Authors
Henrik Kleven, Camille Landais, Mathilde Muñoz, Stefanie Stantcheva
Publication date
2020/5/1
Journal
Journal of Economic Perspectives
Volume
34
Issue
2
Pages
119-142
Publisher
American Economic Association
Description
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 and then discuss how recent work has 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 recognizing that mobility elasticities are not exogenous, structural parameters. They can vary greatly depending on the population being analyzed, the …
Total citations
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Scholar articles
H Kleven, C Landais, M Muñoz, S Stantcheva - Journal of Economic Perspectives, 2020