Recent evidence on the effect of real earnings on net migration
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TL;DR
It is shown that nominal earnings are not a good proxy for real earnings and gross real earnings performed better than net real earnings, suggesting a possibility of 'tax illusion' on the part of the migrants.
Abstract
"This paper examines the effect of gross nominal earnings, gross real earnings, and net real earnings on net migration in a simultaneous-equation model of net migration and employment growth. Using US SMSA data for 1970-75, the study shows that nominal earnings are not a good proxy for real earnings. In addition, gross real earnings performed better than net real earnings, suggesting a possibility of 'tax illusion' on the part of the migrants. Besides, employment growth had a significant positive effect on net migration, whereas net migration affected employment growth positively but less significantly." (summary in FRE, GER)