On the taxing of migrants' earnings while retaining a migrant workforce

Oded Stark and Wiktor Budzinski

International Review of Economics & Finance, 2018, vol. 57, issue C, 151-155

Abstract: We study policies that are aimed at retaining a migrant workforce in a Gulf State while introducing a tax on migrant earnings. We single out Qatar as a case study. We consider two types of migrants: target migrants, and non-target migrants. If migrants are target migrants, we show that in order to neutralize the effect of a tax on their earnings, Qatar needs to extend the length of time migrants are allowed to stay. Such a scheme can work even when the migrants experience utility loss from staying longer in Qatar. If migrants are non-target migrants, we show that implementation of a lottery scheme in which the prizes are life-long residency in Qatar can “compensate” for the imposition of the tax. In both cases, we present numerical examples that illustrate the magnitudes involved.

Keywords: Migration; Taxing migrants; Target migrants; Non-target migrants (search for similar items in EconPapers)
JEL-codes: C6 F22 J33 J41 (search for similar items in EconPapers)
Date: 2018
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Working Paper: On the taxing of migrants’ earnings while retaining a migrant workforce (2018)
Working Paper: On the taxing of migrants' earnings while retaining a migrant workforce (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:reveco:v:57:y:2018:i:c:p:151-155

DOI: 10.1016/j.iref.2018.05.007

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