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Tax Burden and Migration: A Political Economy PerspectiveAssaf RazinTel Aviv University - Eitan Berglas School of Economics; National Bureau of Economic Research (NBER); CESifo (Center for Economic Studies and Ifo Institute for Economic Research); Centre for Economic Policy Research (CEPR) Efraim SadkaTel Aviv University - Eitan Berglas School of Economics; National Bureau of Economic Research (NBER); CESifo (Center for Economic Studies and Ifo Institute for Economic Research); Institute for the Study of Labor (IZA) December 1996 NBER Working Paper No. w5850 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 without migration, even though the migrants (naturally) join the pro-tax cum transfer coalition.
Number of Pages in PDF File: 16 working papers seriesDate posted: June 30, 2000Suggested CitationContact Information
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