Analysis of Factors Affecting the Lost Resources of the Social Security Organization in Iran

Document Type : RESEARCH PAPER

Authors

1 Associate Professor, Department of Economics, Faculty of Economics and Administration Sciences, University of Mazandaran, Babolsar, Iran.

2 Master of Science in Economics Science, Department of Economics, Faculty of Economics and Administration Sciences, University of Mazandaran, Babolsar, Iran.

Abstract

Social security seeks to meet the needs of people in achieving adequate living conditions by redistributing income and providing services such as providing alternative income for disabled or retired employees and medical services. The goals of social security plans are achieved when the organization has sufficient resources to carry out its tasks. Accordingly, recognizing the factors affecting the lost resources of the Social Security Organization and how these factors affect, will help prevent a deficit in the resources of this organization. Therefore, the purpose of this paper is to analyze the factors affecting the lost resources of the Social Security Organization in Iran during the period 2013 to 2019. For this purpose, initially, using the micro data of household expenditure and income plan and using related indicators, the amount of resources lost was calculated descriptively and using the concept of informal employment. Preliminary processing of the data shows that the Social Security Organization has lost an average of 14.5% of its annual financial resources during this period. Then, the research model was estimated by dynamic panel data method and the estimation of generalized of Moments system in 31 provinces of the country. The results show that informal employment, economic structure (Value added ratio of industry to agriculture), unemployment rate and inflation have a direct impact on lost social security resources. The results of this study also show that the interactive effect of economic structure in border provinces on lost resources is inverse. Explaining that with the increase in the added value of the industrial sector compared to the added value of the agricultural sector in the border provinces, the lost resources of social security are reduced.

Keywords

References

Abdoli, G. (2006). The economics of social security in Iran: a case study of insurance income. Iranian economic research, 7(25), 65-82. (In Persian)
Abolhasani, M., Samadi, S. (2021). Investigating and analyzing the impact of employment in industry on income inequality. Journal of Stable Economy and Sustainable Development, 1(1), 1-24. (In Persian)
Binay, M. (2015). The laffer effect at Turkish social security administrations premium revenue. Procedia Economics and Finance, 26(2015), 592-597.
Binay, M., & Binay, S. (2017). The Relation between the Optimal Informal Employment Ratio and Improvement Level. New Trends and Issue Proceedings on Humanities and Social Sciences, 3(4), 260-264.
Blundell, R., & Bond, S. (1998). Initial Conditions and Moment Restrictions in Dynamic Panel Data Models. Journal of econometrics, 87(1), 115-143.
Canelas, C. (2014). Minimum Wage and Informality in Ecuador. (No. 2014/006). Wider Working Paper.
Dereli, T. (2011). Informal Employment in Turkey. Journal of Social Policy Conferences, (53), 65-82.
Elveren, A. (2015). The Impact of the Informal Employment on the Social Security Deficits in Turkey. World Journal of Applied Economics, 1(1), 3-19.
Gilak Hakimabadi, M., Zaroki, S., & Ezoji, H. (2019). The analysis of fiscal illusion and budgetary policy in selected developing countries using dynamic panel data. Quarterly Journal of Applied Theories of Economics, 6(1), 21-50. (In Persian)
Gutierrez, A. C. (2001). Principles and Practices of Social Security Reform. In IAA International Seminar on Pensions, International Social Security Association (ISSA), Brighton (pp. 1-13).
Hoseini, S. R. (2015). Measuring the benefits of tax resources and insurance premium in financing social security from the Islamic perspective. Journal of Tax Research, 22(24), 87- 112. (In Persian)
Iranian social security organization. (2005). Social security act with the latest amendments, Office of laws and regulations of the social security organization, Tehran. (In Persian)
Karimi, Z., Zaroki, S., & Ahmadi, Z. (2017). Estimation and Analysis of Revenues Lost in Social Security in the Informal Sector. Economic Development Policy, 5(1), 59-80. (In Persian)
Kimiagari, A., & Manuchehri Rad, R. (2011). Income redistribution in IRAN’s social security fund and the effect of inflation on it. Iranian Journal of Economic Research, 15(45), 139-180. (In Persian)
Lampman, R. (1968). The Investment of Social Security Reserves and Development Problems: The Philippines as a Case Study. The Role of Social Security in Economic Development. Washington, United States Government Printing Office.
Malyovanyi, M., Rolinskyi, O., & Lysa, N. (2016). Selected aspects of the social protection system’s financial security in the context of shadow economy. Економічний часопис- ХХІ, (158), 88-92.
Mashayekhi, M., & Riazi, M. (2004). Interaction between social security and employment in the years 1996-2001. Social Security Journal, 5(4), 61-84. (In Persian)
Motameni, M. (2019). Informal income estimation in Iranian manufacture industries. Journal of Economic Research (Tahghighat- E- Eghtesadi), 54(3), 771-786. (In Persian)
Nikpur, H. (2004). Estimation of Iran's underground economy with emphasis on insurance escape (1961-2001). Social Security Journal, 6(3), 131-158. (In Persian)
Nikupur, H., & Riazi, M. (2005). Social Security Organization and Economic Growth and Development. Social Security Journal, 6(4), 189-207. (In Persian)
Panahi, B. (2004). Social policy and social security (an approach to social security system conformity with market economy). Social welfare, 3(12), 13-39. (In Persian)
Re’is Jafari Motlagh, R. (2009). The survey of contributive items on financing in social security system (Case study: Effects of inflation on resources and expenditure of social security organization). Master Thesis in economics, Faculty of economics, University of Allameh Tabatabaei, Tehran. (In Persian)
Renani, M., Mirzaie, M., Arbabian, S. (2012). Informal Sector and Loss of Tax Capability (Case Study: Kohkilouye VA Boyer Ahmad Province). Economics Research, 12(44), 99-130. (In Persian)
Vodopivec, M. (2013). Introducing Unemployment Insurance to Developing Countries. IZA Journal of Labor Policy, 2(1), 1-23.
Stable Economy Journal
Volume 2, Issue 3 - Serial Number 4
September 2021
Pages 110-131

Files

Share

How to cite

Statistics