{
  "title": "Tax Burden and Migration: A Political Economy Perspective",
  "publication": "IMF Working Papers, June 1, 1997",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2016/12/30/tax-burden-and-migration-a-political-economy-perspective-2255",
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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.",
  "sections": [
    {
      "heading": "Summary",
      "content": "- The extent of taxation and redistribution policy is determined at a political-economy equilibrium by a balance between those who gain and those who lose from a more extensive tax-transfer policy.\n- In a stylized model of migration and human capital formation, the authors find 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."
    },
    {
      "heading": "Key findings and conclusions",
      "content": "- Low-skill migration can paradoxically reduce the equilibrium tax burden and redistribution.\n- Migrants may join the pro-tax coalition but the overall political-economy equilibrium can shift toward less redistribution.\n- The result runs somewhat against conventional wisdom about the fiscal impacts of low-skill migration."
    },
    {
      "heading": "Model and mechanisms (as described)",
      "content": "- Analysis is based on a stylized model that integrates migration and human capital formation.\n- The political-economy equilibrium is determined by the balance of gains and losses from a more extensive tax-transfer policy.\n- Keywords and technical terms used: equilibrium migration condition, equilibrium tax rate, income gap, low-skill migrant, migration quota, mover accent, tax-transfer policy, tax incidence."
    },
    {
      "heading": "Subject coverage",
      "content": "- Consumption\n- Education\n- Migration\n- National accounts\n- Population and demographics\n- Tax incidence\n- Tax policy\n\n---\n\n Content in this bundle\n\n- Tax Burden and Migration: A Political Economy Perspective -WP/97/78\n  - Tax Burden and Migration: A Political Economy Perspective -WP/97/78 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Tax Burden and Migration: A Political Economy Perspective -WP/97/78 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/30/tax-burden-and-migration-a-political-economy-perspective-2255"
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    "[Markdown version](/en/publications/wp/issues/2016/12/30/tax-burden-and-migration-a-political-economy-perspective-2255/index.md)",
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    "Authors: Efraim Sadka, Assaf Razin",
    "Published: June 1, 1997",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451956283.001",
    "The extent of taxation and redistribution policy is 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, the authors find 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.",
    "Low-skill migration can paradoxically reduce the equilibrium tax burden and redistribution.",
    "Migrants may join the pro-tax coalition but the overall political-economy equilibrium can shift toward less redistribution.",
    "The result runs somewhat against conventional wisdom about the fiscal impacts of low-skill migration.",
    "Analysis is based on a stylized model that integrates migration and human capital formation.",
    "The political-economy equilibrium is determined by the balance of gains and losses from a more extensive tax-transfer policy.",
    "Keywords and technical terms used: equilibrium migration condition, equilibrium tax rate, income gap, low-skill migrant, migration quota, mover accent, tax-transfer policy, tax incidence.",
    "Consumption",
    "Education",
    "Migration",
    "National accounts",
    "Population and demographics",
    "Tax incidence",
    "Tax policy",
    "**Tax Burden and Migration: A Political Economy Perspective -WP/97/78**"
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