Effects of the Public Sector downsizing on Social Security and public finance

Ioannis Vogiatzis, Costas Siriopoulos, Nikolaos Frangos


This paper presents the results of the actuarial valuation method Projected Unit Credit (“benefits/years of service”) in order to assess the effects of the public sector downsizing on real economy and social security in Greece, using a prototype data set. We found a social security loss of about 1.3 bn.€, and the effect on the GDP is estimated -13.6 bn.€ (or -7%). We also report a decrease in the direct income by 6.1 bn.€.
JEL classifications: C58; H55.
Keywords: Projected Unit Credit Method, Public Sector Downsizing, Pensions, Social Security

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η δικτυακή πύλη της ευρωπαϊκής ένωσης ψηφιακή ελλάδα ΕΣΠΑ 2007-2013