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

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.