Externalities from International Labor Migration: Efficacy of a Brain Drain Tax in the Euro-Mediterranean Region
نویسنده
چکیده
This paper uses a two-region, two-period overlapping generations model with international labor mobility to examine the efficacy of using tax policy to internalize the externalities created by international labor migration. While a brain drain tax has a substantial limiting effect on labor migration and a small negative effect on per worker growth, it is found to be a viable solution to the negative externality problem. It is also found that the brain-drain tax can raise substantial tax revenue for the SMCs which could be used to enhance human capital in the region. JEL Classification: E62, F22, H23, H24, H41
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