Cookies?
Library Header Image
LSE Research Online LSE Library Services

But Switzerland's boring': tax migration and the pull of place-specific cultural capital

Friedman, Sam ORCID: 0000-0003-0629-1761, Gronwald, Victoria, Summers, Andrew ORCID: 0000-0002-4978-7743 and Taylor, Emma (2025) But Switzerland's boring': tax migration and the pull of place-specific cultural capital. Socio-Economic Review. ISSN 1475-1461

[img] Text (mwaf002) - Published Version
Available under License Creative Commons Attribution.

Download (762kB)
Identification Number: 10.1093/ser/mwaf002

Abstract

Many countries are concerned about the migration of top taxpayers. Yet we know little about how economic elites weigh the taxes they pay when deciding where to live. Existing evidence on tax flight is either quantitative or comes from wealthy individuals issuing warnings in the media. Drawing on in-depth interviews with thirty-five individuals in the top 1 per cent of the wealth distribution in the UK, we find a striking stigma attached to tax migration. Participants disparaged those who move for tax purposes and several characterized low-tax destinations as boring and culturally barren. Yet the most important factor restraining tax migration was the attachment to London as a place to work and live, particularly its unparalleled highbrow cultural infrastructure. These findings demonstrate that wealthy individuals often choose to prioritize investments in place-specific cultural capital above the relatively small gains in economic capital associated with tax migration.

Item Type: Article
Additional Information: © 2025 The Authors
Divisions: Sociology
Law
Subjects: H Social Sciences > HM Sociology
H Social Sciences > HB Economic Theory
H Social Sciences > HJ Public Finance
JEL classification: F - International Economics > F2 - International Factor Movements and International Business > F22 - International Migration
H - Public Economics > H2 - Taxation, Subsidies, and Revenue > H21 - Efficiency; Optimal Taxation
H - Public Economics > H2 - Taxation, Subsidies, and Revenue > H24 - Personal Income and Other Nonbusiness Taxes and Subsidies
J - Labor and Demographic Economics > J6 - Mobility, Unemployment, and Vacancies > J61 - Geographic Labor Mobility; Immigrant Workers
K - Law and Economics > K3 - Other Substantive Areas of Law > K34 - Tax Law
Z - Other Special Topics > Z1 - Cultural Economics; Economic Sociology; Economic Anthropology > Z13 - Social Norms and Social Capital; Social Networks
Date Deposited: 13 Jan 2025 15:18
Last Modified: 01 Mar 2025 04:32
URI: http://eprints.lse.ac.uk/id/eprint/126860

Actions (login required)

View Item View Item

Downloads

Downloads per month over past year

Loading...

View more statistics