Social protection system's capacity to increase the real incomes of population

The article addresses the tools used by the social protection system to influence the standard of living in the Republic of Karelia. The relevance of the study is confirmed by the estimated negative prospects for the development of the Russian economy and the Russian labor market, as well as the growing rate of inflation, which leads to disappointing forecasts about the level and quality of life of Russian households. Social protection system could be a possible solution, because it can use both direct and indirect leverages to influence the level of material well-being of individuals and families. The authors conducted a sociological study by interviewing families which applied to the social protection institutions of the Republic of Karelia for help. The authors consider the views of low-income families on the possibilities to increase the households’ level of material security. The authors also investigated the possibilities of using social contract as a tool to fight the decline in living standards in the current turbulent economic situation. Based on the results of the study, the authors made some conclusions about the expansion of social support programs at the regional level and enhancing the awareness of the population about the possibilities of the social protection system.