In this paper we introduce an analytical framework for analyzing the effect of permanent income tax reductions on emigration and conduct an empirical analysis of their impact, based on the Israeli tax reductions during 2004-2010. We find that permanent tax reductions reduce the emigration flows...

In this paper we introduce an analytical framework for analyzing the effect of permanent income tax reductions on emigration and conduct an empirical analysis of their impact, based on the Israeli tax reductions during 2004-2010. We find that permanent tax reductions reduce the emigration flows...

The Israeli EITC program is based on individual incomes, unlike the EITC programs in the US and the UK, which supplement low-income families' earnings according to the combined family income. Using a large administrative panel dataset of tax and benefit records, and the natural experiment...