Economics & Sociology

ISSN: 2071-789X eISSN: 2306-3459 DOI: 10.14254/2071-789X
Index PUBMS: f5512f57-a601-11e7-8f0e-080027f4daa0
Article information
Title: Evaluating the Sustainability of the Spanish Social Security System
Issue: Vol. 10, No 4, 2017
Published date: 12-2017 (print) / 12-2017 (online)
Journal: Economics & Sociology
ISSN: 2071-789X, eISSN: 2306-3459
Authors: Francisco J. Blanco-Encomienda
University of Granada

Alejandro Ruiz-García
University of Granada
Keywords: security, sustainability, reform, pensions, Spain
DOI: 10.14254/2071-789X.2017/10-4/1
Index PUBMS: 175444e3-f8f5-11e7-94c4-fa163e5d4f72
Language: English
Pages: 11-20 (10)
JEL classification: C01, C22, H55
Website: http://www.economics-sociology.eu/?535,en_evaluating-the-sustainability-of-the-spanish-social-security-system
Licenses:
Abstract

Social security has remarkable relevance in the general context of Spanish economy. This system is viable if the volume of active population increases at a higher rate than the number of pensioners does and if, in addition, active population is employed by the productive system. The reports of the National Institute of Statistics about Spanish demography demonstrate how these conditions are not met as of today, because our society has one of the highest aging rates and also a remarkable increase in the dependency rate. Through various techniques of time series analysis, this paper reveals the current economic trends in Spain to demonstrate the need for structural reforms of the system so as to make it more sustainable in the long term. To achieve this, it is necessary to change the financing model to a mixed one where the capitalization method plays a significant role, and also to implement urgent measures in order to reduce the barriers to business and employment development.

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