The Effect of State Taxes on the Geographical Location of Top Earners: Evidence from Star Scientists

• 成果类型: Article
• 署名作者: Moretti, Enrico; Wilson, Daniel J.
• 署名单位: University of California System; University of California Berkeley; Federal Reserve System - USA; Federal Reserve Bank - San Francisco
• 刊物名称: AMERICAN ECONOMIC REVIEW
• ISSN/ISSBN: 0002-8282
• DOI: 10.1257/aer.20150508
• 发表日期: 2017
• 页码: 1858-1903
• 关键词: MIGRATION; taxation; incentives; inference; models; jobs

摘要

We quantify how sensitive is migration by star scientists to changes in personal and business tax differentials across states. We uncover large, stable, and precisely estimated effects of personal and corporate taxes on star scientists' migration patterns. The long-run elasticity of mobility relative to taxes is 1.8 for personal income taxes, 1.9 for state corporate income tax, and -1.7 for the investment tax credit. While there are many other factors that drive when innovative individuals and innovative companies decide to locate, there are enough firms and workers on the margin that state taxes matter.