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Title: Geographic Mobility and Redistribution

Citation Type: Miscellaneous

Publication Year: 2017

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Abstract: I study the effect of progressive taxation on internal migration and welfare using a new dynamic Roy model. The model features an arbitrary number of labor markets and finitely-lived agents, yet is analytically tractable. It predicts that a more progressive tax-transfer scheme reduces internal migration rates. The magnitude of this relation- ship is consistent with evidence from the OECD countries. The optimal time-varying sequence of tax progressivity features relatively high degree of tax progressivity early on, and lower tax progressivity at later dates. There are substantial welfare gains from letting the optimal degree of tax progressivity vary over the transition.

Url: https://ideas.repec.org/p/red/sed017/1079.html

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Authors: Coen-Pirani, Daniele

Publisher: University of Pittsburgh

Data Collections: IPUMS USA

Topics: Labor Force and Occupational Structure, Land Use/Urban Organization, Poverty and Welfare

Countries: United States