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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.

Suggested Citation

  • Qari, Salmai & Konrad, Kai A. & Geys, Benny, 2009. "Patriotism, Taxation and International Mobility," IZA Discussion Papers 4120, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp4120
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    Cited by:

    1. Salmai Qari & Kai Konrad & Benny Geys, 2012. "Patriotism, taxation and international mobility," Public Choice, Springer, vol. 151(3), pages 695-717, June.
    2. Doerrenberg, Philipp & Duncan, Denvil & Fuest, Clemens & Peichl, Andreas, 2012. "Nice Guys Finish Last: Are People with Higher Tax Morale Taxed More Heavily?," IZA Discussion Papers 6275, Institute of Labor Economics (IZA).
    3. Nicolae-Bogdan Ianc & Thierry Baudassé, 2021. "How Can Culture Affect Taxation? A Postmaterialism Value Approach," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 63(3), pages 466-488, September.
    4. Konrad, Kai A. & Qari, Salmai, 2012. "The Last Refuge of a Scoundrel?," Munich Reprints in Economics 13960, University of Munich, Department of Economics.
    5. Colin R. Kuehnhanss & Joshua Holm & Bram Mahieu, 2021. "Rally ’round which flag? Terrorism’s effect on (intra)national identity," Public Choice, Springer, vol. 188(1), pages 53-74, July.
    6. Tareq Bani-Khalid & Ahmad Farhan Alshira’h & Malek Hamed Alshirah, 2022. "Determinants of Tax Compliance Intention among Jordanian SMEs: A Focus on the Theory of Planned Behavior," Economies, MDPI, vol. 10(2), pages 1-20, January.
    7. Nicolae-Bogdan IANC & Thierry BAUDASSE, 2021. "How can culture affect taxation? A postmaterialism value approach," LEO Working Papers / DR LEO 2848, Orleans Economics Laboratory / Laboratoire d'Economie d'Orleans (LEO), University of Orleans.
    8. Stergios Skaperdas & Patrick A. Testa, 2023. "National Identity, Public Goods, and Modern Economic Development," CESifo Working Paper Series 10358, CESifo.
    9. Daniele, Gianmarco & Geys, Benny, 2015. "Interpersonal trust and welfare state support," European Journal of Political Economy, Elsevier, vol. 39(C), pages 1-12.
    10. 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.
    11. 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," Wittener Diskussionspapiere zu alten und neuen Fragen der Wirtschaftswissenschaft 14/2011, Witten/Herdecke University, Faculty of Management and Economics.
    12. Tamilina, Larysa, 2021. "The Dynamics of National Identity and Pride Formation in Ukraine," MPRA Paper 111033, University Library of Munich, Germany.
    13. Tobias König & Andreas Wagener, 2012. "Culture and Tax Structures," CESifo Working Paper Series 3748, CESifo.
    14. Yuki, Kazuhiro, 2023. "Social Identity, Redistribution, and Development," MPRA Paper 115965, University Library of Munich, Germany.
    15. Freier, Ronny & Geys, Benny & Holm, Joshua, 2016. "Religious heterogeneity and fiscal policy: Evidence from German reunification," Journal of Urban Economics, Elsevier, vol. 94(C), pages 1-12.
    16. Aziz, Nusrate & Chowdhury, Murshed & Cooray, Arusha, 2022. "Why do people from wealthy countries migrate?," European Journal of Political Economy, Elsevier, vol. 73(C).
    17. Alejandro Esteller-Moré & Umberto Galmarini, 2023. "Optimal Tax Administration Responses to Fake Mobility and Underreporting," Working Papers 2023/03, Institut d'Economia de Barcelona (IEB).
    18. Holm, Joshua, 2016. "A model of redistribution under social identification in heterogeneous federations," Journal of Public Economics, Elsevier, vol. 143(C), pages 39-48.

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    More about this item

    Keywords

    redistribution; taxation; international mobility; patriotism; fiscal competition;
    All these keywords.

    JEL classification:

    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • H73 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Interjurisdictional Differentials and Their Effects

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