On redistributive taxation under the threat of high-skill emigration

Alan Krause

Social Choice and Welfare, 2017, vol. 48, issue 4, No 8, 845-856

Abstract: Abstract The increasing international mobility of high-skill individuals is often seen as posing a threat to domestic social welfare, by limiting the ability of governments to tax these individuals and redistribute to the poor. In this paper, we examine a simple dynamic nonlinear income tax model without commitment. In this setting, it is shown that the threat of emigration by high-skill individuals facilitates redistribution and increases social welfare in the short-run, and has no effect on social welfare over the long-run.

Keywords: Social Welfare; Participation Constraint; Reservation Utility; Redistributive Taxation; Utilitarian Social Welfare Function (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (3)

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DOI: 10.1007/s00355-017-1038-8

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