Efficient Consolidation of Incentives for Education and Retirement Savings

• 成果类型: Article
• 署名作者: Paluszynski, Radoslaw; Yu, Pei Cheng
• 署名单位: University of Houston System; University of Houston; University of New South Wales Sydney
• 刊物名称: AMERICAN ECONOMIC JOURNAL-MACROECONOMICS
• ISSN/ISSBN: 1945-7707
• DOI: 10.1257/mac.20200181
• 发表日期: 2023
• 页码: 153-190
• 关键词: Optimal income taxation; tax; redistribution; premium; inertia; MODEL

摘要

We study optimal tax policies with human capital investment and retirement savings for present-biased agents. Agents are heterogeneous in their innate ability and make risky education investments, which determines their labor productivity. We demonstrate that the optimal distortions vary with education status. In particular, the optimal policy encourages human capital investment with savings incentives. Our implementation uses income-contingent student loans and existing retirement policies, augmented by a new tax instrument that subsidizes retirement savings for college graduates. The instrument mimics the latest policy proposals by allowing employers to offer 401(k) matching contributions proportional to student loans repayment.