Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/147349
Authors: 
Blumkin, Tomer
Margalioth, Yoram
Strawczynski, Michel
Year of Publication: 
2016
Series/Report no.: 
CESifo Working Paper 6095
Abstract: 
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 from Israel. According to our findings, this effect is stronger for workers in the low-tech sector than for their high-tech counterparts, as the former appear to be more sensitive to changes in net wages. Moreover, the effect is stronger for younger workers who benefit from permanent tax reductions for a longer period during their careers, relative to older workers.
Subjects: 
permanent tax cut
emigration
JEL: 
H20
J38
J61
Document Type: 
Working Paper

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