Working Paper Series,
Research Institute of Industrial Economics

Abstract: Relying on Forbes Magazine annual rankings for two decades, 1625 billionaires and their countries of birth and residence are identified, most of whom are self-made entrepreneurs. 13 percent of billionaires reside in a country other than that of their birth. Migration is linked to distance, to cultural ties and to the per capita income of the respective source and host country. Capital taxes have a statistically significant though economically modest effect. 80 percent of those who moved migrated from a lower per capita income to a higher per capita income country and 70 percent from a higher tax country to a lower tax country. Self-made billionaires are more likely to move to countries with larger market sizes. Overall surprisingly few billionaire entrepreneurs migrate. Previous research has found that self-employed tend to work in their home community at higher rates than employees. Entrepreneurship too appears to be local, with private equity be characterized by a home bias. One explanation may be the wide dispersion and local nature of information as emphasized by Hayek.

Keywords: Entrepreneurship; Migration; Taxes

JEL-codes: F22; H20; L26

Language: English

9 pages, First version: March 6, 2012. Revised: December 2, 2014.

Full text files

wp904.pdf  

Download statistics

Published as

Tino Sanandaji, (2014), 'The International Mobility of Billionaires', Small Business Economics, vol 42, no 2, pages 329-338

• Research Institute of Industrial Economics
• Ordering Working Papers
• Home page for this series

Questions (including download problems) about the papers in this series should be directed to Elisabeth Gustafsson ()
Report other problems with accessing this service to Sune Karlsson ().

RePEc:hhs:iuiwop:0904This page generated on 2024-09-13 22:15:49.