Abstract

http://ssrn.com/abstract=1992231
 


 



Competition for Migrants in a Federation: Tax or Transfer Competition?


Marko Koethenbuerger


ETH Zurich - Department of Management, Technology and Economics; KOF Swiss Economic Institute; CESifo (Center for Economic Studies and Ifo Institute)

January 26, 2012

CESifo Working Paper Series No. 3709

Abstract:     
The paper provides an equilibrium analysis of how countries compete for migrants. The type of competition (tax or transfer competition) depends on whether the competing countries have similar policy preferences. With symmetric preferences, countries compete in taxes for migrants. With asymmetric preferences, migration competition takes place in income support levels. The results are robust to the degree of mobility and to whether high-income or low-income households are mobile. The results are relevant, e.g., for federal policies that tackle inefficient migration competition and for evaluating whether a country may wish to adopt unilateral ‘migration-purchase’ policies.

Number of Pages in PDF File: 23

Keywords: migration, redistribution, income taxation, government strategy, endogenous type of competition

JEL Classification: H700, J200, F200

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Date posted: January 26, 2012  

Suggested Citation

Koethenbuerger, Marko, Competition for Migrants in a Federation: Tax or Transfer Competition? (January 26, 2012). CESifo Working Paper Series No. 3709. Available at SSRN: http://ssrn.com/abstract=1992231

Contact Information

Marko Koethenbuerger (Contact Author)
ETH Zurich - Department of Management, Technology and Economics ( email )
Weinbergstrasse 35
Zurich, 8092
Switzerland
+41 44 6325446 (Phone)
KOF Swiss Economic Institute ( email )
Zurich
Switzerland
CESifo (Center for Economic Studies and Ifo Institute)
Poschinger Str. 5
Munich, DE-81679
Germany
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