Administrative costs for social security programs in selected countries.

In view of the budgetary constraints within which most national social security systems have been operating, considerable interest has been generated, both here and abroad, in the comparative costs of administering social security programs. This study was undertaken to determine the level of administrative spending in the United States and 11 countries (Austria, Belgium, Canada, France, the Federal Republic of Germany, Italy, Japan, the Netherlands, Sweden, Switzerland, and the United Kingdom) that are at an advanced stage of economic development similar to that of the United States. The analysis is based on information from the International Labor Office, which collects and pubIishes data on social security program expenditures in countries around the world. ’ This note compares the administrative costs of the oldage, survivors, and long-term disability insurance programs from 1971 to 1983.’ For the purpose of this note, the term “long-term disability” is used instead of “invalidity insurance”-a term used by most European countries. The note also compares administrative costs for administering total social security programs from 1966 to 1983. These programs include the old-age, survivors, and long-term disability insurance; cash sickness payments for temporary disability: cash maternity payments; workers’ compensation: unemployment insurance; family allowances; public employee pensions; public assistance; and benefits for war victims. The comparisons are expressed as a percentage of administrative costs relative to program expenditures. Changes in percentages may reflect changes in administrative costs, program expenditures, or changes in both. The data used appear to be the most representative available for comparative purposes, although a number of conceptual differences are evident. Not all of the countries studied have all of the programs-for example, the United States does not have a family allowance program. Fiscal year periods and program mix differ from