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Economic freedom and employment growth in U.S. states

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  • Thomas A. Garrett
  • Russell M. Rhine

Abstract

The authors extend earlier models of economic growth and development by exploring the effect of economic freedom on U.S. state employment growth. They find that states with greater economic freedom—defined as the protection of private property and private markets operating with minimal government interference—experienced greater rates of employment growth. In addition, they find that less-restrictive state and national government labor market policies have the greatest impact on employment growth in U.S. states. Beyond labor market policies, state employment growth is influenced by state and local government policies, but not the policies of all levels of government, including the national government. Their results suggest that policymakers concerned with employment should seriously consider the degree to which their own labor market policies and those of the national government may be limiting economic growth and development in their respective states.

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Bibliographic Info

Article provided by Federal Reserve Bank of St. Louis in its journal Review.

Volume (Year): (2011)
Issue (Month): Jan ()
Pages: 1-18

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Handle: RePEc:fip:fedlrv:y:2011:i:jan:p:1-18:n:v.93no.1

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Keywords: Economic development ; Employment;

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Citations

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Cited by:
  1. Anderson, John E., 2012. "State Tax Rankings: What Do They And Don’T They Tell Us?," National Tax Journal, National Tax Association, vol. 65(4), pages 985-1010, December.
  2. Jamie Bologna & Donald J. Lacombe & Andrew T. Young, 2014. "A Spatial Analysis of Incomes and Institutional Quality : Evidence from US Metropolitan Areas," Working Papers 14-11, Department of Economics, West Virginia University.
  3. Jed Kolko & David Neumark & Marisol Cuellar Mejia, 2011. "What Do Business Climate Indexes Teach Us About State Policy and Economic Growth?," NBER Working Papers 16968, National Bureau of Economic Research, Inc.
  4. Noel D., Johnson & William, Ruger & Jason, Sorens & Steven, Yamarik, 2012. "Corruption as a response to regulation," MPRA Paper 36873, University Library of Munich, Germany.

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