The potential impact of introducing a social security system in the State of Palestine: A computable general equilibrium approach |
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Authors: | Tareq Sadeq Mohanad Ismael Ali Jabarin Lulit Mitik |
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Affiliation: | 1. Birzeit University, Birzeit, West Bank, State of Palestine;2. MAS, Ramallah, State of Palestine;3. Consultant, Addis Ababa, Ethiopia |
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Abstract: | This article assesses the potential impact for the State of Palestine (West Bank and Gaza) of enforcing the enactment of the currently suspended Social Security Law (No. 19 of 2016). Using a computable general equilibrium model, we simulate different scenarios associated with the enactment of the social security system on key macroeconomic variables, such as GDP, private consumption, government spending, investment and employment, for the period 2020–2030. We evaluate the influence on the economy of introducing a social security system for private-sector workers, as set out in the 2016 law, and compare the simulation results of each scenario to the baseline. In each scenario, we consider different options concerning severance payment duration and different options for the investment strategy of social security contributions. However, for employees in Gaza, the article does not consider severance payments due to economic difficulties and the Israeli closure policy. |
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Keywords: | social security schemes investment policy severance pay contributions State of Palestine régimes de sécurité sociale politique d'investissement indemnité de licenciement cotisations État de Palestine regímenes de seguridad social política de inversiones auxilio de cesantía cotizaciones Estado de Palestina Systeme der sozialen Sicherheit Investitionspolitik Abfindungszahlung Beiträge Staat Palästina |
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