Anatomy of social security contribution evasion in Italy

2020 ◽  
pp. 7-37
Author(s):  
Vincenzo Alfano
Keyword(s):  
Social Security ◽  
Tax Evasion ◽  
Work Force ◽  
Descriptive Statistics ◽  
Italian Population ◽  
Social Security Contribution ◽  
Italian Regions ◽  
Highly Sensitive ◽  
The Social ◽  
The World

This work presents an estimate of social security contribution evasion (SSCE) for different job categories and job sectors in Italy, among 1995 and 2016. The evasion is computed as share of the work-force that did not pay social security contribution, not as monetary evasion. The author finds a stationary trend in the size of the SSCE over time, and some significative differences in the different sectors and in the different Italian regions. The average SSCE for Italy in the 1995-2016 period is 0.149, an evasion of around 15 percent of the workforce in the social security contributions of a representative sample of Italian population, calculated on over 26,000 observations. SSCE is a well-known issue all around the world. It is a highly sensitive topic, and it is been suggested that given the aging of the population and the increasing flexibility of the work, its importance is going to increase. It is particularly interesting in a country such as Italy, where there is a huge underground economy that affects the country. Even though economists have studied the determinant and the effect of tax evasion (Allingham and Sandmo, 1972) since half a century, very few works have specifically focused on the implication of contribution evasion for social security schemes (Bailey, 2001; McGillivray, 2002) and on the determinants of contribution evasion (Bailey, 1997), especially with a quantitative approach. This work aims to contribute to the literature on SSCE, which has his own specificities that makes it different from tax evasion, offering a series of descriptive statistics on SSCE in Italy in the last twenty years. The two main goals of this study are to estimate SSCE in Italy for the different job categories, in different work sectors and in all the Italian regions between 1995 and 2016 and to provide some insights about the main causes of SSCE. In a nutshell, the findings of the author show that the highest SSCE is among self-employed and temporary worker active in the household services, building and agriculture sectors. Instead for the geographical distribution concerns, Southern Italian regions register a higher SSCE than Centre and North of Italy. The trend over the period 1998-2016 of SSC evasion is pretty much stable, while there is a gap with the 1995 estimate.

scholarly journals Social Security Contribution Rate and Its Impacts on Labor Demand of Enterprises in Carbon Neutral Context

2021 ◽  
Vol 275 ◽  
pp. 02059
Author(s):  
Haizhu Zhao ◽  
Lianhua Luo
Keyword(s):  
Social Security ◽  
Labor Demand ◽  
State Council ◽  
Contribution Rate ◽  
Social Security Contribution ◽  
The Social ◽  
Heterogeneity Analysis ◽  
The Government ◽  
Total Labor ◽  
Labor Remuneration

With the government setting stricter standard on carbon emission, enterprises are facing more environmental pressure and cost these years. At the same time, China’s State Council has officially announced a further reducing the social security contribution rate from May 1, 2019, it is worthy of assessing that if the reduction would decompress enterprises and promote labor demand. Our results shows that social security contribution rate does not have significantly impacts on enterprises’ labor demand overall. However, when wage and benefit are controlled, it has a direct impact on labor demand. Basic regression and heterogeneity analysis both confirm it. Wage and benefit play intermediary roles as the results show. Social security contribution rate has negatively impact on wage and benefit, which help to keep the total labor remuneration and then labor demand unchanged. State-owned and private enterprises show similar results. However, laborintensive and non-labor-intensive enterprises show slightly different results.

scholarly journals The social security reform process in Italy: where do we stand?

2004 ◽  
Vol 3 (2) ◽  
pp. 165-195 ◽  
Author(s):  
AGAR BRUGIAVINI ◽  
VINCENZO GALASSO
Keyword(s):  
Social Security ◽  
Pension System ◽  
Social Security System ◽  
Economic Incentives ◽  
Security System ◽  
The Political ◽  
Reform Process ◽  
Italian Population ◽  
Positive Effects ◽  
The Social

A reform process is underway in Italy. Achieving financial sustainability of the social security system has been the first objective characterizing the reforms of 1990s, but these have also introduced rules which aim at a more actuarially fair system. Indeed the social security system prevailing in Italy, financed on a PAYG basis, was, at the end of the 1980s, clearly unsustainable and also extremely unfair to some group of workers, enacting a form of perverse redistribution which is typical of ‘final salary’ defined benefit systems. It was also a system characterized by strong incentives to retire early.In this paper we briefly describe the different regimes of the Italian pension system in its recent history and focus on some aspects of the reform process taking place during the 1990s. Since economists and policy makers are still struggling to assess the results and the long-term effects of these reforms we provide both a survey of this debate and some fresh evidence on the evaluation of the policy changes. We carry out this analysis with a particular emphasis on two aspects which are relevant in the debate. On the one hand we stress the role of economic incentives and the overall fiscal implications of changing the systems as well as these incentives. On the other hand we emphasize the intergenerational considerations and the political implications of the ageing process of the Italian population. From our description it emerges that the overall design of the Italian reform is probably a good one, and yet some more steps need to be taken to speed up some of the positive effects of the reform process that, due the adverse demographic trends affecting PAYG systems as well as the political arena, could easily evaporate.

