Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/270736 
Year of Publication: 
2023
Series/Report no.: 
GLO Discussion Paper No. 1258
Publisher: 
Global Labor Organization (GLO), Essen
Abstract: 
Prior studies show that taxes matter for the residential locations of high-income earners. But, states raise a significant share of revenue from nonresidents. Using variation in state tax rates, we provide causal evidence on the effect of the net-of-tax rate on the location of labor supply for professional golfers. State taxes induce high-income earners to shift employment to low-tax states without a residence change. The elasticity of working in a state is 0.34, and consistent with superstar phenomenon, increases with earnings. Our results suggest a novel margin of mobility responses for top-earners: the spatial relocation of labor supply by nonresidents.
Subjects: 
state taxes
superstars
taxing the rich
avoidance
mobility
highfrequency labor supply
JEL: 
J22
J61
H26
H73
R50
Document Type: 
Working Paper

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