Easy come, easy go: Return migration increases with tax incentives in the home country

Abstract

"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." (Author's abstract, IAB-Doku) ((en))

Cite article

Bassetto, J. & Ippedico, G. (2023): Easy come, easy go: Return migration increases with tax incentives in the home country. In: IAB-Forum No. 28.11.2023. DOI:10.48720/IAB.FOO.20231128.01