Effects of Taxation on Migration: Some Evidence for the ASEAN and APEC Economies. Asian Development Review, Vol. 28(1), pp. 22-50
Claus, Edda; Claus, Iris | March 2011
Abstract
This paper investigates the effects of taxation on migration. It develops a
stylized, two-country model to examine the impact of taxes on labor mobility.
The theoretical predictions that taxes affect migration decisions and that
educated workers are more responsive to taxation are supported by some
empirical evidence for the economies of the Association of Southeast Asian
Nations and the Asia-Pacific Economic Cooperation. The empirical
application also shows that average tax rates have a larger impact on migration
choices than marginal rates. Average tax rates are most important for migrants
with secondary education, while marginal rates have a greater influence on the
decisions of migrants with tertiary education compared to secondary-educated
migrants. The finding that taxation affects migration decisions, in particular of
educated migrants, has important policy implications.
Citation
Claus, Edda; Claus, Iris. 2011. Effects of Taxation on Migration: Some Evidence for the ASEAN and APEC Economies. Asian Development Review, Vol. 28(1), pp. 22-50. © Asian Development Bank. http://hdl.handle.net/11540/1661. License: CC BY 3.0 IGO.Citable URI
http://hdl.handle.net/11540/1661Metadata
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