Tax Burden and Migration: A Political Economy Perspective
Efraim Sadka · Assaf Razin
Jun 1997 · International Monetary Fund
Ebook
13
Pages
About this ebook
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.
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