The Taxing Deed of Globalization

Peter Egger, Sergey Nigai and Nora Strecker

No 668, LIS Working papers from LIS Cross-National Data Center in Luxembourg

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)
Pages: 38 pages
Date: 2016-04
New Economics Papers: this item is included in nep-pbe and nep-pke
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Published in American Economic Review 109, no. 2 (2019): 353–90. https://doi.org/10.1257/aer.20160600.

Downloads: (external link)
http://www.lisdatacenter.org/wps/liswps/668.pdf (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:lis:liswps:668

Access Statistics for this paper

More papers in LIS Working papers from LIS Cross-National Data Center in Luxembourg Contact information at EDIRC.
Bibliographic data for series maintained by Piotr Paradowski ().