Stress Testing the Social Security System

By stress testing the social security system, the study seeks to find out how an unexpected economic downturn or loss of income affects households’ livelihood and ability to afford essential expenses. The social security stress test suggested by Atkinson in 2009 is applied in the study. A microsimulation method is used for examining how extensively the social insurance system covers households against, for example, unemployment.

The study provides current information on whether social security offers adequate protection against unforeseen risks. In addition, the study seeks to respond to existing information needs by applying the method to the evaluation of the financial impacts of the 2020 pandemic. The first stage involves an analysis of the protection available to Finnish employed and self-employed households. The evaluation of the economic impact focuses on the economic security of households and the extent of coverage provided by the social security system.

Researchers

• Tapio Räsänen, Leading Researcher
• Signe Jauhiainen
• Marjo Pyy-Martikainen

Project Implementation Period

1.4.2020–31.12.2022

The project has ended.