Tax Burden and Migration: A Political Economy Perspective

June 1, 1997

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Format: Chicago

Efraim Sadka, and Assaf Razin. Tax Burden and Migration: A Political Economy Perspective, (USA: International Monetary Fund, 1997) accessed November 24, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

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

Publication Details

Pages:

13
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 1997/078
Stock No:

WPIEA0781997
ISBN:

9781451956283
ISSN:

1018-5941

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