Global Migration of Talent and Tax Incentives : Evidence from Malaysia's Returning Expert Program

Del Carpio, Ximena V. ; Ozden, Caglar ; Testaverde, Mauro ; Wagner, Mathis

World Bank, Washington, DC

关键词: brain drain;    migration;    migration policy;    tax incentives;    brain circulation;   

DOI  :  10.1596/1813-9450-7875
RP-ID  :  WPS7875

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

This paper presents the first evidenceon the efficacy of a major program designed to encourage thereturn migration of high-skilled individuals. The MalaysianReturning Expert Program targets high-skilled Malaysiansabroad and provides them with tax incentives to return. Atseveral eligibility thresholds, the probability ofacceptance into the program increases discontinuously. Usingadministrative data on applicants, the analysis is able toidentify the impact of acceptance to the Returning ExpertProgram on the probability of returning to Malaysia. Thefuzzy regression discontinuity design estimates suggest thatprogram approval increases the return probability by 40percent for applicants with a preexisting job offer inMalaysia. There is no significant treatment effect for thosewho apply without a job offer. The estimated migrationelasticity with respect to the net-of-tax rate, averagedacross all applicants, is 1.2. Fiscal cost-benefit analysisof the Returning Expert Program finds a modest net fiscaleffect of the program, between minus $6,900 and plus $4,200per applicant, suggesting that the program roughly pays for itself.