Tax Burden and Migration: A Political Economy Perspective
June 1, 1997
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Summary
The extent of taxation and redistribution policy is generally determined at a political-economy equilibrium by a balance between those who gain and those who lose from a more extensive tax-transfer policy. In a stylized model of migration and human capital formation, we find, somewhat against conventional wisdom, that low-skill migration may lead to a lower tax burden and less redistribution than no migration, even though the migrants join the pro-tax coalition.
Subject: Consumption, Education, Migration, National accounts, Population and demographics, Tax incidence, Tax policy
Keywords: Consumption, equilibrium migration condition, equilibrium tax rate, income gap, low-skill migrant, math, Migration, migration quota, mover accent, Tax incidence, tax-transfer policy, WP
Pages:
13
Volume:
1997
DOI:
Issue:
078
Series:
Working Paper No. 1997/078
Stock No:
WPIEA0781997
ISBN:
9781451956283
ISSN:
1018-5941
