Ireland's policy of social expenditure aims to "alleviate the worst forms of poverty while spending as little as possible", according to the author of a report for the Combat Poverty Agency.
Dr Virpi Timonen, of Trinity College Dublin, who wrote the report, said services' expenditure on families and older people was among the lowest in Europe.
The findings of Dr Timonen's report, Irish Social Expenditure in a Comparative Economic Context, were launched yesterday.
Among the findings was that the majority of social expenditure goes on cash benefits rather than services for families or the elderly.
The report says 45 per cent of social benefit funds are spent on sickness, healthcare and disability, 25 per cent on the elderly and 13 per cent on families and children.
Unemployment benefits account for just over 11 per cent of Ireland's social expenditure, while housing receives 5.4 per cent of total social benefits.
Ireland spends less on old age than any other EU country. Italy spends 64 per cent of total social benefits on the elderly.
Finland spends the second least amount of money on the elderly, with 35.1 per cent expenditure.
In contrast, Ireland is proportionately the second biggest spender on sickness, health and disability benefits, with Portugal spending the most at 45.6 per cent.
This compares with Greece, which only spends 31 per cent of social benefits in this area.
Dr Timonen argues that increased spend on services for children and young people would lead to greater equality in employment, while spending on the elderly must increase to prepare for a "drastic ageing" of Ireland's population in about 20 years' time.
Expenditure on services such as childcare needed to be increased she said, adding that "the Government cannot rely on women to provide services for free anymore. Either the Government or the market have to provide them now."
Dr Timonen is calling for lesser emphasis on means testing and greater emphasis on service spending, such as creche facilities or child residential services.
"Means testing creates work disincentives," Dr Timonen told The Irish Times last night.
"They need to be readjusted so that they help and enable people to enter the labour market, rather than act as a disincentive," she said.
"People are unwilling to go out and get a job if it means they will lose their benefits.
"The market income is extremely unequal, with the lowest 30 per cent in Ireland earning only 6 per cent of market income, while the richest 30 per cent of Irish earners are earning 60 per cent of the market income."