Kevin Milligan

I develop and implement a methodology for cohort life expectancy using a panel of administrative tax data on a large sample born between 1930 and 1964. Over these 35 years, cohort life expectancy after age 54 grew by five years for women and seven years for men. The income–longevity gradient for the top 5% vs. bottom 5% of incomes is nine years of post‐54 life for men and seven years for women. The life expectancy improvements arise across the income distribution in Canada, unlike the United States. Large differences across neighbourhoods emerge that cannot be explained by income differences alone.

This article studies the influence of cultural norms on economic outcomes. We combine detailed information on second-generation female immigrants with historical data from their ancestral source countries to see how the cultural endowment affects current decisions on work and fertility. We show that results using the standard approach are somewhat sensitive to context and specification. We then extend to reveal an education gradient for cultural assimilation: lower-educated women exhibit a strong influence of cultural variables while higher-educated women show no influence at all. We gather and present evidence on several potential mechanisms for the education gradient.

We develop a theory of cross-border income shifting in response to subnational personal taxation in a federation and examine its implications for the excess burden of personal taxes. We show how a properly-chosen federal tax rate can offset the fiscal externality between states and facilitate decentralization, even in a heterogeneous federation where unitary taxation is suboptimal. Optimal taxes depend on the elasticities of national tax avoidance and of cross-state tax base shifting. We estimate these elasticities around a tax decentralization reform in Canada, finding both to be empirically relevant. We discuss the implications for optimal federalism.

We address health capacity to work among older Canadian workers with a specific focus on differences by gender and region. We find that in 2012 men would have needed to work more than five additional years between ages 55 and 69 to keep pace with how much men worked in 1976, holding health capacity constant. For working women, the comparable result is only two years more work. Most of these gaps arose before the mid-1990s; since then, employment advances have offset mortality improvements. Regionally, more than half the Ontario–Atlantic employment difference among older men is rooted in health differences.