Working Papers:
Tax incentives for migrants with mid-level earnings: evidence from the Netherlands
(joint with M. Giuliodori and P. Muller)
Status: Revise & Resubmit at AEJ: Applied.
Abstract:
This paper examines how income taxes affect international mobility and wages of migrants. 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. Using administrative data, we find that migration in the income range closely above the threshold more than doubles, while there is little support for a decrease below the threshold. These effects appear to be driven mainly by additional migration, while wage bargaining responses are limited. We conclude that the reform of the tax scheme was very effective in attracting more migrants.
Keywords: international migration, income tax benefits, wage bargaining, bunching.
Full paper: Tinbergen Discussion Paper No. 22-068/V, IZA Working Paper No. 15582
News: Hervorming expatregeling heeft tot aanzienlijke toename migranten geleid (ESB, in Dutch)
Work in Progress:
The impact of multinational firms on local labour markets
Data access funded by "A Sustainable Future" (ASF): Project description
High-earning migrants and housing markets
Data access funded by "A Sustainable Future" (ASF): Project description