Impact of Financialization on Income Inequality in Aspect of Welfare

Recently income inequality has been growing in many countries, and it is one of the biggest economic and social problems. The International Monetary Fund, the Organization for Economic Co-operation and Development (OECD), and other organizations stress the importance of this issue. According to Atkinson, Brandolini (2009), changes in income inequality show whether a particular society becomes more egalitarian over time or not, in which socio-economic direction it progresses.Even countries with similar economic structures differ in the level of income inequality and, according to Stiglitz (2015), differences in income inequality are related to policy decisions. The decisions of countries may depend on the prevailing view if markets are efficient or inefficient. In the first case, countries tend to rely more on neoliberal economic doctrine, and in the second, on the welfare state, where the role of government is more active (Stiglitz, 2017). However, it is observed that the growing income inequality is related to the growing role of the financial market, i.e. the phenomenon of financialization, which weakens the role of government. Thus, assessing the impact of financialization on income inequality is an actual topic of scientific debate.The results of studies, assessing the impact of financialization on income inequality, are mixed. Some financialization dimensions, such as financial liberalization, banking / financial crises increase income inequality, but microfinance intensity reduces income inequality. The contradictory results can be explained by the fact that research samples differ, various indicators reflecting the financialization are used, different independent variables are included in the regression equations.Studies have also been conducted in groups of countries that belong to different welfare state regimes (Josifidis, Mitrović, Supić, Glavaški, 2016; Dafermos, Papatheodorou, 2013). These studies emphasize that the level of income inequality is related to the efficiency of the social security system, i.e. income inequality is lower in Social–democratic welfare state regime (inherent universal social services and benefits) and Conservative–corporatist welfare state regime (social security model related to employment status) groups of countries than in the Mediterranean welfare state regime (characterized by the fragmentation of the social security model) and Liberal welfare state regime (inherent the specificity of the social security model, there is no universality) groups of countries. However, there is a lack of research that assesses the impact of financialization on income inequality in different welfare state regime groups of countries. The research problem: what is the impact of financialization on income inequality, is this impact the same in different EU welfare state regime groups? The object of the research - the impact of financialization on income inequality. The aim of the research is to assess the impact of financialization on income inequality in EU country groups.Research methods: analysis of scientific literature, grouping, generalization, regression analysis of panel data.When assessing the impact of financialization on income inequality in different welfare regimes EU country groups during the period 1998-2017, the least-squares regression analysis method of the panel data was used. The conducted research confirms the hypothesis and clearly shows that financialization, measured both by financial development index and domestic credit to the private sector, increases income inequality in all groups of countries. Thus, it shows that the role of the financial market is growing and financialization processes are contributing to the growth of income inequality in all groups of welfare regime countries and may reduce the role of government. These results are in line with Stiglitz, 2012; Razgūnė, 2017; Dünhaupt, 2014; Golebiowski, Szczepankowski, Wisniewska, 2016; Palley, 2008) who analyzed the relationship between financialization and growing income inequality. However, the study of Dabla-Norris et al. (2015), by contrast, find that the ratio of domestic credit to GDP in developed countries reduces income inequality.

The practice of imposing administrative fines by the State Data Protection Inspectorate in the context of other EU Member States

The implementation of the EU General Data Protection Regulation (hereinafter referred to as the Regulation), which, among other things, aims to eliminate disparities between national systems and to alleviate unnecessary administrative burdens, began on 25 May 2018. Each Member State is to ensure that there is one or more independent public authorities (hereinafter referred to as the supervisory authority) responsible for monitoring the implementation of the Regulation. In Lithuania, personal data protection is supervised by two authorities, namely by the State Data Protection Inspectorate (hereinafter referred to as the SDPI) and by the Office of the Inspector of Journalist Ethics. The powers conferred on the supervisory authorities by the Regulation are greater and broader in scope than those granted under previous data protection legislation. Organizations which process personal data must ensure compliance with the requirements laid down in the Regulation. A supervisory authority that violates the provisions of the Regulation may be faced with heavy administrative fines and other sanctions. This article analyzes the practice of imposing administrative fines in the EU and in Lithuania as compared to other EU Member States. The author of the article believes that evaluating the practice of imposing administrative fines by the SDPI within the general context of the EU shall enable one to search for the reasons behind the current situation, as well as to improve the processes the SDPI employs to perform functions associated with data protection supervision. The article uses generalization and comparative analysis of scientific literature, legal documents and statistical data.

