Firm-level Effects of Tax-Induced Immigration

Speaker: Giuseppe Ippedico

Affiliation: Nottingham University 

Abstract :

Several countries use preferential tax schemes to attract high-skilled workers from abroad. While these schemes are motivated by the positive spillover effects of tax- induced immigration on receiving countries, there is limited empirical evidence documenting these human capital externalities in the context of tax-induced immigration. In this project, we investigate the firm-level effects of tax-induced immigration in Italy, which offer preferential tax schemes for high-skilled immigrants and returnees since 2010. Using social security data and leveraging pre-existing variation in firms’ exposure to the policy, we estimate the effects of tax-induced immigration on productivity, wages, employment and other outcomes of firms and co-workers.