Vilnius. Higher GDP per capita, wages and internal migration were positively related to housing rent prices in Vilnius. Analyzed macroeconomic variables all together explained 88 percent of variance of nominal house prices in Vilnius over the period of 2006–2019 and 80 percent of variance of housing rent prices in Vilnius over the same period. First published online 02 December 202

Asset-based approach to poverty reduction in Lithuania

This paper reviews the articles of Lithuanian authors on social policy topic and assesses if the asset-based policy topic was ever explored. It briefly analyses the efficiency of current social security policy in Lithuania and social-economical state of inhabitants. It states that in order to reduce poverty and inequality, current social policy should be reformed, and the current income support (or income security) policy should be replaced by the asset-based policy which stresses the development of skills, knowledge and capabilities, promotes savings, investments and building of assets and gives everyone a possibility to become a capital owner. The paper presents results of a representative survey which was aimed to explore Lithuanian inhabitants’ opinion towards the new form of social policy: asset-based policy. It uncovers that vast majority of Lithuania's inhabitants would agree to the implementation of the asset-based policy, based on children's savings accounts

The concept of basic income: global experience and implementation possibilities in Lithuania

The article gives an overview of universal basic income as one of the instruments of the asset-based policy, analyses its theoretical concept and practical examples. Latest trends in Europe, especially in Finland and Switzerland, are overviewed and possibilities to implement such an instrument in Lithuania are evaluated. Research methods of scientific literature analysis, comparative and logical analysis of statistical data, data grouping and presentation were used. Article finds out that the concept of basic income is being implemented on a small scale in the US state of Alaska and in a small autonomous territory of China – Macao. Finland and Switzerland are determined to fully implement the concept of basic income by providing monthly benefits to all their citizens. Although Lithuania is categorized as a country with high income inequality and high level of poverty risk, currently it is not possible to implement the concept of basic income in Lithuania: the state social insurance fund budget would not be able to fund sufficient benefits, and the benefits that could be provided by the budget would not comply with the objectives of the concept of basic income

Impact of income inequality on emigration: case of Lithuania and other new EU member states

Purpose – The objective of the article is to analyze how income inequality affects population decisions on emigration. Research methodology – Correlation and regression analysis are used to determine the relationship between the analyzed social phenomena. Firstly, the correlation between income inequality (its change) and emigration rates is calculated. Secondly, the static and dynamic aspect is evaluated, as well as the influence of data delay (lag) on decision-making. Finally, a regression equation is constructed showing how one variable affects the other. Findings – The analysis identifies the conditions and severity of population income inequality that may influence their emigration decisions. On the one hand, the impact is stronger in the crisis and post-crisis period, and, on the other, in the new EU member states. Research limitations – Sensibility of emigration to different conditions like accessibility (i.e. the opportunity to emigrate freely, such as being a member of the Schengen area) and the income gap between countries of origin and destination is a major limitation of the article which should be examined more closely in later works. Practical implications – The analysis of emigration problem and the identification of its possible links with income inequality would allow economists to assess a priori potential of various measures suggested in practice and, consequently, would allow for more targeted formulation of the State economic policy. Originality/Value – The novelty of the article is defined by insufficient scientific research of relationships between income inequality and emigration as socio-economic phenomena within the new EU member states. A scientific analysis of the problem of emigration and the identification of its possible links with income inequality would contribute to a more detailed study of the scientific aspects of emigration and income inequality

Macroeconomic variables influencing life satisfaction in the EU, and its impact on emigration

Purpose of the research is to analyse what variables influence subjective well-being (which is measured as overall life satisfaction in the EU) and how it affects population’s decisions on emigration. Research methodology – a correlation between several independent variables and overall life satisfaction is calculated. Then, a correlation between overall life satisfaction and emigration rates is measured. Finally, regression equations are constructed showing how some variables affect the other. Findings – analysis helped to identify key variables which influenced overall life satisfaction and its impact on population’s decisions on emigration. Those key variables include GDP per capita, income inequality and unemployment. Research limitations – to analyse more social phenomena and not only the economic ones would contribute to research development in the future. Moreover, analysis of dynamic aspects would provide deeper insight of relationships. Practical implications – the analysis of emigration problem and the identification of its possible links with life satisfaction will allow economists to assess a priori potential of various measures suggested in practice and, consequently, will allow for more targeted formulation of the economic policy. Originality/Value – scientific analysis of life satisfaction enables to have a new look on emigration problem in theory and practice

Impact of housing affordability and other socioeconomic variables on internal migration in Lithuania

The way housing affordability/wages/unemployment influenced internal migration of the population in Lithuania within the period of 2005−2019 is being analyzed in the article. Correlation-regression analysis is used to determine the relationships between the analyzed social phenomena. First, the correlation between housing affordability/wages/unemployment (their changes) and internal migration indicators is calculated, and the impact of data delays is assessed. Later simple and multiple regression equations are constructed. The conditions under which and how strongly housing affordability/wages/unemployment can influence population migration decisions have been identified in the analysis. Higher affordability of housing/wages is positively related to the number of people who moved to a certain Lithuanian city from other places in Lithuania per year. On the contrary, negative dependence of the number of people who moved to a certain city from other places in Lithuania on the unemployment rate in the city where those people moved in have been recorded. Both, affordability of housing and the unemployment rate explain actually 73−88 percent of variable dispersion of the internal migration in Vilnius, Kaunas and Klaipėda