Effects of social security resources and expenditure on income inequality in Iran
Subject Areas : Health, Education, and Welfare EconomicsAsghar Hasanpour 1 , Karim Emami 2 , Morteza Ezzat 3
1 - Associate Professor, Department of Economics, Faculty of Management and Economics, Science and Research
2 - Associte Professor, Department of Economics, Faculty of Management and Economics, Science and Research Branch, Islamic Azad University, Tehran, Iran (Corresponding Author), karim_emami@yahoo.com
3 - Associate Professor, Faculty of Economics, Tarbiat Modares University, Tehran, Iran, mezzati@modares.ac.ir
Keywords: Resources and Expenditure of Social Security, Income Inequality, SVAR model. JEL Classification: G22, D63, H55,
Abstract :
Income inequality poses a major social challenge, and expanding social security is a key strategy to combat it. This study examines how social security resources and expenditures affect income inequality in Iran from 1988 to 2020 using the structural vector autocorrelation (SVAR) model. The results reveal a nuanced relationship between social security inputs and income inequality. An increase in general insurance resource initially decreases inequality but later returns it to its original state. On the other hand, an uptick in unemployment insurance resources causes a brief increase in inequality before it declines. Expenditures in both general insurance and unemployment insurance tend to reduce income inequality, with general insurance having a more substantial effect. These findings suggest that increasing unemployment insurance resources requires careful management to avoid worsening income inequality, while investing in general insurance resources shows a stronger potential to reduce it. Social security expenditure can be a powerful tool for reducing income inequality in Iran when applied thoughtfully.
- اخوان بهبهانی، علی و مسعودی اصل، ایروان (1396). اصول و مبانی تامین اجتماعی. موسسه عالی پژوهش تامین اجتماعی: تهران.
- التجايي، ابراهيم و سليمي، مهدي (1392). رابطه ميان مصارف بيمه¬هاي اجتماعي و رشد اقتصادي در ايران، پژوهشنامه بیمه، شماره 3، 147-170.
- اسدی، سمیه (1394). نقش نظام تامین اجتماعی در کاهش فقر و بهبود توزیع درآمد(مطالعه موردی اقتصاد ایران طی دوره 92-1380). پایانامه کارشناسی ارشد، دانشگاه پیام نور.
- تقی¬نژاد عمران، وحید، میلا علمی، زهرا و رمضان¬پور، مبین (1401). تاثیر متغیرهای سیاسی در رابطه میان حق¬الضرب و نابرابری درآمدی در کشورهای منتخب (D8 و OEDC)، فصلنامه مدلسازی اقتصادی، 58، 101-85.
- سبحانی، سهیلا، فطرس، محمدحسن، حاجی، غلامعلی و ترکمنی، اسماعیل (1401). تاثیر فناوری اطلاعات و ارتباطات در منابع تامین اجتماعی در ایران، فصلنامه مدلسازی اقتصادی، 58، 1-17.
- زارع، بیژن و اسدی، زهرا (1390). رابطه تامین اجتماعی با توسعه اقتصادی- اجتماعی در ایران، فصلنامه رفاه اجتماعی، 42، 105-67.
- صفایی، علی، سلاطین، پروانه، قویدل، صالح و صوفی مجیدپور، مسعود (1400). تاثیر هزینه¬های سازمان تامین اجتماعی بر همگرایی توزیع درآمد در استان¬ها: رهیافت اقتصاد سنجی فضایی، فصلنامه مدلسازی اقتصادسنجی، 6(6)، 39-9.
- مانی، کامران (1400). رابطه مصارف بیمه¬ای سازمان تامین اجتماعی، صندوق بیکاری و رشد اقتصادی در ایران، بررسی مسائل اقتصاد ایران، 2، 304-279.
- مهرگان، نادر و سالاریان، محمد (1387). اثر بیمه¬¬های اجتماعی بر نابرابری درآمد در ایران، فصلنامه رفاه اجتماعی، 8(30و 31)، 263-243.
- هادیان، ابراهیم و اسلامی‌اندارگلی، مجید (1395). اثرات رفاهی افزایش پوشش تأمین اجتماعی در اقتصاد ایران با استفاده از مدل تعادل عمومی قابل محاسبه. پژوهشهای اقتصادی (رشد و توسعه پایدار), 60(16), 154-135.
- Asadi, S. (2014). The role of the social security system in reducing poverty and improving income distribution (a case study of Iran's economy during the period 2010-2019). Master's thesis. Payam Noor University. (in Persian)
- Bastagli, F., Hagen-Zanker, J., Harman, L., Barca, V., Sturge, G., Schmidt, T., & Pellerano, L. (2016). Cash transfers: What does the evidence say? Overseas Development Institute.
