Economic Freedom and Labor Market Conditions: Evidence from the States
11 Pages Posted: 20 Nov 2013
Date Written: January 2014
Abstract
Using 1981–2009 data for the 50 states, this article examines the relationship between economic freedom and the unemployment rate, the labor force participation rate, and the employment‐population ratio. After controlling for a variety of state‐level characteristics, the results from most specifications indicate that economic freedom is associated with lower unemployment and with higher labor force participation and employment‐population ratios.
JEL Classification: J68, K31, O43
Suggested Citation: Suggested Citation
Heller, Lauren and Stephenson, E. Frank, Economic Freedom and Labor Market Conditions: Evidence from the States (January 2014). Contemporary Economic Policy, Vol. 32, Issue 1, pp. 56-66, 2014, Available at SSRN: https://ssrn.com/abstract=2357213 or http://dx.doi.org/10.1111/coep.12031
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