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Peter Egger (), Sergey Nigai () and Nora Strecker ()

KOF Analysen, 2019, vol. 13, issue 3, 83-93

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 the 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 middleincome workers. In 1994–2007, these workers experienced a globalization-induced rise in their personal income tax rate of around 1.5 percentage points, 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)
Date: 2019
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Handle: RePEc:kof:anskof:v:13:y:2019:i:3:p:83-93