Effect of Foreign Direct Investment on Growth-Unemployment Nexus

This paper examines the effect of foreign direct investment (FDI) on the growth-unemployment nexus. A review of previous contributions on Okun’s law uncovered which aspects of international relations are more prone to affect growth-unemployment nexus. It was found that inward FDI and outward FDI are most likely to affect this nexus. EU-28 panel data and interactive model with pooled OLS estimator were used to empirically test whether both inward and outward FDI moderates the relationship between growth and unemployment. The estimations showed that, as expected, FDI weakens the effect of growth on unemployment. Moreover, with an increase in FDI, the effect of growth on unemployment becomes less statistically significant.

Can remote work during COVID-19 pandemic strengthen the link between workload and workaholism?

The aim of the present study was to investigate the role of the way of doing work for the relationship between workload and workaholism during COVID-19 pandemic. A total of 668 employees working in different Lithuanian organizations participated in a study. A sample included employees who worked in the workplace (n = 331), as well as those who worked completely from home (n = 337). The levels of workaholism were measured using DUWAS-10 (Schaufeli et al., 2009). Workload was assessed with the help of the Quantitative Workload Inventory (QWI; Spector & Jex, 1998). It was revealed in a study that the higher levels of workload experienced by employees were related to the increased workaholism. It was further found that the positive relationship between workload and worka­holism was stronger in the group of complete remote workers. Overall, the findings support the idea that remote work is an important variable increasing a risk for workaholism especially for those employees who experience a heavy workload. Therefore, the ways of doing work must be considered when addressing well-being of employees.

Assessment of the Impact of Factors Determining the Teachers’ Salary: the Case of Radviliškis District

Based on the results of the theoretical analysis, problems such as the aging population of teachers, the lack of attractiveness of the teaching profession and the shortage of teachers in certain subjects have been identified in the education system, as well as in some geographical areas. The recent reform of the teacher’s payment system in Lithuania was started in 2018, so the problem analysed in the article is relatively new, which leads to a lack of research, as apart from some statistics, analysts’ insights and forecasts, scientific research on this topic is insufficient. In this study, an independently pooled cross-sections model is used to assess the factors of teachers ’salaries. The results of the research show that after the introduction of the full- time payment system, the salaries of teachers in Radviliškis district did not increase. This was due to the reduction in the size of the workload following the introduction of the full- time payment system.

Influence to the Audience as a Communicative Function in Brand Management

Relevance and problem of the topic. Exploring the influence of brand communication on different audiences is a complex and responsible process because the same communicated message to different audiences can be understood differently. An improperly communicated message may not reach the audience, be misunderstood, or provoke a hostile reaction, however, a properly chosen communication message may have the desired influence to the audience. How to communicate with different audiences and what methods to choose are especially important in today’s rapidly changing context.The problem analyzed in this article can be defined by the following questions: How to communicate with the audience? What influences to choose from? Based on this information, it will be possible to continue research in the field of public relations management to reveal the influence of brand communication on the audience, it can help brands to gain a competitive advantage in the markets and create greater added value.Problems. It is not entirely known what impact brand communication has on audiences. It is important for brands not only to create a brand image but also to find and choose the most appropriate ways to communicate with the audience so that individuals receive the communication message sent to them in the most acceptable and understandable ways. Improper communication, inaccurately chosen methods of communication with the audience can lead to undesirable consequences. The message sent by the brand can be misunderstood and interpreted, it can lead to undesirable negative consequences and cause reputational crises, leading to significant psychological, social, financial losses. Properly selected communication can help brands gain a competitive edge in the markets and create greater added value.Objective. To review and analyze the ways of brand’s communication, which aims to influence the audiences.The object: the influence of communication in brand managementTasks: 1) To analyze the concept of the brand; 2) To analyze the concept of the audience; 3) To review the ways of brand communication influence.Methods of comparative theoretical analysis and synthesis of the literature, generalization.Brand management consists of the role of the brand and the symbolic elements of the brand (brand name, logo, text). The brand is the most durable asset of the company. Good results are achieved by companies that are able to choose a brand strategy that meets consumer expectations. Brands can also make the influence by creating compelling knowledge and news by communicating in ways that reduce cognitive stress. In order to influence other people, it is possible to do so by appealing to the feelings of the audience, realizing the main emotions - anger, fear, sadness, feeling of happiness, disgust. It is important to monitor what kind of emotions brand communication causes to the audience, pay attention to the feedback. An audience can be interpreted as everything that an individual or organization communicates. In order to present news to the audience as convincingly and persuasively as possible, it is important to segment the audience and create a description of the target user.

