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Abstract


THE INVESTIGATION OF THE EFFECTS OF INFORMAL EMPLOYMENT ON DEFICITS OF SOCIAL SECURITY INSTITUTION IN TURKEY BETWEEN 2001 AND 2010

The aim of this study is to reveal the impacts of informal employment occurred between 2001 and 2010 in Turkey on deficits of Social Security Institution and to provide solutions for eliminating these deficits. In line with this objective, at first, the balance of income and expenditures of Social Security Institution for the years specified was examined. According to data provided from Turkish Statistical Institute, people, who were employed informally in these years, were incorporated into social security system under the assumption of having the minimum wage and deductions of unemployment insurance and premiums regarding those people were calculated and so social security deficits were re-evaluated. In this respect, it was determined that the social security deficits could have been greatly reduced in 2007, 2008 and 2009 and for the other years Social Security Institution could have had a surplus in the budget. It was observed that the budget of Social Security Institution may have increased by 14 billion 40 million TL at the end of a decade between 2001 and 2010 instead of 189 billion 936 Million TL budget deficit approximately. The findings of the calculations show that informal employment has significant impacts on social security deficits and those deficits can be eliminated by eliminating informal employment.



Keywords
Turkey, Informal Employment, Social Security, Social Security Institution, Social Security Deficit.



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