Human Capital Mobility: Implications for Efficiency, Income Distribution, and Policy

39 Pages Posted: 24 May 2014

See all articles by David E. Wildasin

David E. Wildasin

University of Kentucky; CESifo (Center for Economic Studies and Ifo Institute for Economic Research); Institute for the Study of Labor (IZA); University of Oxford - Oxford University Centre for Business Taxation

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Abstract

Mobility of highly-skilled workers affects and is affected by labor market conditions, taxes, and other policies. This paper documents the demographic and fiscal importance of international migration, especially in aging societies, reviews the efficiency and distributional effects of mobility, and analyzes the economic incidence of fiscal transfers to low-skilled workers that are financed by taxes on imperfectly-mobile high-skilled workers in a dynamic model, distinguishing the short-run, transitional, and long-run gains and losses to contributors and beneficiaries.

Keywords: migration, taxes, redistribution, dynamic incidence

JEL Classification: J11, J24, J61, H2, H5

Suggested Citation

Wildasin, David E., Human Capital Mobility: Implications for Efficiency, Income Distribution, and Policy. IZA Discussion Paper No. 8199, Available at SSRN: https://ssrn.com/abstract=2441495 or http://dx.doi.org/10.2139/ssrn.2441495

David E. Wildasin (Contact Author)

University of Kentucky ( email )

Department of Economics
Lexington, KY 40546
United States

CESifo (Center for Economic Studies and Ifo Institute for Economic Research)

Poschinger Str. 5
Munich, DE-81679
Germany

Institute for the Study of Labor (IZA)

P.O. Box 7240
Bonn, D-53072
Germany

University of Oxford - Oxford University Centre for Business Taxation ( email )

Saïd Business School
Park End Street
Oxford, OX1 1HP
United Kingdom

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