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The Microeconomic Determinants of Demand for Social Security: Evidence from the Algerian Labour Market

Author

Listed:
  • Walid Merouani

    (Centre De Recherche En Economie Appliquee Pour Le Developpement (CREAD, Algérie). Centre De Recherche En Economie Et Management (CREM-CNRS, France))

  • Nacer Eddine Hammouda

    (De Recherche En Economie Appliquee Pour Le Developpement (CREAD, Algérie))

  • Nacer Claire El Moudden

    (De Recherche En Economie Et Management (CREM-CNRS, France))

Abstract

The aim of this paper is to identify the determinants of demand for social security. International institutions (World Bank, International Labor Organisation etc.) consider social security to be a human right. However, in Algeria, 73% of workers in the private sector do not have any social insurance coverage (employment survey, ONS, 2013). Risk aversion (Barsky et al., 1997; Freidman, 1973), time discounting (Arrondel et al., 2004; Brown et al., 2013) and the orientation of social value orientations (Murphy et al., 2011) are all potential determinants of demand for social insurance. This paper measures these variables using experimental methods and by means of a survey administered to the active labour force in Algeria. It was found that risk aversion increases demand for social insurance, loss aversion decreases demand, and time discounting has negative effect on the demand for social insurance. In terms of personality, individualistic respondents were less likely to purchase social insurance while pro-social individuals were more likely to demand social insurance.

Suggested Citation

  • Walid Merouani & Nacer Eddine Hammouda & Nacer Claire El Moudden, 2016. "The Microeconomic Determinants of Demand for Social Security: Evidence from the Algerian Labour Market," Institutions and Economies (formerly known as International Journal of Institutions and Economies), Faculty of Economics and Administration, University of Malaya, vol. 8(1), pages 25-61, January.
    • Handle: RePEc:umk:journl:v:8:y:2016:i:1:p:25-61
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    File URL: http://ijie.um.edu.my/filebank/published_article/9380/The%20Microeconomic%20Determinants%20of%20Demand%20for%20Social%20Security%20-%20Evidence%20from%20Algerian%20Labour%20Market.pdf
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    Citations

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    Cited by:

    1. Lucas Sato & Nourjelha Mohamed, 2022. "The role of social insurance schemes in addressing the risks faced by agricultural workers in the Middle East and North Africa," Research Report 80, International Policy Centre for Inclusive Growth.
    2. Anna Kaliciak & Radoslaw Kurach & Walid Merouani, 2016. "Who is Eager to Save for Retirement – the Cross-Country Evidence," LWS Working papers 23, LIS Cross-National Data Center in Luxembourg.
    3. Walid Merouani & Claire El Moudden & Nacer Eddine Hammouda, 2021. "Social Security Enrollment as an Indicator of State Fragility and Legitimacy: A Field Experiment in Maghreb Countries," Social Sciences, MDPI, vol. 10(7), pages 1-25, July.
    4. Walid Merouani & Claire El Moudden & Nacer-Eddine Hammouda, 2018. "Social Security Entitlement in Maghreb Countries: Who is Excluded? Who is not Interested?," Working Papers 1264, Economic Research Forum, revised 03 Dec 2018.

    More about this item

    Keywords

    Risk Aversion; Social Value Orientation; Time Discounting; Social Insurance;
    All these keywords.

    JEL classification:

    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions

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