State taxation of nonresident income and the location of work by David R. Agrawal and Kenneth Tester
By: Agrawal, David R
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Contributor(s): Tester, Kenneth.
Material type: 
ArticleSubject(s): IMPUESTO SOBRE LA RENTA DE NO RESIDENTES | CAPACIDAD FISCAL | INGRESOS FISCALES | MIGRACIONES INTERIORES | MOVILIDAD LABORAL | INCENTIVOS FISCALES | ESTADOS UNIDOS
In:
American Economic Journal : Economic Policy v. 16, n. 1, February 2024, p. 447-481Summary: Prior studies show that taxes matter for the residential locations of high-income earners. But states raise a significant share of revenue from nonresidents. Using variation in state tax rates, we provide causal evidence on the effect of the net-of-tax rate on the location of labor supply for professional golfers. State taxes induce high-income earners to shift employment to low-tax states without a residence change. The elasticity of working in a state is 0.34 and, consistent with the superstar phenomenon, increases with earnings. Our results suggest a novel margin of mobility responses for top earners: the spatial relocation of labor supply by nonresidents.
| Item type | Current location | Home library | Call number | Status | Date due | Barcode |
|---|---|---|---|---|---|---|
| Artículos | IEF | IEF | OP 2135/2024/1-5 (Browse shelf) | Available | OP 2135/2024/1-5 |
Resumen.
Bibliografía.
Prior studies show that taxes matter for the residential locations of high-income earners. But states raise a significant share of revenue from nonresidents. Using variation in state tax rates, we provide causal evidence on the effect of the net-of-tax rate on the location of labor supply for professional golfers. State taxes induce high-income earners to shift employment to low-tax states without a residence change. The elasticity of working in a state is 0.34 and, consistent with the superstar phenomenon, increases with earnings. Our results suggest a novel margin of mobility responses for top earners: the spatial relocation of labor supply by nonresidents.
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