The Management of Strategic Change in the Municipal Public Library

Public libraries, which are undergoing technological and socio-cultural changes, today become centres of socialization of communities, creating social and cultural well-being, therefore, their effective management becomes the object of research. This is also relevant in the implementation of public policy: strategic documents (“Europe 2030”, “Lithuania 2030”), which guide public sector bodies to achieve a sustainable economy, also actualize the ability to anticipate the necessary changes in the organization.In addition to the usual long-term strategic goals (providing high-quality various services, programs, resources to people of all ages; developing existing collections; creating an environment that responds to community needs and promotes creativity), municipal libraries aim to strengthen the institution’s management and develop local communities. Due to COVID-19, the revised strategic plans of public libraries of the Republic of Lithuania have made the accessibility aspect of services even more relevant. Long-term goals testify to the need for strategic change, at the same time raise the problematic questions: what are the essential aspects of science in the management of strategic change in the municipal public library? What is the situation of strategic change management in Lithuanian municipal public libraries? The research aims to practically investigate the situation of strategic change management in Lithuanian municipal public libraries and to discern the aspects to be improved.Based on the scientific literature, we define strategic change as significant fundamental changes in the organization aimed at positive change: to eliminate shortcomings, negative consequences and take on new challenges inherent in the organization’s strategy. They are always linked to the strategic goals of the organization, are changing or touching the entire organization, requiring strategic and change management competencies.The strategic changes implemented in the libraries of the Republic of Lithuania in this decade are more attributable to adaptation or evolution, as there are changes in sustainable growth. According to the hierarchical structural model, strategic administrative (changes in management structures, processes) or strategic functional changes (e.g. changes in personnel, financial management strategy, etc.) are usually initiated in the municipal public libraries themselves. Strategic political and strategic changes in work are mainly driven by politicians. Strategic change requires leadership at all levels of an organization’s governance and is generally seen as a significant factor in increasing employees’ commitment to change.The management of strategic change in libraries as a process has much in common with the management of strategic change in other public sector institutions. Their management in libraries is influenced by external and internal factors, in particular public policy. Among the internal factors for municipal public libraries, the process of managing changes, in general, is important, as it was common practice in Lithuanian municipalities to work in accordance with the municipal cultural policy strategy without developing a separate strategy for the development of their own, separate institution. In the current context of increasing decentralization of governance, it is increasingly the responsibility of libraries to take the initiative and take care of the long-term goals of the organization.The public libraries of two neighbouring municipalities (Akmenė district and Mažeikiai district) were selected for the research, a strategy of mixed methods was applied, combining qualitative research methods (content analysis of documents) and quantitative research methods (total questionnaire survey of both library employees except director and deputy director using apklausa.lt, after receiving participants’ consent via e-mails).Having analysed the strategic plans and activity reports of the years 2011–2021 of public libraries in municipalities of Akmenė district and Mažeikiai district, it was revealed that the most important strategic changes in the recent period correspond to the guidelines of Lithuanian cultural policy (2010) and were mostly technological changes or technological-organizational: related to building reconstructions, renovations; with the digitization of administrative management and services; with the