Paris School of Economics
Institutional Affiliation: Paris School of Economics
NBER Working Papers and Publications
|April 2019||Taxation and Migration: Evidence and Policy Implications|
with Henrik Kleven, Camille Landais, Stefanie Stantcheva: w25740
In this article, we review a growing empirical literature on the effects of personal taxation on the geographic mobility of people and discuss its policy implications. We start by laying out the empirical challenges that prevented progress in this area until recently, and then discuss how recent work have made use of new data sources and quasi-experimental approaches to credibly estimate migration responses. This body of work has shown that certain segments of the labor market, especially high-income workers and professions with little location-specific human capital, may be quite responsive to taxes in their location decisions. When considering the implications for tax policy design, we distinguish between uncoordinated and coordinated tax policy. We highlight the importance of recognizin...