Benefit-Cost Analysis of Reforming the Turkish Social Insurance Institution for the Self-Employed (Bağ-Kur)
AbstractThe purpose of this study is to estimate social benefits and social costs associated with a Feldsteinian-type gradual privatization of the Turkish Social Insurance Institute for Self –Employed Persons, “BK”. Based on data provided by the International Labor Organization, financial projections of the institution were made and extended to apply benefit cost model of privatization. Present value of the change in net social benefit was estimated. The effect of privatization on representative individuals has also been quantified. Results indicate that social benefits associated with a privatization alternative exceed the social costs even after adjustments for changes in key parameters that reduce social net benefits. However, privatization affects current representative individuals so negatively that it may constitute a “good political reason” to be against, rather than in favor of, choosing privatization.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 42108.
Date of creation: 2005
Date of revision:
Publication status: Published in METU Studies in Development 2.33(2006): pp. 169-206
social security; Bag-Kur; Turkey; privatization; benefit-cost analysis;
Find related papers by JEL classification:
- H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
- H5 - Public Economics - - National Government Expenditures and Related Policies
- J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
- D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
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