Taxation and Internal Migration: Evidence from the Swiss Census Using Community-Level Variation in Income Tax Rates
AbstractWe investigate the relationship between income tax rate variation and internal migration for the unique case of Switzerland, whose system of determining tax rates primarily at the community level results in enough variation to permit analysis of their influence on migration. Specifically, using Swiss census data, we analyze migratory responses to tax rate variations for various groups defined by age, education, and nationality/residence permit. The results suggest that young Swiss college graduates are most sensitive to tax rate differences, but the estimated effects are not large enough to offset the revenue-increasing effect of a rise in tax rate. The migratory responses of foreigners and other age-education groups are even smaller, and reverse causation seems negligible.
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Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 2374.
Length: 39 pages
Date of creation: Oct 2006
Date of revision:
Publication status: published in: Journal of Regional Science, 2007, 47 (4), 807-836
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Other versions of this item:
- Thomas Liebig & Patrick A. Puhani & Alfonso Sousa-Poza, 2007. "Taxation And Internal Migration-Evidence From The Swiss Census Using Community-Level Variation In Income Tax Rates," Journal of Regional Science, Wiley Blackwell, vol. 47(4), pages 807-836.
- Liebig, Thomas & Puhani, Patrick A. & Sousa-Poza, Alfonso, 2006. "Taxation And Internal Migration - Evidence From The Swiss Census Using Community-Level Variation In Income Tax Rates," Diskussionspapiere der Wirtschaftswissenschaftlichen FakultÃ¤t der Leibniz UniversitÃ¤t Hannover dp-348, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
- J61 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Geographic Labor Mobility; Immigrant Workers
- H73 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Interjurisdictional Differentials and Their Effects
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-10-28 (All new papers)
- NEP-PBE-2006-10-28 (Public Economics)
- NEP-URE-2006-10-28 (Urban & Real Estate Economics)
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