Personal income taxation under mobility, exogenous and endogenous welfare weights, and asymmetric information

This paper analyses how governments should tax labour income accruing to a group of highly skilled and geographically mobile individuals who divide th eir time or career between several jurisdictions. The analysis differs from previous models on migration and taxation by addressing optimal regulation when agents work for several principals. Optimal taxation is developed for social welfare functions with exogenous and endogenous welfare weights. Ma rginal income taxes are applied for screening purposes, and the rates are l ower with endogenous than with exogenous welfare weights. JEL classificatio n: D82, L51, H21.