" 'Returning brains':  tax incentives, migration and scientific productivity" - Pier Paolo Creanza 

Abstract

This work in progress investigates whether common tax schemes aimed at inducing high-skill immigration produce positive productivity spillovers on native workers. While recent contributions have provided evidence that such policies induce the expected migration effects, little is known about broader benefits in terms of innovation or economic performance. To shed light on this question, this paper focuses on an Italian tax break targeting researchers and uses publication data to measure productivity. First, the data show a strong first-stage in terms of migration and positive selection of beneficiaries. Second, preliminary evidence suggests modest productivity spillovers, with the range of the estimates changing with different indetification strategies. More work is needed to reach a definitive conclusion.