E.U. VERSUS O.E.C.D. - MIGRATION FLOW UNDER THE LABOUR TAXATION IMPACT

Abstract

In a world governed by the freedom of movement, production factors – capital, labour and consumption – can “run” from on territory to another bringing along positive and negative effects, just as well. Labour, the second in line of “run away” production factors, has a great impact upon a state economy generating sustainable growth or increasing budgetary revenues This paper presents for a period of 7 years, for both European (UE-28) and international (OECD) level, the migration flow under the labour taxation impact (it is well known that more than 75% of the migration flow is work force related). The authors found that even if both areas are attracting labour force the reasons for doing that are completely different – while for the OECD member states and non-EU member states there will always be the “occident fascination” in the Europeans are “voting with their feet”.

Keywords

• migration, labour, taxation, implicit tax rate