FACTORS INFLUENCING THE DEFICIT OF SOCIAL SECURITY SYSTEMS

This paper analyses a number of factors that affect the deficit of social security funds. For the statistical analysis, we used a data panel covering ten countries in Central and Eastern Europe. The variables analysed were: migration, unemployment and dependency ratio of the elderly. All states analysed are characterised by a similar pattern in terms of social security systems’ configuration. The pension system, as basic component of the social security system, is of the PAYG type, being vulnerable to demographic changes.Also, all these countries have experienced the transition from socialist to the capitalist system, facing socio-economic and demographic problems such as unemployment, migration or population aging. The results show that all thesefactors influence the volume of the deficit of social security funds.