The Taxation of Mobile High-Skilled Workers

This chapter looks at the international dimension to the taxation of employment income, particularly in relation to high-skilled individuals. Globalisation and the growth of MNEs have, empirical evidence suggests, increased the extent to which corporate income tax rates and regimes affect the location of investment (see, for example, Altshuler et al., 2001 OECD, 2007c). But have such trends had an impact on labour markets and is a global market for “talent” developing? The attractions of the US market for skilled (English-speaking) workers has, for instance, been suggested as a possible explanation for trends in top incomes in English-speaking countries showing similar trends to the United States (albeit to a less marked degree).