- Behbahani, B. A., & Masoudi, A. Y. (2015). Basics and basics of social security. Higher Research Institute of Social Security: Tehran. (in Persian)
- Bräuninger, M. (2005). Social security, unemployment, and growth. International Tax and Public Finance, 12, 423-434.
- Bruce, N,. Turnovsky, J. Stephen. (2013). Social security, growth and welfare in overlapping generations economies with or without annuities. Journal of Public Economics, 101, 12–24.
- Chambers, D., & Dhongde, S. (2016). Convergence in income distributions: Evidence from a panel of countries. Economic Modelling, 59, 262-270.
- Docquier, F., & Paddison, O. (2003). Social security benefit rules, growth and inequality. Journal of Macroeconomics, 25(1), 47-71.
- Eltejaei, E., & Salimi, M. (2013). Social security costs and economic growth in Iran. Iranian Journal of Insurance Research, 2(3), 267-280. (in Persian)
- Fishback, Price V. and Valentina Kachanovskaya. (2010). In Search of the Multiplier for Federal Spending in the States During the Great Depression. Working Paper 16561. Cambridge, MA: National Bureau of Economic Research.
- Gechert, S., Paetz, C., & Villanueva, P. (2021). The macroeconomic effects of social security contributions and benefits. Journal of Monetary Economics, 117, 571-584.
- Ghilarducci, Teresa, Joelle Saad-Lessler, and Eloy Fisher. (2012). The Macroeconomic Stabilization Effects of Social Security and 401(k) Plans. Cambridge Journal of Economics, 36(1): 237-251.
- Hadian, E., & Andargoli, E. M. (2016). The Welfare Effects of Increased Social Security on the Iranian Economy: CGE Approac. The Economic Research (Sustainable Growth and Development), 60(16), 135-154. (in Persian).
- Helliwell, J. F., Layard, R., Sachs, J. D., & Neve, J. E. D. (2021). World happiness report 2021.
- International Monetary Fund (IMF) (2021). Fiscal Monitor, April 2021. Washington, D. C., International Monetary Fund (IMF).
- Klob, R. A., 1988. Economic and social aspects of retirement pensions, In: International Social Security Association: Economic and Social Aspects of Social Security Financing. Geneve, pp. 85-94.
- Koenig, Gary and Al Myles. (2013). Social Security’s Impact on the National Economy. Working Paper 2013-11. Washington, DC: AARP Public Policy Institute.
- Lee, D. J., & Cho, C. (2022). Public expenditures and inequality in Asia-Pacific: understanding the relationship.
- Lu, J. (2022). On the Impact of Social Spending on Long-term Economic Performance in the USA.
- Mani, K. (2022). Relationship between Social Security Organization Insurance Expenditures, Unemployment Insurance Fund and Economic Growth in Iran. Journal of Iranian Economic, 8(2), 277-304. (in Persian).
- McClanahan, S., Tran, A., Bailey-Athias, D., Kidd, S., & Langhan, S. (2018). Social protection at the centre of national development in Uganda: How social protection enhances other investments. National Planning Authority.
- Mehregan, N., & Salarian, M. (2008). The Impact of Social Insurances on Income Inequality in Iran, Social Welfare Quarterly, 8(30&3)1, 243-264. (in Persian)
- Nakamura, Emi and Jon Steinsson. (2014). Fiscal Stimulus in a Monetary Union: Evidence from US Regions. American Economic Review 104, 753-792.
- Safai, A., Salatin, P., Ghavidel, S., & Soufiajidpour, M. (2022). The Impact of Social Security Expenditures on Convergence of Income Distribution in Provinces: A Spatial Econometric Approach. Econometric Modeling, 6(5), 9-39. (in Persian)
- Shoag, Danial. (2010). The Impact of Government Spending Shocks: Evidence on the Multiplier from State Pension Plan Returns. Working Paper. Cambridge, MA: Harvard University.
- Sobhani, S., Fitras, M. H., Haji, G. A., & Turkmani, I. (1401). The impact of information and communication technology on social security resources in Iran. Economic Modeling, 58, 1-17. https://sanad.iau.ir/fa/Journal/eco/Issue/44183 (in Persian)
- Taghinjad, I. V., & MilaElmi, Z., Ramzanpour, M. (1401). The effect of political variables on the relationship between interest and income inequality in selected countries (D8 and OEDC). Economic Modeling, 58, 85-101. https://sanad.iau.ir/fa/Journal/eco/Issue/44183 (in Persian)
- Vincent, K., & Cull, T. (2009). Impacts of social cash transfers: Case study evidence from across southern Africa. 17.
- YU, L. R., & LI, X. Y. (2021). The effects of social security expenditure on reducing income inequality and rural poverty in China. Journal of Integrative Agriculture, 20(4), 1060-1067.
- Zare, B., & Asadi, Z., (2012). The Analysis of Socio-Economic Development Relationship with Social Security. Social Welfare Quarterly, 11(42), 67-106. (in Persian)