Arbeitspapier
Nonlinear Taxation and International Mobility in General Equilibrium
We study the nonlinear taxation of internationally mobile workers in general equilibrium. Contrary to conventional wisdom, in general equilibrium, migration lowers the bottom tax rate but raises the top tax rate, making the optimal tax system more progressive and moving tax rates closer to those in an economy with fixed wages. The intuition is that governments attract high-skilled workers by amplifying pre-tax wage inequality and partly offsetting trickle-down forces from production complementarities. This finding raises doubts about the importance of trickle-down for optimal taxation and offers a novel explanation for why globalization may increase tax progressivity and wage inequality.
- Sprache
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Englisch
- Erschienen in
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Series: CESifo Working Paper ; No. 9132
- Klassifikation
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Wirtschaft
Taxation and Subsidies: Efficiency; Optimal Taxation
Personal Income and Other Nonbusiness Taxes and Subsidies; includes inheritance and gift taxes
State and Local Government; Intergovernmental Relations: Interjurisdictional Differentials and Their Effects
International Migration
General Equilibrium and Welfare Economic Analysis of Regional Economies
- Thema
-
optimal taxation
general equilibrium
trickle-down effects
migration
tax/subsidy competition
- Ereignis
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Geistige Schöpfung
- (wer)
-
Janeba, Eckhard
Schulz, Karl
- Ereignis
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Veröffentlichung
- (wer)
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Center for Economic Studies and Ifo Institute (CESifo)
- (wo)
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Munich
- (wann)
-
2021
- Handle
- Letzte Aktualisierung
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20.09.2024, 08:24 MESZ
Datenpartner
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Objekttyp
- Arbeitspapier
Beteiligte
- Janeba, Eckhard
- Schulz, Karl
- Center for Economic Studies and Ifo Institute (CESifo)
Entstanden
- 2021