Synergy of old age pensions, benefits and economic activity in Latvia
2013
Mistre, B., Latvia Univ. of Agriculture, Jelgava (Latvia). Faculty of Economics. Dept. of Accounting and Finances | Muska, A., Latvia Univ. of Agriculture, Jelgava (Latvia). Faculty of Economics. Dept. of Business and Management
The paper examined the legal aspects of old age pension and state social insurance benefits, analysed the economic activity of Latvia's municipalities and cities in 2011 by using cluster analysis as well as examined the interaction between the economic activity of a territory and the average amount of pension and benefits. The research hypothesis: a synergy exists in Latvia between the average amount of old age pension and state social insurance benefits and the economic activity in Latvia. The analysis of Latvia legal acts showed that the basic factor determining the average amount of social insurance benefits and pension was the average wage subject to insurance contributions. According to the cluster analysis results, a monocentric development trend is specific to Latvia, which leads to significant differences between Latvia's capital city Riga and other municipalities and cities. Latvia's territory may be classified by economic activity into three categories: (1) the country's capital city Riga; (2) cities, except Riga, and large, in terms of territory, municipalities; (3) small, in terms of territory, municipalities. The analysis of interaction showed that a synergy existed between economic activity as well as the proximity of a municipality to the capital city and the average amount of old age pension, unemployment benefit, sickness benefit, maternity, paternity, and parental benefits.
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