Taxing Top Wealth: Migration Responses and their Aggregate Economic Implications

Katrine Jakobsen, Henrik Kleven, Jonas Kolsrud, Camille Landais and Mathilde Muñoz

No 32153, NBER Working Papers from National Bureau of Economic Research, Inc

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%.

JEL-codes: D31 E21 H20 H31 L26 (search for similar items in EconPapers)
Date: 2024-02
New Economics Papers: this item is included in nep-int, nep-mig, nep-pbe, nep-pub and nep-ure
Note: CF LS PE PR
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