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
Englisch

Erschienen in
Series: CESifo Working Paper ; No. 9132

Klassifikation
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
Geistige Schöpfung
(wer)
Janeba, Eckhard
Schulz, Karl
Ereignis
Veröffentlichung
(wer)
Center for Economic Studies and Ifo Institute (CESifo)
(wo)
Munich
(wann)
2021

Handle
Letzte Aktualisierung
20.09.2024, 08:24 MESZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Janeba, Eckhard
  • Schulz, Karl
  • Center for Economic Studies and Ifo Institute (CESifo)

Entstanden

  • 2021

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