socialization of socially excluded groups, with the increase of digital literacy of communities through education, etc. The documents testify that the public library in Mažeikiai district, during the research, already had its own strategic plan, while the public library in Akmenė district, was developing its first strategy. Different experiences of strategic management have also led to partly different expressions of strategic change management in libraries. The library in Mažeikiai district constantly performs the analysis of external factors, while the library in Akmenė district yet only intends to do so. Among the external factors, the project activities carried out by Martynas Mažvydas National Library of Lithuania, including public libraries, are important in both cases. By strategizing activities, both libraries conduct the performance analysis using SWOT, highlighting similar weaknesses (limited funding for modernization), strengths (systematically training staff, modernized public library infrastructure, strong collaborative relationships with other public and county libraries).Wider cooperation with business is not yet visible. The library in Akmenė district sees the consideration of the needs of stakeholders and the use of social partners’ resources as an opportunity, whereas the library in Mažeikiai district is already planning more active partnership relations, also with Lithuanian and foreign libraries.After conducting the opinion research of the employees of public libraries in Akmenė district and Mažeikiai district, the following most important aspects of the management of strategic changes in the studied municipal public libraries have been revealed:Situation – libraries undergo strategic changes initiated by external institutions through programs and projects; they have experience in implementing strategic change, communicating the results of change; there is no resistance to innovations in libraries; employees begin to be involved in strategic change management through separate sub-processes, while for the time being, managers take the lead in strategic change management; organizations lack a deeper understanding of strategic change, the competencies to initiate them involving the entire library community. Potential – employees would like to be more involved in the management of strategic change: 1) relatively good internal communication about already implemented (mostly project-based) strategic changes is revealed; 2) over 10 percent of employees are already involved in managing strategic change; 3) half of the surveyed employees feel able to offer ideas for innovations and strategic changes, the other 50 percent of employees feel “not invited” to do so; 4) Most staff feel ready to take on good practice from other (including foreign) institutions.This research has confirmed the insights of scholars and cultural strategists that public libraries today are undergoing tremendous change, making long-term perspective knowledge and strategic planning a necessity in every organization. With the growth of decentralization of management as well as the uncertainty due to global changes, in the public sector this is achieved through greater involvement of the community in governance and inter-institutional cooperation. Leadership alone is not enough.This research shows that municipal public libraries have the potential to initiate and manage strategic change themselves, as they have been involved in the implementation of changes initiated by external institutions for 10 years, there is no anti-change attitude in organizations. On the other hand, there is a lack of experience and competencies to anticipate change, initiate change, motivate employees to get involved themselves. This research also raises the debate questions that require broader research: Knowing that municipal public libraries are accustomed to working according to the programs, projects and plans coming from above, the question arises whether the current 2016-2017 legislation on improving library management approved by the Minister of Culture of the Republic of Lithuania is effective and meets today’s challenges; why there is no methodological assistance to public libraries on how to improve their management. What governance structure of municipal public libraries would be conducive to increasing staff involvement in strategic change management? What managerial innovations would increase employee motivation to initiate change?

