Taxing capital and labor when both factors are imperfectly mobile internationally

Hippolyte d'Albis, Agnès Benassy-Quere and Amélie Schurich-Rey
Additional contact information
Amélie Schurich-Rey: UP1 - Université Paris 1 Panthéon-Sorbonne

Working Papers from HAL

Abstract: We revisit the standard theoretical model of tax competition to consider imperfect mobility of both capital and labor. We show that the mobility of one factor affects the taxation of both factors, and that the race-to-the-bottom narrative (with burden shifting) applies essentially to capital exporting countries. We test our predictions for a panel of 28 OECD countries over 1997-2014. We find capital taxation to be less sensitive to capital mobility in net capital importing countries than for net capital exporters. We also show that labor mobility has a negative impact on labor taxation but a positive impact on capital taxation. Finally, we show evidence of a non-linear effect of labor mobility on capital taxation depending on the level of skills.

Keywords: tax competition; globalization; imperfect factor mobility (search for similar items in EconPapers)
Date: 2018-07
New Economics Papers: this item is included in nep-pbe and nep-pub
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-01851492v1
References: Add references at CitEc
Citations:

Downloads: (external link)
https://shs.hal.science/halshs-01851492v1/document (application/pdf)

Related works:
Journal Article: Taxing capital and labor when both factors are imperfectly mobile internationally (2022)
Working Paper: Taxing capital and labor when both factors are imperfectly mobile internationally (2022)
Working Paper: Taxing capital and labor when both factors are imperfectly mobile internationally (2022)
Working Paper: Taxing capital and labor when both factors are imperfectly mobile internationally (2021)
Working Paper: Taxing capital and labor when both factors are imperfectly mobile internationally (2021)
Working Paper: Taxing capital and labor when both factors are imperfectly mobile internationally (2019)
Working Paper: Taxing capital and labor when both factors are imperfectly mobile internationally (2019)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:wpaper:halshs-01851492

Access Statistics for this paper

More papers in Working Papers from HAL
Bibliographic data for series maintained by CCSD ().