Social insurance in the time of robots

Summary for

  1. The first is to eliminate the link between social insurance and employment status and provide a basic and affordable layer of social protection to all citizens, financed by general revenues.
  2. Social insurance systems financed by payroll taxes created for times of stable employment with one formal employer and a substantial surplus of contributors over beneficiaries have become fiscally and socially unsustainable.
  3. To support these measures, the mix of social insurance instruments needs to be broadened to include private accounts for pensions, health, and unemployment.
  4. The link between employment and public insurance through payroll tax financed benefits entails problems for governments, companies and employees.
  5. For both individuals and companies, the growing wedge between gross wages and take-home pay encourages informality, leaves people without social insurance, and dilutes the social contract.

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