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Taxing top wealth: migration responses and their aggregate economic implications

Author

Listed:
  • Jakobsen, Katrine
  • Kleven, Henrik
  • Kolsrud, Jonas
  • Landais, Camille
  • Munoz, Mathilde

Abstract

Using administrative data from Scandinavian countries, we provide evidence on international migration responses to wealth taxes and evaluate their aggregate economic implications. We find significant migration responses among the wealthy: a 1pp increase in the top wealth tax rate decreases the stock of wealthy taxpayers by about 2%. A large fraction of the wealthy are business owners, and their businesses are negatively affected by owner out-migration. The aggregate effects are nevertheless modest: the migration responses to a 1pp increase in the top wealth tax rate reduce employment by 0.02%, investments by 0.07%, and value-added by 0.10%.

Suggested Citation

  • Jakobsen, Katrine & Kleven, Henrik & Kolsrud, Jonas & Landais, Camille & Munoz, Mathilde, 2026. "Taxing top wealth: migration responses and their aggregate economic implications," LSE Research Online Documents on Economics 130959, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:130959
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    File URL: https://researchonline.lse.ac.uk/id/eprint/130959/
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    More about this item

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • K34 - Law and Economics - - Other Substantive Areas of Law - - - Tax Law

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