IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

How does Economic Integration Change Personal Income Taxation? Evidence from a new Index of Potential Labor Mobility

  • Protte, Benjamin
Registered author(s):

    In this paper, I estimate the effect of increasing labor mobility on personal income tax schedules. I combine rich data on effective personal income tax levels in a panel of OECD countries for the period 1986-2005 with a new Index of Potential Labor Mobility. This index allows to tackle issues of reverse causality and potentially confounding effects from strategic competition. Estimates show that increasing labor mobility accounts for a considerable part of lower tax burdens. Furthermore, the reduction is found to be constant across brackets of taxable income.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL: http://ub-madoc.bib.uni-mannheim.de/32590/1/Protte_12%2D20.pdf
    Download Restriction: no

    Paper provided by University of Mannheim, Department of Economics in its series Working Papers with number 12-20.

    as
    in new window

    Length:
    Date of creation: 2012
    Date of revision:
    Handle: RePEc:mnh:wpaper:32590
    Contact details of provider: Postal: 68131 Mannheim
    Phone: +49 621 181 1776
    Fax: +49 621 181 1774
    Web page: http://www2.vwl.uni-mannheim.de/10.1.html
    Email:


    More information through EDIRC

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

    as in new window
    1. Elhanan Helpman & Oleg Itshoki & Stephen Redding, 2009. "Inequality and unemployment in a global economy," LSE Research Online Documents on Economics 25501, London School of Economics and Political Science, LSE Library.
    2. Alesina, Alberto F & Algan, Yann & Cahuc, Pierre & Giuliano, Paola, 2010. "Family Values and the Regulation of Labor," CEPR Discussion Papers 7688, C.E.P.R. Discussion Papers.
    3. Gibson, John & McKenzie, David, 2009. "The microeconomic determinants of emigration and return migration of the best and brightest : evidence from the Pacific," Policy Research Working Paper Series 4965, The World Bank.
    4. Head, Keith & Mayer, Thierry & Ries, John, 2008. "The Erosion of Colonial Trade Linkages After Independence," CEPR Discussion Papers 6951, C.E.P.R. Discussion Papers.
    5. Alain Trannoy, Laurent Simula and, 2009. "Optimal Income Tax under the Threat of Migration by Top-Income Earners," Working Paper Series, Center for Fiscal Studies 2009:8, Uppsala University, Department of Economics.
    6. Grogger, Jeffrey & Hanson, Gordon H., 2011. "Income maximization and the selection and sorting of international migrants," Journal of Development Economics, Elsevier, vol. 95(1), pages 42-57, May.
    7. Anna Mayda, 2010. "International migration: a panel data analysis of the determinants of bilateral flows," Journal of Population Economics, Springer, vol. 23(4), pages 1249-1274, September.
    8. Ran Abramitzky, 2008. "The Limits of Equality: Insights from the Israeli Kibbutz," The Quarterly Journal of Economics, MIT Press, vol. 123(3), pages 1111-1159, August.
    9. Docquier, Frédéric & Ozden, Caglar & Peri, Giovanni, 2011. "The Labor Market Effects of Immigration and Emigration in OECD Countries," IZA Discussion Papers 6258, Institute for the Study of Labor (IZA).
    10. Emmanuel Saez & Joel Slemrod & Seth H. Giertz, 2012. "The Elasticity of Taxable Income with Respect to Marginal Tax Rates: A Critical Review," Journal of Economic Literature, American Economic Association, vol. 50(1), pages 3-50, March.
    11. Chiara Franzoni & Giuseppe Scellato & Paula Stephan, 2012. "Foreign Born Scientists: Mobility Patterns for Sixteen Countries," NBER Working Papers 18067, National Bureau of Economic Research, Inc.
    12. Ethan G. Lewis, 2011. "Immigrant-Native Substitutability: The Role of Language Ability," NBER Working Papers 17609, National Bureau of Economic Research, Inc.
    13. Kleven, Henrik & Landais, Camille & Saez, Emmanuel, 2010. "Taxation and International Migration of Superstars: Evidence from the European Football Market," CEPR Discussion Papers 8134, C.E.P.R. Discussion Papers.
    14. Francesc Ortega & Giovanni Peri, 2012. "The Effect of Income and Immigration Policies on International Migration," NBER Working Papers 18322, National Bureau of Economic Research, Inc.
    15. Goldmann, Gustave & Sweetman, Arthur & Warman, Casey, 2011. "The Portability of New Immigrants' Human Capital: Language, Education and Occupational Matching," IZA Discussion Papers 5851, Institute for the Study of Labor (IZA).
    16. Dani Rodrik, 1996. "Why Do More Open Economies Have Bigger Governments?," NBER Working Papers 5537, National Bureau of Economic Research, Inc.
    17. Wilson, John Douglas, 1999. "Theories of Tax Competition," National Tax Journal, National Tax Association, vol. 52(n. 2), pages 269-304, June.
    18. James Mitchell & Nigel Pain & Rebecca Riley, 2011. "The drivers of international migration to the UK: A panel‐based Bayesian model averaging approach," Economic Journal, Royal Economic Society, vol. 121(557), pages 1398-1444, December.
    19. Pierre Cahuc & André Zylberberg, 2004. "Labor Economics," MIT Press Books, The MIT Press, edition 1, volume 1, number 026203316x, June.
    20. Ran Abramitzky, 2008. "The Limits of Equality: Insights from the Israeli Kibbutz," Discussion Papers 07-048, Stanford Institute for Economic Policy Research.
    21. Janeba, Eckhard & Heinemann, Friedrich, 2011. "Viewing tax policy through party-colored glasses: What German politicians believe," MPRA Paper 33096, University Library of Munich, Germany.
    22. Mirrlees, James A, 1971. "An Exploration in the Theory of Optimum Income Taxation," Review of Economic Studies, Wiley Blackwell, vol. 38(114), pages 175-208, April.
    Full references (including those not matched with items on IDEAS)

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:mnh:wpaper:32590. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Katharina Rautenberg)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.