The Management of Strategic Change in the Municipal Public Library

Public libraries, which are undergoing technological and socio-cultural changes, today become centres of socialization of communities, creating social and cultural well-being, therefore, their effective management becomes the object of research. This is also relevant in the implementation of public policy: strategic documents (“Europe 2030”, “Lithuania 2030”), which guide public sector bodies to achieve a sustainable economy, also actualize the ability to anticipate the necessary changes in the organization.In addition to the usual long-term strategic goals (providing high-quality various services, programs, resources to people of all ages; developing existing collections; creating an environment that responds to community needs and promotes creativity), municipal libraries aim to strengthen the institution’s management and develop local communities. Due to COVID-19, the revised strategic plans of public libraries of the Republic of Lithuania have made the accessibility aspect of services even more relevant. Long-term goals testify to the need for strategic change, at the same time raise the problematic questions: what are the essential aspects of science in the management of strategic change in the municipal public library? What is the situation of strategic change management in Lithuanian municipal public libraries? The research aims to practically investigate the situation of strategic change management in Lithuanian municipal public libraries and to discern the aspects to be improved.Based on the scientific literature, we define strategic change as significant fundamental changes in the organization aimed at positive change: to eliminate shortcomings, negative consequences and take on new challenges inherent in the organization’s strategy. They are always linked to the strategic goals of the organization, are changing or touching the entire organization, requiring strategic and change management competencies.The strategic changes implemented in the libraries of the Republic of Lithuania in this decade are more attributable to adaptation or evolution, as there are changes in sustainable growth. According to the hierarchical structural model, strategic administrative (changes in management structures, processes) or strategic functional changes (e.g. changes in personnel, financial management strategy, etc.) are usually initiated in the municipal public libraries themselves. Strategic political and strategic changes in work are mainly driven by politicians. Strategic change requires leadership at all levels of an organization’s governance and is generally seen as a significant factor in increasing employees’ commitment to change.The management of strategic change in libraries as a process has much in common with the management of strategic change in other public sector institutions. Their management in libraries is influenced by external and internal factors, in particular public policy. Among the internal factors for municipal public libraries, the process of managing changes, in general, is important, as it was common practice in Lithuanian municipalities to work in accordance with the municipal cultural policy strategy without developing a separate strategy for the development of their own, separate institution. In the current context of increasing decentralization of governance, it is increasingly the responsibility of libraries to take the initiative and take care of the long-term goals of the organization.The public libraries of two neighbouring municipalities (Akmenė district and Mažeikiai district) were selected for the research, a strategy of mixed methods was applied, combining qualitative research methods (content analysis of documents) and quantitative research methods (total questionnaire survey of both library employees except director and deputy director using apklausa.lt, after receiving participants’ consent via e-mails).Having analysed the strategic plans and activity reports of the years 2011–2021 of public libraries in municipalities of Akmenė district and Mažeikiai district, it was revealed that the most important strategic changes in the recent period correspond to the guidelines of Lithuanian cultural policy (2010) and were mostly technological changes or technological-organizational: related to building reconstructions, renovations; with the digitization of administrative management and services; with the socialization of socially excluded groups, with the increase of digital literacy of communities through education, etc. The documents testify that the public library in Mažeikiai district, during the research, already had its own strategic plan, while the public library in Akmenė district, was developing its first strategy. Different experiences of strategic management have also led to partly different expressions of strategic change management in libraries. The library in Mažeikiai district constantly performs the analysis of external factors, while the library in Akmenė district yet only intends to do so. Among the external factors, the project activities carried out by Martynas Mažvydas National Library of Lithuania, including public libraries, are important in both cases. By strategizing activities, both libraries conduct the performance analysis using SWOT, highlighting similar weaknesses (limited funding for modernization), strengths (systematically training staff, modernized public library infrastructure, strong collaborative relationships with other public and county libraries).Wider cooperation with business is not yet visible. The library in Akmenė district sees the consideration of the needs of stakeholders and the use of social partners’ resources as an opportunity, whereas the library in Mažeikiai district is already planning more active partnership relations, also with Lithuanian and foreign libraries.After conducting the opinion research of the employees of public libraries in Akmenė district and Mažeikiai district, the following most important aspects of the management of strategic changes in the studied municipal public libraries have been revealed:Situation – libraries undergo strategic changes initiated by external institutions through programs and projects; they have experience in implementing strategic change, communicating the results of change; there is no resistance to innovations in libraries; employees begin to be involved in strategic change management through separate sub-processes, while for the time being, managers take the lead in strategic change management; organizations lack a deeper understanding of strategic change, the competencies to initiate them involving the entire library community. Potential – employees would like to be more involved in the management of strategic change: 1) relatively good internal communication about already implemented (mostly project-based) strategic changes is revealed; 2) over 10 percent of employees are already involved in managing strategic change; 3) half of the surveyed employees feel able to offer ideas for innovations and strategic changes, the other 50 percent of employees feel “not invited” to do so; 4) Most staff feel ready to take on good practice from other (including foreign) institutions.This research has confirmed the insights of scholars and cultural strategists that public libraries today are undergoing tremendous change, making long-term perspective knowledge and strategic planning a necessity in every organization. With the growth of decentralization of management as well as the uncertainty due to global changes, in the public sector this is achieved through greater involvement of the community in governance and inter-institutional cooperation. Leadership alone is not enough.This research shows that municipal public libraries have the potential to initiate and manage strategic change themselves, as they have been involved in the implementation of changes initiated by external institutions for 10 years, there is no anti-change attitude in organizations. On the other hand, there is a lack of experience and competencies to anticipate change, initiate change, motivate employees to get involved themselves. This research also raises the debate questions that require broader research: Knowing that municipal public libraries are accustomed to working according to the programs, projects and plans coming from above, the question arises whether the current 2016-2017 legislation on improving library management approved by the Minister of Culture of the Republic of Lithuania is effective and meets today’s challenges; why there is no methodological assistance to public libraries on how to improve their management. What governance structure of municipal public libraries would be conducive to increasing staff involvement in strategic change management? What managerial innovations would increase employee motivation to initiate change?

