Impact of GDP Fluctuations on the Social Security Fund Revenues in Poland

Piotr  Krajewski

doi:10.18778/1508-2008.8.05

Authors

Piotr Krajewski

DOI:

https://doi.org/10.18778/1508-2008.8.05

Abstract

The level of social security contributions depends on the level of wages, which depend on the cyclical fluctuations of GDP. Thus, The Social Security Fund revenues depend on the cyclical fluctuations of GDP. This study is an attempt to estimate the sensitivity of The Social Security Fund own revenues to the GDP fluctuations in the years 1995- 2002 in Poland. It is estimated the article that the short term output elasticity of The Social Security Fund own revenues (revenues from social security contributions) is higher than one. In the years 1995-2002 it was 1,05 on average. It means that output fluctuations cause more than proportional The Social Security Fund own revenues fluctuations, and social security contributions serve as an automatic business stabilizer.

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