Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/191782 
Year of Publication: 
2018
Series/Report no.: 
ZEF Discussion Papers on Development Policy No. 263
Publisher: 
University of Bonn, Center for Development Research (ZEF), Bonn
Abstract: 
We study policies that are aimed at retaining a migrant workforce in a Gulf State while introducing a tax on migrant earnings. We single out Qatar as a case study. We consider two types of migrants: target migrants, and non-target migrants. If migrants are target migrants, we show that in order to neutralize the effect of a tax on their earnings, Qatar needs to extend the length of time migrants are allowed to stay. Such a scheme can work even when the migrants experience utility loss from staying longer in Qatar. If migrants are non-target migrants, we show that implementation of a lottery scheme in which the prizes are life-long residency in Qatar can "compensate" for the imposition of the tax. In both cases, we present numerical examples that illustrate the magnitudes involved.
Subjects: 
Migration
Taxing migrants
Target migrants
Non-target migrants
JEL: 
C6
F22
J33
J41
Document Type: 
Working Paper

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