Paper by Lisa Marie Timm, Paul Muller and Massimo Giuliodori will appear in the American Economic Journal: Applied Economics
The paper 'Tax Incentives for Migrants With Mid-Level Earnings: Evidence From the Netherlands' by Lisa Marie Timm (University of Amsterdam), Paul Muller (Vrije Universiteit Amsterdam) and Massimo Giuliodori (University of Amsterdam) is forthcoming in the American Economic Journal: Applied Economics.
Abstract:
We examine how income taxes affect international mobility and wages. We study a Dutch preferential tax scheme for migrants, which introduced an income threshold for eligibility in 2012. The threshold is low relative to similar schemes in other countries, thereby offering eligibility to migrants with mid-level earnings. We find that migration more than doubles closely above the income threshold, while migration below the threshold remains unchanged. These effects appear to be driven by additional migration, while wage bargaining responses are limited. We estimate a migration elasticity ranging between 1.6-2.7, somewhat higher than most studies on high-income migrants have found.
Article citation
Lisa Marie Timm, Paul Muller and Massimo Giuliodori. 2024. "Tax Incentives for Migrants With Mid-Level Earnings: Evidence From the Netherlands" American Economic Journal: Applied Economics, forthcoming, link to publication.