Fiscal harmonization and migration in the European Union
Socrates Karidis () and
Michael A. Quinn
Brussels Economic Review, 2006, vol. 49, issue 4, 333-352
The focus of this paper is the impact of fiscal policies on international migration flows. The Tiebout hypothesis proposes that individuals consider differences in tax rates and social spending when making migration decisions. While evidence of the Tiebout hypothesis has been found in several domestic U.S. and Canadian studies, this is the first paper to test the Tiebout hypothesis using bilateral international migration flows. The Maastricht treaty has created a unique opportunity to study migration in an international context by removing legal barriers to migration within the European Union. Using data from EU countries throughout the 1980s and 1990s, this paper finds significant statistical support for the Tiebout hypothesis with regards to international migration flows. These results suggest that achieving greater fiscal harmonization across countries would lower migration flows. The results also imply that EU countries which are resistant to achieving fiscal harmonization with members may, as a result, have problems in attaining their other goal of reducing immigration (inward) from these countries.
Keywords: Migration; European Union; Fiscal Surplus; Taxes; Social Spending (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed
Downloads: (external link)
https://dipot.ulb.ac.be/dspace/bitstream/2013/13238/1/ber-1115.pdf ber-1115 (application/pdf)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:bxr:bxrceb:y:2006:v:49:i:4:p:333-352
Ordering information: This journal article can be ordered from
http://hdl.handle.ne ... ulb.ac.be:2013/13238
Access Statistics for this article
More articles in Brussels Economic Review from ULB -- Universite Libre de Bruxelles Contact information at EDIRC.
Bibliographic data for series maintained by Benoit Pauwels ().