Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/305666 
Year of Publication: 
2024
Series/Report no.: 
IZA Discussion Papers No. 17224
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
Brain drain is a key policy concern for many countries. In this paper we study whether tax incentives are an effective policy to attract high-skilled expatriates back to their home country, exploiting a generous income tax break for Italian returnees. Using administrative data and a Triple Differences design, we find that eligible individuals are 27% more likely to return to Italy. Additionally, we uncover significant effects throughout the wage distribution, revealing that tax-induced migration is a broad phenomenon beyond top earners. A cost-benefit analysis shows that the tax scheme can pay for itself by targeting young high-skilled individuals.
Subjects: 
brain drain
tax incentives
return migration
personal income tax
JEL: 
F22
H24
H31
J61
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.