Predicting the Purchase of Self-Employed Pension Schemes in the Iranian Social Security Organization Using Decision Tree and Random Forest Classification Algorithms

Ghasemi, Yasin; Khandan, Abbas; Akbarpour-Roshan, Narges

Volume 13, Issue 47 (5-2022) jemr 2022, 13(47): 115-165 | Back to browse issues page

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Ghasemi Y, Khandan A, Akbarpour-Roshan N. Predicting the Purchase of Self-Employed Pension Schemes in the Iranian Social Security Organization Using Decision Tree and Random Forest Classification Algorithms. jemr 2022; 13 (47) :115-165
URL: http://jemr.khu.ac.ir/article-1-2280-en.html

Predicting the Purchase of Self-Employed Pension Schemes in the Iranian Social Security Organization Using Decision Tree and Random Forest Classification Algorithms

Yasin Ghasemi¹

, Abbas Khandan ^*

², Narges Akbarpour-Roshan³

1- University of Kharazmi
2- Faculty of economics, University of Kharazmi , khandan.abbas@khu.ac.ir
3- Faculty of economics, Institute for Humanities and Cultural Studies

Abstract: (2453 Views)

The pension coverage of the Iranian Social Security Organization for self-employed workers is offered at three contribution rates of 12, 14 and 18 percent, but looking at the statistics shows that the demand for these types of insurances is low. This research investigates the characteristics of these insured groups by using data mining and applying two machine learning algorithms, decision tree and random forest, and predicts their behavior by providing a classification model. This will help the Social Security Organization to improve customer relationship management. For this purpose, the information of 1286174 insured persons of self-employed in 2020 was used, which includes the characteristics of age, gender, average monthly income, the years of service, and the type of self-employed pension scheme. The obtained results show that women mainly apply for the scheme with 12 percent contribution, while men tend to be covered by schemes with contribution rates of 14 and 18 percent due to the burden of supporting the family. Also, for men, the demand for schemes of 14 and 18 percent increases with the increase of age, income and years of service, but there are no such trends for women. According to the obtained results, years of service and then gender are decisive in choosing the type of pension scheme in such a way that according to the prediction of the model, people with less than 4.5 years of service are known as definite applicants for 12 percent self-employed pension scheme.

Keywords: Pension Insurance of self-employed, Social Security Organization, Data mining, Machine learning, Classification

Full-Text [PDF 812 kb] (1201 Downloads)

Type of Study: Applicable | Subject: بخش عمومی
Received: 2022/11/15 | Accepted: 2023/04/15 | Published: 2023/07/2

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