American Economic Review
ISSN 0002-8282 (Print) | ISSN 1944-7981 (Online)
Taxation and International Migration of Superstars: Evidence from the European Football Market
American Economic Review
vol. 103,
no. 5, August 2013
(pp. 1892–1924)
Abstract
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.Citation
Kleven, Henrik Jacobsen, Camille Landais, and Emmanuel Saez. 2013. "Taxation and International Migration of Superstars: Evidence from the European Football Market." American Economic Review, 103 (5): 1892–1924. DOI: 10.1257/aer.103.5.1892Additional Materials
JEL Classification
- F22 International Migration
- H24 Personal Income and Other Nonbusiness Taxes and Subsidies; includes inheritance and gift taxes
- H31 Fiscal Policies and Behavior of Economic Agents: Household
- J44 Professional Labor Markets; Occupational Licensing
- J61 Geographic Labor Mobility; Immigrant Workers
- L83 Sports; Gambling; Recreation; Tourism