The Effect of State Taxes on the Geographical Location of Top Earners: Evidence from Star Scientists

Daniel Wilson and Enrico Moretti

No 1566, 2016 Meeting Papers from Society for Economic Dynamics

Abstract: We quantify how sensitive is migration by star scientist to changes in personal and business tax differentials across states. We uncover large, stable, and precisely estimated effects of personal and corporate taxes on star scientists’ migration patterns. The long run elasticity of mobility relative to taxes is 1.8 for personal income taxes, 1.9 for state corporate income tax and -1.7 for the investment tax credit. While there are many other factors that drive when innovative individual and innovative companies decide to locate, there are enough firms and workers on the margin that state taxes matter

Date: 2016
New Economics Papers: this item is included in nep-geo, nep-mig, nep-pbe and nep-ure
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Citations: View citations in EconPapers (4)

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Related works:
Journal Article: The Effect of State Taxes on the Geographical Location of Top Earners: Evidence from Star Scientists (2017)
Working Paper: The Effect of State Taxes on the Geographical Location of Top Earners: Evidence from Star Scientists (2015)
Working Paper: The effect of state taxes on the geographical location of top earners: evidence from star scientists (2015)
Working Paper: The Effect of State Taxes on the Geographical Location of Top Earners: Evidence from Star Scientists (2015)
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