TY  - RPRT
        AU  - Bassetto, Jacopo
AU  - Ippedico, Giuseppe
        TI  - Tax Incentives and Return Migration
        PY  - 2024/Aug/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 17224
        UR  - https://www.iza.org/index.php/publications/dp17224
        AB  - 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.
        KW  - brain drain
KW  - tax incentives
KW  - return migration
KW  - personal income tax
        ER  -