Tax Burden and Migration: A Political Economy Perspective

Author/Editor:

Efraim Sadka ; Assaf Razin

Publication Date:

June 1, 1997

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

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.

Series:

Working Paper No. 1997/078

Subject:

Consumption Education Migration National accounts Population and demographics Tax incidence Tax policy

English

Publication Date:

June 1, 1997

ISBN/ISSN:

9781451956283/1018-5941

Stock No:

WPIEA0781997

Pages:

13

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