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Patriotism, Taxation and International Mobility

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  • Qari, Salmai

    ()
    (WZB - Social Science Research Center Berlin)

  • Konrad, Kai A.

    ()
    (Max Planck Institute for Tax Law and Public Finance)

  • Geys, Benny

    ()
    (WZB - Social Science Research Center Berlin)

Abstract

For patriotic citizens, living in their native country is intrinsically preferable compared to living in the diaspora. In this paper, we analyze the implications of such a patriotic lock-in in a world with international migration and redistributive taxation. In a formal model of redistribution with international migration and fiscal competition we derive the main hypothesis: that countries with a more patriotic population should have higher redistributive taxes. Using ISSP survey data and combining them with OECD taxation data, we find robust evidence suggesting that a) higher patriotism is associated with higher tax burdens, and b) this relation is stronger for the upper-middle range of the income distribution.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 4120.

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Length: 43 pages
Date of creation: Apr 2009
Date of revision:
Publication status: published in: Public Choice, 2012, 151 (3-4), 695 - 717
Handle: RePEc:iza:izadps:dp4120

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Keywords: redistribution; taxation; international mobility; patriotism; fiscal competition;

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Citations

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Cited by:
  1. Tobias König & Andreas Wagener, 2012. "Culture and Tax Structures," CESifo Working Paper Series 3748, CESifo Group Munich.
  2. Konrad, Kai A. & Qari, Salmai, 2012. "The Last Refuge of a Scoundrel?," Munich Reprints in Economics 13960, University of Munich, Department of Economics.
  3. Philipp Doerrenberg & Denvil Duncan & Clemens Fuest & Andreas Peichl, 2012. "Nice guys finish last: are people with higher tax morale taxed more heavily?," Cologne Graduate School Working Paper Series 03-02, Cologne Graduate School in Management, Economics and Social Sciences.
  4. Qari, Salmai & Konrad, Kai A. & Geys, Benny, 2009. "Patriotism, taxation and international mobility," Discussion Papers, Research Unit: Market Processes and Governance SP II 2009-03, Social Science Research Center Berlin (WZB).
  5. Koenig, Tobias & Wagener, Andreas, 2013. "Tax structure and government expenditures with tax equity concerns," Journal of Economic Behavior & Organization, Elsevier, vol. 90(C), pages 137-153.
  6. Seele, Peter, 2011. ""If your letter was in German, I would not understand a bit, and would have ignored that": Preliminary findings from a survey of highly skilled migrants from India and China with working/edu," Discussion Papers 14/2011, Witten/Herdecke University, Faculty of Management and Economics.

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