Tax Burden and Migration: A Political Economy Perspective

Efraim Sadka and Assaf Razin

No 1997/078, IMF Working Papers from International Monetary Fund

Abstract: The extent of taxation and redistribution policy is generally determined at a political-economy equilibrium by a balance between those who gain and those who lose from a more extensive tax-transfer policy. In a stylized model of migration and human capital formation, we find, somewhat against conventional wisdom, that low-skill migration may lead to a lower tax burden and less redistribution than no migration, even though the migrants join the pro-tax coalition.

Keywords: WP; math; mover accent; migration quota; tax-transfer policy; equilibrium tax rate; equilibrium migration condition; income gap; low-skill migrant; Migration; Consumption; Tax incidence (search for similar items in EconPapers)
Pages: 13
Date: 1997-06-01
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Citations: View citations in EconPapers (2)

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Related works:
Working Paper: Tax Burden and Migration: A Political Economy Perspective (1996)
Working Paper: Tax Burden and Migration: A Political Economy Perspective (1996)
Working Paper: Tax Burden and Migration: A Political Economy Perspective (1996)
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Persistent link: https://EconPapers.repec.org/RePEc:imf:imfwpa:1997/078

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