Arbeitspapier

On the taxing of migrants' earnings while retaining a migrant workforce

We study policies that are aimed at retaining a migrant workforce in a Gulf State while introducing a tax on migrant earnings. We single out Qatar as a case study. We consider two types of migrants: target migrants, and non-target migrants. If migrants are target migrants, we show that in order to neutralize the effect of a tax on their earnings, Qatar needs to extend the length of time migrants are allowed to stay. Such a scheme can work even when the migrants experience utility loss from staying longer in Qatar. If migrants are non-target migrants, we show that implementation of a lottery scheme in which the prizes are life-long residency in Qatar can "compensate" for the imposition of the tax. In both cases, we present numerical examples that illustrate the magnitudes involved.

Language
Englisch

Bibliographic citation
Series: ZEF Discussion Papers on Development Policy ; No. 263

Classification
Wirtschaft
International Migration
Compensation Packages; Payment Methods
Labor Contracts
Subject
Migration
Taxing migrants
Target migrants
Non-target migrants

Event
Geistige Schöpfung
(who)
Stark, Oded
Budzinski, Wiktor
Event
Veröffentlichung
(who)
University of Bonn, Center for Development Research (ZEF)
(where)
Bonn
(when)
2018

Handle
Last update
10.03.2025, 11:43 AM CET

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Object type

  • Arbeitspapier

Associated

  • Stark, Oded
  • Budzinski, Wiktor
  • University of Bonn, Center for Development Research (ZEF)

Time of origin

  • 2018

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