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Persistent link: https://www.econbiz.de/10013287618
In this paper we extend the zero tax at the top result obtained in the closed economy case with bounded skill distributions for the case of unbounded skill distributions in the presence of international labor mobility and tax competition. We show that in the equilibrium for the tax competition...
Persistent link: https://www.econbiz.de/10009540110
In this paper we employ a tax-competition model to demonstrate that in the presence of migration the re-distributive advantage of a non-linear income tax system over a linear (flat) one is significantly mitigated relative to the autarky (no-migration) equilibrium. When migration threats are...
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if highly productive labor is mobile. Extortionary governments' incentives for a policy that stimulates higher private … education efforts vanish; instead they have incentives to prevent individuals from mobility-increasing education investment. Tax …
Persistent link: https://www.econbiz.de/10014133447
extortionary government. The extortionary government in a closed economy has incentives to subsidize education in order to overcome … their education policies if highly productive labor is fully mobile. Extortionary governments' incentives for education … competition therefore reduces hold-up problems of time consistent extortionary taxation, but also introduces incentives that …
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We analyze a two-period modell where risk-averse students divide their time between risky education, leisure, and work. The educated can migrate. Wagetax financed transfer to students acts as an insurance, and increases both investment in education and demand for leisure. We drive sufficient...
Persistent link: https://www.econbiz.de/10011443239
We analyze a two-period modell where risk-averse students divide their time between risky education, leisure, and work. The educated can migrate. Wagetax financed transfer to students acts as an insurance, and increases both investment in education and demand for leisure. We drive sufficient...
Persistent link: https://www.econbiz.de/10013428263