The incidence of income taxes on high earners in Canada

This article explores the “brain drain” explanation for the concentration of incomes in Canada during the past 30 years, namely, that high‐skilled Canadians make use of high salaries on offer in the United States to extract higher salaries at home. If this is the case, then for a given level of US salaries, the threat to accept outside offers should be more credible when the Canadian dollar is depreciating against the US dollar, and weaker when...