focus on migration. The fact that knowledge diffusion requires direct human interaction implies that the international … diffusion of knowledge should follow the pattern of international migration. This is what this paper documents. Our main finding … is that migration, and particularly skilled immigration, is a strong and robust driver of productive knowledge diffusion …

focus on migration. The fact that knowledge diffusion requires direct human interaction implies that the international … diffusion of knowledge should follow the pattern of international migration. This is what this paper documents. Our main finding … is that migration, and particularly skilled immigration, is a strong and robust driver of productive knowledge diffusion …

, productivity-enhancing migration margin, we determine how regional inequality and labor mobility affect optimal redistribution … are reduced by several percentage points if productivity enhancing migration is taken into account. Additionally, we study …

- enhancing migration margin, we explore the implications of regional productivity differences for the design of optimal tax …. With intra-regional migration marginal tax rates tend to be reduced and negative tax rates are possible. Our simulations …

tax schedules are not allowed to differ across regions, productivity-enhancing interregional migration exerts a downward …-(low-)productivity regions should be corrected downwards (upwards) relative to the benchmark without migration. Simulations of the productivity … differences between metropolitan and other areas of the US indicate that migration affects the optimal tax-transfer schedule more …

Combining an intensive labor supply margin with an extensive, productivity-enhancing migration margin, we determine how …-enhancing interregional migration exerts a downward pressure on marginal tax rates. Allowing for regionally differentiated taxation with … productivity-increasing internal migration constitutes only a minor constraint on regionally undifferentiated redistributive …