For many years, Germany has been facing an increasing skills shortage in key occupations and has sought to attract a growing number of highly-skilled immigrants. In striving for this goal, Germany is competing not only with other countries with similar skills⎼demands but also with more traditional immigrant-sending countries. Some of these try to counterbalance the outflow of highly⎼skilled nationals by introducing large tax discounts for emigrants who eventually return. One example is the Italian returnees’ tax scheme “Legge Controesodo” (2010), which attracted back a sizeable proportion of highly-skilled young Italians who had been working in Germany.
The full-text can be found in the Online-Magazine IAB-Forum: Easy come, easy go: Return migration increases with tax incentives in the home country
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