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Effects of macroeconomic trends on social security spending due to sickness and disability

Author

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  • Khan, J.
  • Gerdtham, U.-G.
  • Jansson, B.

Abstract

Objectives. We analyzed the relationship between macroeconomic conditions, measured as unemployment rate and social security spending, from 4 social security schemes and total spending due to sickness and disability. Methods. We obtained aggregated panel data from 13 Organization for Economic Cooperation and Development member countries for 1980-1996. We used regression analysis and fixed effect models to examine spending on sickness benefits, disability pensions, occupational-injury benefits, survivor's pensions, and total spending. Results. A decline in unemployment increased sickness benefits spending and reduced disability pension spending. These effects reversed direction after 4 years of unemployment. Inclusion of mortality rate as an additional variable in the analysis did not affect the findings. Conclusions. Macroeconomic conditions influence some reimbursements from social security schemes but not total spending.

Suggested Citation

  • Khan, J. & Gerdtham, U.-G. & Jansson, B., 2004. "Effects of macroeconomic trends on social security spending due to sickness and disability," American Journal of Public Health, American Public Health Association, vol. 94(11), pages 2004-2009.
    • Handle: RePEc:aph:ajpbhl:2004:94:11:2004-2009_8
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    Cited by:

    1. Omer Ali Ibrahim & Sonal Devesh, 2020. "Socio-economic Dynamics of Social Insurance in Oman: A Model Approach," International Journal of Economics and Financial Issues, Econjournals, vol. 10(2), pages 37-47.
    2. Sorin BELEA & Ciprian PANZARU, 2012. "Factors Influencing The Deficit Of Social Security Systems," Romanian Statistical Review, Romanian Statistical Review, vol. 60(10), pages 35-56, October.
    3. Jahangir Khan & Clas Rehnberg, 2009. "Perceived job security and sickness absence: a study on moral hazard," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 10(4), pages 421-428, October.

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