scholarly journals Power, Alliances, and Redistribution

2021 ◽  
Author(s):  
Carl Friedrich Bossert
Keyword(s):  
Latin America ◽  
Social Security ◽  
Low Income ◽  
Social Systems ◽  
Economic Factors ◽  
Factors Influencing ◽  
The Social ◽  
The World

Latin America is considered the most unequal continent in the world. Paradoxically, the development of resource-intensive social systems has done little to change the social imbalance. The author traces this paradox using Argentina as an example, uncovering the underlying conflicts of power and interests, and identifying successful strategies for implementing inclusive policies. As the first study of its kind, it systematically examines the long-term development of social security for low-income earners in Argentina and analyzes the decisive political, social, and economic factors influencing it.

Determinants of second pillar pension reforms: economic crisis and globalization

2019 ◽  
Vol 19 (3) ◽  
pp. 392-408
Author(s):  
Joelle H. Fong ◽  
Markus Leibrecht
Keyword(s):  
Social Security ◽  
Economic Crisis ◽  
Fundamental Importance ◽  
Security Framework ◽  
Pension Reforms ◽  
The Social ◽  
Economic Forces ◽  
The World ◽  
History Of ◽  
Empirical Methodology

AbstractIn this paper, we examine reforms characterized by the establishment of mandatory funded privately-managed schemes in the social security framework. We construct a new dataset to analyze the determinants of pension reforms over 1980–2012 in about 100 medium and large economies around the world. Our results highlight the fundamental importance of economic forces in explaining the speed of reforms after adjusting for the confounding effects of demographic and geopolitical factors. Countries with greater globalization growth and a history of economic crisis experienced a shorter time until reform. These findings are robust to variations in empirical methodology.

Reforming Social Security Around the World

2017 ◽  
pp. 1-11
Author(s):  
David Besanko ◽  
Saahil Malik
Keyword(s):  
Social Security ◽  
Old Age ◽  
Social Security System ◽  
Security System ◽  
Social Security Administration ◽  
Trust Fund ◽  
Long Run ◽  
The Social ◽  
The World ◽  
The U.S

In May 2009 the Office of the Chief Actuary for the U.S. Social Security Administration projected that by 2016 the Social Security Trust Fund would begin to spend more money than it took in through tax revenue. Further, by 2037 the balance in the Trust Fund would be down to zero, necessitating cuts in benefits to retirees. The U.S. Social Security system thus faced a long-term financial problem that needed to be addressed sooner rather than later. The experience of other countries in reforming their own systems of old-age insurance might provide some guidance for U.S. policymakers as they attempt to deal with the long-run fiscal challenges facing the U.S. Social Security system. This case focuses on reforms of old-age insurance systems in three countries: Australia, Mexico, and Sweden.This case gives students the opportunity to debate the variety of approaches that could be used to reform the U.S. Social Security system. It also gives insight into how countries around the world have structured their old-age insurance systems.

scholarly journals SOCIAL SECURITY CONTRIBUTION INDEBTED FIRMS IN VIETNAM: CHARACTERISTICS AND MARKET VALUE

2020 ◽  
Vol 129 (5A) ◽  
Author(s):  
Phan Hoang Long ◽  
Tra Luc Diep ◽  
Tran Thi Hang
Keyword(s):  
Social Security ◽  
Market Value ◽  
Foreign Ownership ◽  
State Ownership ◽  
Social Security Contribution ◽  
Public Firms ◽  
Size Number ◽  
The Social ◽  
Using Data ◽  
Social Security Agency

Abstract: This research is the first to empirically analyse the characteristics of firms that defer the social security contribution for their employees to the Vietnam Social Security agency, which is a chargeable offense starting 2018 as the Vietnam government focuses on ensuring worker welfare. Using data on 873 public firms headquartered in four major cities (Ha Noi, Ho Chi Minh, Da Nang, and Hai Phong), we find that non-state-owned firms and firms with lower profitability and higher debts are more likely to be in arrears on social security contribution. On the other hand, the roles of foreign ownership, size, number of employees, and number of branches/offices are insignificant. We further show that being social security contribution indebted would negatively affect shareholders’ interest as it is associated with lower firm market values.Key words: social security contribution, worker welfare, state ownership, foreign ownership, firm market value

scholarly journals Social security as an object of public administration in Ukraine and over the world

2020 ◽  
Vol 5 (5) ◽  
pp. 47-52
Author(s):  
Yurii Pavliutin
Keyword(s):  
Social Security ◽  
Public Relations ◽  
National Security ◽  
Public Administration ◽  
Negative Consequences ◽  
Social Sphere ◽  
The Social ◽  
The World ◽  
Legal Mechanism

