TY - JOUR
T1 - Taxation and international migration of superstars
T2 - Evidence from the european football market
AU - Kleven, Henrik Jacobsen
AU - Landais, Camille
AU - Saez, Emmanuel
PY - 2013
Y1 - 2013
N2 - We analyze the effects of top tax rates on international migration of football players in 14 European countries since 1985. Both country case studies and multinomial regressions show evidence of strong mobility responses to tax rates, with an elasticity of the number of foreign (domestic) players to the net-of-tax rate around one (around 0.15). We also find evidence of sorting effects (low taxes attract highability players who displace low-ability players) and displacement effects (low taxes on foreigners displace domestic players). Those results can be rationalized in a simple model of migration and taxation with rigid labor demand.
AB - We analyze the effects of top tax rates on international migration of football players in 14 European countries since 1985. Both country case studies and multinomial regressions show evidence of strong mobility responses to tax rates, with an elasticity of the number of foreign (domestic) players to the net-of-tax rate around one (around 0.15). We also find evidence of sorting effects (low taxes attract highability players who displace low-ability players) and displacement effects (low taxes on foreigners displace domestic players). Those results can be rationalized in a simple model of migration and taxation with rigid labor demand.
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U2 - 10.1257/aer.103.5.1892
DO - 10.1257/aer.103.5.1892
M3 - Article
AN - SCOPUS:84882367133
SN - 0002-8282
VL - 103
SP - 1892
EP - 1924
JO - American Economic Review
JF - American Economic Review
IS - 5
ER -