Upjohn Research
Not a member yet
3819 research outputs found
Sort by
The Employment and Wage Effects of Tax-Induced Migration
Several countries have preferential tax schemes to attract high-skilled workers from abroad. While these schemes are motivated by the positive productivity effects of tax-induced immigration on receiving countries, due to human capital externalities and agglomeration spillovers (Kerr et al. 2016), there is limited empirical evidence on these spillovers in the context of tax-induced immigration. Further, recent work suggests that high-skilled immigration may crowd-out native employment (Doran, Gelber, and Isen 2022). In this project, we plan to build on Bassetto and Ippedico (2023) and to investigate the effects of tax-induced return migration to Italy on receiving firms, by studying the effects of the 2010 preferential tax scheme, which reduced substantially income taxes on young high-skilled workers returning from abroad. By leveraging pre-existing variation in firms’ exposure to workers eligible for the policy – combined with the introduction of the tax scheme –, and using Italian Social Security data, we will estimate the effects of these high-skilled returnees on productivity, wages, employment and other firm-level and local-level outcomes
Franchise Owners Are Colluding to Suppress Minnesota Workers’ Wages: The Legislature Can Put a Stop to It
Improving the U.S. Workforce System by Transforming its Performance Measurement System into an Intelligent Information System
Behind the Numbers: Comparing College-Going Outcomes of Kalamazoo Public Schools to Those of Similar Urban School Districts in Michigan
School-Based Mental Health Services Can Increase Access to Care and Decrease Suicide Attempts
Scoring SOAR
This paper estimates the benefits and costs of the incentive package provided to the proposed Ford battery plant in Marshall, Michigan. This project, announced in February 2023, involves a state and local business incentive package whose undiscounted value is $1.7 billion, and which is awarded to a plant that will eventually create 2,500 permanent jobs. The incentive package is analyzed using the Bartik Benefit-Cost Model of Incentives. The model’s estimates suggest that the incentive package has economic benefits whose present value is over 1.8 times the project’s incentive costs. Most of these benefits are higher earnings per capita for Michigan residents, a product of the project’s job creation and its resulting effects in boosting employment rates, real wage rates, and earnings per capita. Further analyses find that the project’s positive net benefits are mainly due to the project’s extraordinarily high multiplier, its location in a moderately distressed county, and the project’s limited effects in reducing K–12 spending. The estimates from this case study suggest that generous incentive packages for megaprojects are more likely to pass a benefit-cost test if policymakers target high-multiplier industries in distressed counties, and avoid adverse effects on K–12 education