The Taxing Deed of Globalization
Peter Egger (),
Sergey Nigai () and
Nora Strecker ()
No 11259, CEPR Discussion Papers from C.E.P.R. Discussion Papers
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 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 middle-income workers. In 1994-2007, they experienced a globalization-induced rise in their personal income tax rate of around 1.5, whereas the top 1% of workers faced a reduction of approximately 1.5 percentage points.
Keywords: Globalization; Income taxes; International Trade; migration; Tax progressivity (search for similar items in EconPapers)
JEL-codes: F1 F6 H2 H3 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-eur, nep-pr~, nep-pbe, nep-pke and nep-pub
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Journal Article: The Taxing Deed of Globalization (2019)
Working Paper: The Taxing Deed of Globalization (2016)
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