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- W2155149713 abstract "A comprehensive reform of the social security system appears inevitable for the following reasons: life expectancy and the population are decreasing, the spread of diseases is increasing and a health insurance system based on contributions has not yet been established;the quality of many social security services is poor while simultaneously benefits are granted whose necessity are not convincingly substantiated;amongst the population there is little confidence in the social insurance system and this together with the very high total social insurance contribution rate of 49% of the gross wage encourages activity in the shadow economy; 1a uniform application of the eligibility criteria for social benefits appears to be lacking;to some extent social expenditures are overlapping and they are not sufficiently targeted at low-income households;although the social insurance system is part of the budget, its expenditures appear to be insufficiently coordinated with other government expenditures;there is a lack of regulations concerning the treatment of deficits/surpluses incurred by social insurances;the very high total social security contribution rate not only provides disincentives to work and save in the official economy but it also causes distortions in connection with the moderate rate of taxation of corporate profits (30%);the so-called ‘social sphere’ of enterprises, which is part of the social security system, impedes the mobility of both labour and capital, weakens the control of companies’ management and interferes with progress in privatisation. It is subsidised by the government, because expenditures on the social sphere are recognised as corporate operating costs;empirical analyses, for example for the USA, show that the social security system has a considerable negative effect on aggregate savings.2 If this also holds in transition countries, an efficient organisation of the social security system would be particularly relevant there due to the necessity to promote domestic savings." @default.
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- W2155149713 date "1999-01-01" @default.
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- W2155149713 title "Reforming the Social Security System" @default.
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- W2155149713 doi "https://doi.org/10.1007/978-3-642-58666-8_10" @default.
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