21 April 2025
In a recently published paper in the American Economic Journal: Applied Economics, our colleagues Lisa Marie Timm and Paul Muller, together with Massimo Giuliodori, explore how a Dutch tax exemption scheme influenced international migration.
Using a 2012 reform that introduced an income threshold, they find a striking rise in migration among mid-level earners, suggesting that tax incentives don't just appeal to the highest incomes.
Their findings show that migration more than doubled just above the eligibility threshold, while wage effects remained modest.
Read more here: https://www.aeaweb.org/articles?id=10.1257/app.20230438&&from=f