Did Social Security Improve Labor Productivity?

This note statistically investigates the relationship between social security expenditure indexes and labor productivity during 1980- 2009 in Japan based on the Solow type of production function. In the case of real social security expenditure per labor and per total working hours, labor productivity decreases with respect to real social security. On the other hand, in the case of real social security expenditure per private capital stock, labor productivity increases with respect to real social security. However, the partial regression coefficients of these three indexes are not significant statistically. Therefore, we could not derive a clear relationship between the social security indexes and labor productivity.