TY  - RPRT
        AU  - Makarski, Krzysztof
AU  - Tyrowicz, Joanna
AU  - Komada, Oliwia
        TI  - Progressing Towards Efficiency: The Role for Labor Tax Progression in Reforming Social Security
        PY  - 2022/Feb/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 15100
        UR  - https://www.iza.org/publications/dp15100
        AB  - We study interactions between progressive labor taxation and social security reform. Increasing longevity puts fiscal strain that necessitates the social security reform. The current social security is redistributive, thus providing (at least partial) insurance against idiosyncratic income shocks, but at the expense of labor supply distortions. A reform which links pensions to individual incomes reduces distortions associated with social security contributions, but incurs insurance loss. We show that the progressive labor tax can partially substitute for the redistribution in social security, thus reducing the insurance loss.
        KW  - social security reform
KW  - labor income tax
KW  - redistribution
KW  - insurance
KW  - welfare effects
        ER  -