Detailed Analysis of The Laffer Effect at Turkish Social Security Administration Premium Revenue

Abstract

This study is an attempt to analyse and deep the social security premium rate/load as a factor that influences the premium revenues for the Turkish Social Security Administration by using the Laffer curve logic and to identify relation and the premium load that maximizes premium revenues and assessing the revenue increase for the Administration. Turkish Social Security system separates the employees in three main groups: Indıvıduals working on service contract who are subject to SSK (Social Insurance Administration), Individuals working on their own names and accounts who are subject to Bag-Kur (Craftsmen And Artisans And Other Self-Employed Social Insurance Institution) and public employees or civil servants who are subject to ES (Retirement Fund General Directorate) before the social security reform. The previous studies; “Model Proposal for Investigating and Increasing the Social Security Administration’s Premium Collection Revenue†analysed the relationship between the premium revenue and premium rate/load for all the employees, make a total analyse for premium rate and revenue and “The Laffer Effect at Turkish Social Security Administration’s Premium Revenue†analysed the most crowded group of the Turkish Social Security system SSK.In this study it will be focused on Bag-Kur and ES premium revenue. The monthly data for the period between January 2009 and December 2012 were used in this study.

Keywords: Premium Rate; Premium Revenue; Earnings Based On Premium; The Laffer Curve