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Tax Avoidance

Author

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  • Nolan Kopkin

Abstract

By using a data set of professional basketball players' free agent contracts from the National Basketball Association (NBA) between the 2001-2002 and 2007-2008 seasons, which has rich data on worker productivity, the author is able to identify the effect that changes in income tax rates have on the labor migration decisions of NBA free agents. After controlling for other observable characteristics of teams, cities, and states, the author finds that an increase in the marginal income tax rate faced by NBA basketball players that play for a given team leads to a decrease in the average skill of the NBA free agents that migrate to that team.

Suggested Citation

  • Nolan Kopkin, 2012. "Tax Avoidance," Journal of Sports Economics, , vol. 13(6), pages 571-602, December.
    • Handle: RePEc:sae:jospec:v:13:y:2012:i:6:p:571-602
    DOI: 10.1177/1527002511412194
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    References listed on IDEAS

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    1. Figlio, David N & O'Sullivan, Arthur, 2001. "The Local Response to Tax Limitation Measures: Do Local Governments Manipulate Voters to Increase Revenues?," Journal of Law and Economics, University of Chicago Press, vol. 44(1), pages 233-257, April.
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    3. Peter Egger & Doina Maria Radulescu, 2009. "The Influence of Labour Taxes on the Migration of Skilled Workers," The World Economy, Wiley Blackwell, vol. 32(9), pages 1365-1379, September.
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    6. Kirchgassner, Gebhard & Pommerehne, Werner W., 1996. "Tax harmonization and tax competition in the European Union: Lessons from Switzerland," Journal of Public Economics, Elsevier, vol. 60(3), pages 351-371, June.
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    Cited by:

    1. Harald Oberhofer & Marian Schwinner, 2017. "Do Individual Salaries Depend On the Performance of the Peers? Prototype Heuristic and Wage Bargaining in the NBA," WIFO Working Papers 534, WIFO.
    2. James Alm & William H. Kaempfer & Edward Batte Sennoga, 2012. "Baseball Salaries and Income Taxes," Journal of Sports Economics, , vol. 13(6), pages 619-634, December.
    3. Anna Bykova & Dennis Coates, 2022. "Professional team sporting success: do economic and personal freedom provide competitive advantages?," Economics of Governance, Springer, vol. 23(3), pages 323-358, December.

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