Relationship between Social Security Organization Insurance Expenditures, Unemployment Insurance Fund and Economic Growth in Iran

With the emergence of economic fluctuations and problems such as floods, earthquakes, coronas and economic sanctions, the importance of the role of the Social Security Organization and the Unemployment Insurance Fund to cover the needy has become more apparent. But the question is, to what extent can these two be effective in controlling unemployment, income distribution, welfare and social security of society, and in contrast, how much are they affected by macroeconomic variables? For this purpose and considering the theoretical relationship between these institutions and economic growth, the relationship between insurance expenditures of these institutions and economic growth in the period 1991 to 2019 ‌ in the form of a vector auto-regression (VAR) model was studied. The findings of this study confirm the existence of a long-term relationship between the expenditures of the two institutions and economic growth, so that the response of social security insurance expenditures to changes in GDP, although fluctuating and directional, but after three periods, toward fluctuations. Mira moves. In contrast, the growth response to social security spending shocks is very limited and inherited. The reaction of Unemployment Insurance Fund expenditures to changes and shocks in GDP is also more visible and with damp fluctuations.