Taxation and the International Mobility of Inventors

Akcigit, Ufuk; Baslandze, Salomé; Stantcheva, Stefanie

doi:10.2139/ssrn.2576805

Cited by 9 publications

(12 citation statements)

References 47 publications

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“…A number of papers investigate the Roy/Borjas model applied to internal migration, including Borjas et al (1992), Dahl (2002), Abramitzky (2009), andBartolucci et al (2014). 10 Recent papers have highlighted the role of taxes for the migration of inventors and soccer players (Akcigit et al, 2016, Kleven et al, 2013 graduation. 12 The surveys are based on a stratified cluster sampling, with fields of study, degree types, and universities as strata (Grotheer et al, 2012) migrating part-time workers are more likely to be tied movers (see Borjas and Bronars, 1991;Junge et al, 2014).…”

Section: Data On University Graduatesmentioning

confidence: 99%

The Selection of High-Skilled Emigrants

Parey

Ruhose

Waldinger

et al. 2017

The Review of Economics and Statistics

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We measure selection among high-skilled emigrants from Germany using predicted earnings. Migrants to less equal countries are positively selected relative to nonmigrants, while migrants to more equal countries are negatively selected, consistent with the prediction in Borjas (1987). Positive selection to less equal countries reflects university quality and grades, and negative selection to more equal countries reflects university subject and gender. Migrants to the United States are highly positively selected and concentrated in STEM fields. Our results highlight the relevance of the Borjas model for high-skilled individuals when credit constraints and ⇤ Matthias Parey: University of Essex and Institute for Fiscal Studies, m.parey@es-sex.ac.uk, Jens Ruhose: Leibniz Universität Hannover, ruhose@wipol.uni-hannover.de,

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Section: Data On University Graduatesmentioning

confidence: 99%

The Selection of High-Skilled Emigrants

Parey

Ruhose

Waldinger

et al. 2017

The Review of Economics and Statistics

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“…As stark and asymmetric as these high-skilled patterns are, they become even more accentuated at the very highest skill levels (Wasmer et al 2007, Akcigit et al 2016. This is true in almost every highskilled profession, in academia, entertainment, entrepreneurship, literature, medicine, science and sports.…”

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confidence: 99%

High-Skilled Migration and Agglomeration

Kerr

Özden

et al. 2017

Annu. Rev. Econ.

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This paper reviews recent research regarding high-skilled migration. We adopt a data-driven perspective, bringing together and describing several ongoing research streams that range from the construction of global migration databases, to the legal codification of national policies regarding highskilled migration, to the analysis of patent data regarding cross-border inventor movements. A common theme throughout this research is the importance of agglomeration economies for explaining high-skilled migration. We highlight some key recent findings and outline major gaps that we hope will be tackled in the near future.

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“…Under conservative assumptions about life expectancy and discount rate, the present value of taxes paid by very high income taxpayers can easily exceed this amount. "2 Kleven et al (2013) and Akcigit et al (2016) are notable exceptions. They focus on selected subgroups of the population for which the authors have been able to assemble the information needed without access to individual income data linked across countries.…”

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confidence: 99%

“…2 Kleven et al (2013) and Akcigit et al (2016) are notable exceptions. They focus on selected subgroups of the population for which the authors have been able to assemble the information needed without access to individual income data linked across countries.…”

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confidence: 99%

Relocation of the Rich: Migration in Response to Top Tax Rate Changes from Spanish Reforms

Agrawal

Foremny

2019

The Review of Economics and Statistics

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A recent Spanish tax reform granted regions the authority to set income tax rates, resulting in substantial tax differentials. We use individual-level information from Social Security records over a period of one decade. Conditional on moving, taxes have a significant effect on location choice. A one percent increase in the net of tax rate for a region relative to others increases the probability of moving to that region by 1.7 percentage points. Focusing on the stock of top-taxpayers, we estimate an elasticity of the number of top taxpayers with respect to net-of-tax rates of 0.85. Using this elasticity, a theoretical model implies that the mechanical increase in tax revenue due to higher tax rates is larger than the loss in tax revenue from the out-flow of migration. High-income taxpayers may be literally "worth their weight in gold" to the government where they reside.1 As a means of tax avoidance, individuals may move in response to tax differentials resulting from residence based local income taxes. earning 300,000 Euros, this amounts to a tax differential of 10,000 Euros. These disparities in regional top tax rates led the popular press to dub low-tax regions such as Madrid as "tax havens" or one of several "paradises on Earth."Research on migration requires linked data of individuals in the country of origin and destination, which is fairly complicated to obtain. 2 Exploiting sub-national variation is therefore an appealing alternative. However, personal income in most countries is taxed at the federal level and only a few countries tax personal income at the regional or1 The quoted phrase comes from Wildasin (2009), who writes: "at current prices ($900/oz.), an average adult male's weight-equivalent (190 lbs.) of gold is worth around $2.7 million. Under conservative assumptions about life expectancy and discount rate, the present value of taxes paid by very high income taxpayers can easily exceed this amount."2 Kleven et al. (2013) and Akcigit et al. (2016) are notable exceptions. They focus on selected subgroups of the population for which the authors have been able to assemble the information needed without access to individual income data linked across countries. Bakija and Slemrod (2004), Moretti and Wilson (2017) and Young et al. (2016) 4 We make several contributions relative to Young et al. (2016). First, we study migration patterns of the rich (above 90,000 Euros) and not just the very rich (millionaires). We also study migration in a setting where regional taxes are purely residence-based; in the United States, taxes may have a residence and employment-based component. Finally, we show heterogeneous effects by industry and occupation. 2we study migration using a random sample of population level administrative data for a complete panel of all regions in a country; Young et al. (2016) have similar data and a single state analysis includes Young and Varner (2011).5 This administrative data provides us detailed information on industry and occupation that allows us to determine the g...

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Taxation and the International Mobility of Inventors

Cited by 9 publications

References 47 publications

The Selection of High-Skilled Emigrants

The Selection of High-Skilled Emigrants

High-Skilled Migration and Agglomeration

Relocation of the Rich: Migration in Response to Top Tax Rate Changes from Spanish Reforms

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