%0 Report
        %A Bassetto, Jacopo
%A Ippedico, Giuseppe
        %T Tax Incentives and Return Migration
        %D 2024
        %8 2024 Aug
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 17224
        %U https://www.iza.org/index.php/publications/dp17224
        %X Brain drain is a key policy concern for many countries. In this paper we study whether tax incentives are an effective policy to attract high-skilled expatriates back to their home country, exploiting a generous income tax break for Italian returnees. Using administrative data and a Triple Differences design, we find that eligible individuals are 27% more likely to return to Italy. Additionally, we uncover significant effects throughout the wage distribution, revealing that tax-induced migration is a broad phenomenon beyond top earners. A cost-benefit analysis shows that the tax scheme can pay for itself by targeting young high-skilled individuals.
        %K brain drain
%K tax incentives
%K return migration
%K personal income tax