Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/282866 
Year of Publication: 
2023
Series/Report no.: 
Tinbergen Institute Discussion Paper No. TI 2023-053/V
Publisher: 
Tinbergen Institute, Amsterdam and Rotterdam
Abstract: 
We study the impact of a policy change in the Netherlands that reduced preferential tax treatment duration for high-skilled migrants arriving from specific countries in certain years. Utilizing comprehensive tax and population data, we document substantial tax-induced emigration responses, primarily driven by the top 1% of earners. Highly mobile individuals within the top 5% also emigrate sooner, particularly to competing countries offering tax-breaks to attract skilled workers. Crucially, we uncover no change in mobility behavior among lower-earning workers. The increased tax receipts from lower-income individuals who remain offset the loss from fleeing high earners, making the policy fiscally cost-neutral.
Subjects: 
Taxation
immigration
labor income
Netherlands
JEL: 
F22
H31
J61
Document Type: 
Working Paper

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