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No. 49. SOCIAL INSURANCE SYSTEM OF GREECE: A COMPARISON WITH BRITISH, AMERICAN AND SPANISH SOCIAL SECURITY SYSTEMS. AN ECONOMETRIC MODEL

Published in STUDIES

F. Zervou. 2001. | ISBN: 960-341-041-1

 

The present study describes the development of the institution of social security in Greece; the present situation (the year 1997) and problems of the main and complementary social insurance, as well as some general proposals are mentioned for consideration. These are tested by comparing the Greek system with other systems and with the experience from other countries.


The comparison of the Greek social insurance system with the British, American and Spanish systems leads to the conclusion that the Greek social insurance system needs reform, in particular, a substantial change in the pension scheme.

 

The measures, which must be taken in order to reform the Greek pensions scheme must be carefully examined and carefully assessed before they are implemented. Because policy changes in pensions - which are the main determinant (70%) of all social benefits expenditure - and their financing influence economic decisions and behaviour throughout the economy.

 

For this reason, there is an advantage for Greece to have an empirical evidence for such macroeconomic effects, by implementing policy simulation exercises in a macroeconomic model.

 

An econometric model has been developed for the social insurance system of Greece, which enables a link between the social insurance and macroeconomic system and is suitable for exploring the effects of the insurance changes on the Greek economy. The philosophy and structure of this model is a modification of the Swedish model to reflect the principals and reality of the Greek economy.


The Greek econometric model highlights the direct and indirect effects, resulting from an increase or decrease in pension benefits and/or in employer contributions on the macroeconomic dimensions. Hopefully, this econometric model may help in estimating the effects of policy changes regarding the economics of the main and complementary social insurance. This satisfactory model will be a useful tool for economic planning and decision making and for a large variety of policy purposes.