Based on the analysis of current legislation governing administrative relations in the security and defense sector, the article analyzes the place and role of social security in the national security system and formulates a number of scientifically sound proposals for further intelligence in this area. It is emphasized that a characteristic feature of the organizational and legal mechanism of national security of Ukraine in the social sphere as an object of public administration is the loss of the category of social security integrity of clearly defined areas of public relations, as the interests of individuals and forms of government do not always coincide. The mechanism of social security is in a state of constant transformation, reflecting in most cases the negative consequences of a non-systemic approach to creating an effective model for countering challenges and threats.

scholarly journals Sobre los funcionarios de la Unión Europea y su régimen de seguridad social: los tributos como cotizaciones sociales a efectos del TJUE = Issues about officials of the European Union and its social security regime: taxes as social contributions to the effects of the CJEU

2017 ◽  
Vol 9 (2) ◽  
pp. 355
Author(s):  
Thais Guerrero Padrón
Keyword(s):  
European Union ◽  
Social Security ◽  
Member State ◽  
The European Union ◽  
Social Security Contribution ◽  
Social Security Systems ◽  
Security Scheme ◽  
The Social ◽  
Social Security Scheme ◽  
Social Contributions

Resumen: La obligatoria integración y cotización de los funcionarios de la UE en un régimen de seguridad social propio, netamente comunitario, al margen de la competencia estatal y no afectado por el Reglamento de coordinación en seguridad social, les libera de sufragar las prestaciones de seguridad social de su país. El TJUE rechaza que un Estado miembro pueda imponer al funcionario de la UE, con domicilio fiscal en este país, la obligación de pagar ciertos impuestos que gravan sus rentas inmobiliarias, cuando van destinados a financiar determinadas prestaciones de la seguridad social nacional, de lo que se deduce que para el TJUE todo recurso que contribuye a la seguridad social, sea cual sea su naturaleza jurídica, es considerado en sentido amplio “cotización de seguridad social”.Palabras clave: Libre circulación de trabajadores, seguridad social, funcionarios de la Unión Europea, tributos, cotización.Abstract: The officials of the European Union are compulsorily affiliated and subject to the contributions of the social security scheme of the EU institutions. Such scheme lies outside the jurisdiction of the Member States and it is unaffected by the Regulation on the coordination of social security systems. In consequence, the officials of the European Union are exempted from defraying the national social security benefits. In this way, the imposition from a Member State to the official, whose domicile for tax purposes is in that country, to pay some contributions and social levies in respect of income from real estate, is rejected by the CJEU when they are allocated for the funding of the social security scheme of that same Member State. It follows that every source used to pay social security is broadly considered by the Court of Justice as a “social security contribution”, in spite of its legal nature.Keywords: Free movement of workers, social security, officials of the European Union, taxes, social security contribution.

scholarly journals Antecedentes históricos de la previsión social

2009 ◽  
pp. 307
Author(s):  
Francisco Javier Quesada Sánchez ◽  
José Antonio Rojas Tercero
Keyword(s):  
Health Service ◽  
Social Security ◽  
Social Security System ◽  
Security System ◽  
Historical Evolution ◽  
Financial Variables ◽  
The Third ◽  
The United Kingdom ◽  
The Social ◽  
The World

El presente trabajo tiene tres partes claramente diferenciadas. En la primera de ellas, se contempla la evolución histórica del seguro hasta nuestros días. La segunda parte recoge el surgimiento del régimen de previsión social obligatoria, su nacimiento en el siglo XVII en el reino Unido, su evolución en Europa y en algunos países del resto del mundo. Existen dos corrientes del sistema de previsión social: Atlántico o universalista y el continental o individualista. La tercera parte se centra en el surgimiento de la Seguridad Social en España y la aparición del sistema de previsión social complementaria o Planes y Fondos de pensiones, haciendo especial reseña a su incidencia en variables biométricas, actuariales, sociales y financieras.<br /><br />The present paper is clearly divided in three main differentiated parts. The first one deals with the historical evolution of insurance up to the present times. The second part is about the appearance of the compulsory social security, its birth in the United Kingdom in 17th Century, its evolution in Europe and in some other countries of the world. There are two streams for the social security system: The Atlantic or universal and the continental or individualist. The third part is focused on the appearance of the health service in Spain and the appearance of a complementary social security system or pension funds and it emphasizes their impact on biometric, actuarial, social and financial variables

Security in a flexible economy: toward a third age for work and welfare links?

2001 ◽  
Vol 7 (2) ◽  
pp. 309-320
Author(s):  
Robert Salais
Keyword(s):  
European Union ◽  
Social Security ◽  
Social Protection ◽  
Social Regulation ◽  
The European Union ◽  
Third Age ◽  
Social Question ◽  
The Social ◽  
The World

This article considers the transformation of the world of work and its interrelationship with changes in the social regulation of work and social security. The implications of the contradiction between a greater emphasis on autonomy and skills at work and the exclusionary effects of greater selectivity in recruitment are discussed. It is argued that we are witnessing a move to a ‘third age’ of work and social protection, in which qualitative and participatory aspects come to the fore, alongside aspects of the ‘social question’ more typical of earlier ‘ages’ — alleviating poverty and reducing unemployment. In conclusion the article considers the role of the European Union in addressing the resulting challenges.

Sign in / Sign up

Export Citation Format

Share Document