Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/282343 
Year of Publication: 
2023
Series/Report no.: 
CESifo Working Paper No. 10655
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
We study the impact of taxation on the location choices of individuals and tax bases in Italy. We exploit some recent tax decentralization reforms, which granted regions and municipalities greater power in setting income tax rates across brackets. Combining granular micro-level data on tax residence transfers with tax rate variations both within and across locations, we show that taxation significantly shapes location decisions. The mobility response greatly varies across the income distribution, with higher responsiveness among top incomes. Yet, our estimates imply that revenue losses due to tax-induced mobility are small, making local redistribution feasible at least over the medium-run.
Subjects: 
local income taxation
migration
tax decentralization
JEL: 
H24
H71
J61
Document Type: 
Working Paper
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