The Taxing Deed of Globalization

Peter Egger, Sergey Nigai and Nora Strecker

No 11259, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: We examine the effects of globalization on the size and composition of tax revenues, worker-specific tax burdens, and effective average labor income tax rates using a unique international database on income tax calculators. We find that due to increasing mobility of firms and high-income workers, globalization led governments in OECD countries to seek tax revenues from alternative sources, specifically from employee-borne taxes paid by relatively less mobile middle-income workers. In 1994-2007, they experienced a globalization-induced rise in their personal income tax rate of around 1.5, whereas the top 1% of workers faced a reduction of approximately 1.5 percentage points.

Keywords: Globalization; Income taxes; Tax progressivity; International trade; Migration (search for similar items in EconPapers)
JEL-codes: F1 F6 H2 H3 (search for similar items in EconPapers)
Date: 2016-05
New Economics Papers: this item is included in nep-eur, nep-pr~, nep-pbe, nep-pke and nep-pub
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (19)

Downloads: (external link)
https://cepr.org/publications/DP11259 (application/pdf)

Related works:
Journal Article: The Taxing Deed of Globalization (2019)
Working Paper: The Taxing Deed of Globalization (2016)
Working Paper: The Taxing Deed of Globalization (2016)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cpr:ceprdp:11259

Ordering information: This working paper can be ordered from
https://cepr.org/publications/DP11259

Access Statistics for this paper

More papers in CEPR Discussion Papers from Centre for Economic Policy Research 33 Great Sutton Street, London EC1V 0DX, UK.
Bibliographic data for series maintained by CEPR ().