Volunteering in Lithuania – the perspective of social capital

The level of social capital in society is one of the most important elements for the success of state development, which is increasingly emphasized on political agendas. In research, social capital covers a wide range of areas due to the interdisciplinarity of social capital. Still, the dominant components stand out: trust in society, trust in public authorities, involvement in civic activities. While trust in public authorities and trust in other members of society are more often used in research and heard in the media, civic activities often lack such interest. However, it is one of the most effective ways for government decisions to invest most effectively in improving social capital in society. The primary tool for the state to increase public involvement in civic activities is the promotion of voluntary activities, which contributes to the state’s sustainable development, and the creation of the welfare state is enshrined in international documents. With this article, the authors seek to examine the peculiarities of Lithuanian volunteering in the context of social capital formation. The aim is to: 1) examine the theoretical assumptions of the impact of volunteering on the formation of social capital; 2) study the expression of social capital and voluntary activity in the context of state performance evaluation indicators; 3) carry out empirical research (expert interview) examining the peculiarities of volunteering in Lithuania. It should be noted that some of the results of the empirical research were used in the report of the applied research “Development of Youth Volunteering in Lithuania” (prepared by the Lithuanian Council of Youth Organizations (LiJOT) project “Strengthening the Participation of the Lithuanian Council of Youth Organizations in Public Management Decision Making”). The development of volunteering and the improvement of social capital indicators are named Lithuania’s long-term strategic goals, but the indicators in international indices are low compared to other countries.The analysis of the results of the empirical research allows us to state that: 1) In Lithuania, volunteering is often treated in various ways, e.g., in connection with unpaid work or other activities which are not, in principle, activities carried out of the person’s own free will; outstanding long-term and short-term volunteering (up to 6 months); 2) organizers of voluntary activities (usually non-governmental non-profit organizations (NGOs)) lack managerial skills; 3) In recent years, Lithuania has started to develop long-term volunteering programs, which are associated with better social capital formation, and it is expected that this measure will help to improve the quality and indicators of volunteering, especially among young people.

Availability of social services for families with disabled children in the context of the welfare state

The phenomenon of the welfare state is characterized by complexity of indicators. To determine in which areas the country is closer to the welfare state, various areas of social policy are analysed. In this article, we set out to investigate one of them, i.e., the accessibility of social services for children with disabilities. The European Union ensures the basic preconditions for the well-being of children with disabilities and emphasizes the compatibility of health, social and educational services (European Commission, 2021). In addition, Member States are free to introduce specific measures for social inclusion (COM, 2021). The well-being of children with disabilities is inseparable from that of adults, usually the family in which the children live. Depending on the child’s disability, the family has to devote time to the child’s special needs, so opportunities to function in society, such as working and earning an income, become dependent on the social assistance received for the disabled child. Research shows that participation in labour market processes reduces the social exclusion of families with children with disabilities and improves quality of life indicators in general (Stefanidis & Strogilos 2020). However, analysis of good practice is more common, while information about the lack of services that parents face difficulties remains overboard. Thus, our research contributes to a better understanding of how families raising children with disabilities use state-provided social services and what solutions and measures are needed to improve the quality of life of children with disabilities and their relatives. The practical implications of our article are revealed through the possibility of more confidently shaping the decisions and measures of the welfare state.The article presents results of a survey of 68 families with disabled children. Our research was conducted in Druskininkai municipality which has typical infrastructure of social services for the disabled and their families in Lithuania.Our study has shown that social services in Lithuania poorly meet needs of families with disabled children. Though social inclusion is one of the most important features of the welfare state, the provision of social services to disabled and their families goes beyond the concept in Druskininkai municipality at least. Families have little information about social guarantees and support provided by the state and municipality. The families are limited to services reported by health care and education institutions. Moreover, the most significant problem hindering social integration of disabled and their families is a small portion of disabled children using services of day care centre. As a result, children suffer at risk of social exclusion while disabled children’s parents lack of opportunities to fully participate in the labour market.Based on the results of the study we state that increasing the availability of social services that meet the needs of families with disabled children is a necessary social policy solution, without which the development of a welfare state in Lithuania is hardly possible.