Tax Burden and Migration: A Political Economy Perspective
13 Pages Posted: 15 Feb 2006
Date Written: June 1997
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.
JEL Classification: F22, H2, J1
Suggested Citation: Suggested Citation