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Economic Freedom and Migration Flows between U.S. States

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  • Nathan J. Ashby

    (Department of Economics, West Virginia University)

Abstract

A modified gravity model is estimated using a cross section of data drawn from the U.S. Census Bureau survey of 2000 in order to analyze the impact of economic freedom on gross migration flows among the lower 48 states. Spatial econometric methods are utilized in order to capture spatial effects not detected by distance. In addition, the Economic Freedom of North America Index is decomposed to determine the individual impact of various policies. Results show that states with higher relative economic freedom experience greater migration inflow through its direct impact on income and employment growth. In aggregate, the findings indicate that individuals migrate toward states with relatively higher government consumption expenditures, relatively lower tax burdens, and states with more freedom with respect to labor decisions in the form of less restrictive minimum wages, less concentration of unions, and less dependence on public employment.

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Bibliographic Info

Article provided by Southern Economic Association in its journal Southern Economic Journal.

Volume (Year): 73 (2007)
Issue (Month): 3 (January)
Pages: 677–697

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Handle: RePEc:sej:ancoec:v:73:3:y:2007:p:677-697

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Web page: http://www.southerneconomic.org/
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Cited by:
  1. Richard J. Cebula & J.R. Clark, 2011. "Migration, Economic Freedom, and Personal Freedom: An Empirical Analysis," Journal of Private Enterprise, The Association of Private Enterprise Education, vol. 27(Fall 2011), pages 43-62.
  2. Jerzy Michalek & Nana Zarnekow, 2012. "Application of the Rural Development Index to Analysis of Rural Regions in Poland and Slovakia," Social Indicators Research, Springer, vol. 105(1), pages 1-37, January.
  3. Miriam Henseler & Joachim Plesch, 2009. "How Can Scholarship Institutions Foster the Return of Foreign Students?," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), Justus-Liebig University Giessen, Department of Statistics and Economics, vol. 229(4), pages 382-409, August.
  4. Richard J. Cebula, 2008. "Small Firm Size and Health Insurance: A Private Enterprise Perspective," Journal of Private Enterprise, The Association of Private Enterprise Education, vol. 24(Fall 2008), pages 51-77.
  5. Kha Yen Prentice & Laszlo Konya & David Prentice, 2013. "Was the African American great migration delayed by outlawing emigrant agents?," CEH Discussion Papers 018, Centre for Economic History, Research School of Economics, Australian National University.
  6. Daniel B. Klein, 2013. "The Ideological Migration of the Economics Laureates: Introduction and Overview," Econ Journal Watch, Econ Journal Watch, vol. 10(3), pages 218-239, September.
  7. Nathan J. Ashby & Russell S. Sobel, 2006. "Income Inequality and Economic Freedom in the U.S. States," Working Papers 06-08 Classification-, Department of Economics, West Virginia University.
  8. Libman, Alexander & Herrmann-Pillath, Carsten & Yadav, Gaurav, 2013. "Are human rights and economic well-being substitutes? The evidence from migration patterns across the Indian states," European Journal of Political Economy, Elsevier, vol. 31(C), pages 139-164.
  9. Watkins, Tate & Yandle, Bruce, 2010. "Can Freedom and Knowledge Economy Indexes Explain Go-Getter Migration Patterns?," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 40(2).
  10. Samuel Jones & Michael Stroup, 2013. "Economic freedom and the mispricing of single-state municipal bond closed-end funds," Journal of Economics and Finance, Springer, vol. 37(2), pages 173-187, April.
  11. Cebula, Richard & Bopp, Anthony, 2007. "The Small Firms Hypothesis and the Percent of U.S. Society without Health Insurance: An Investigation Using Alternative Means Tests," MPRA Paper 56722, University Library of Munich, Germany.
  12. Monastiriotis, Vassilis & Kaplanis, Ioannis, 2011. "Flexible employment and cross- regional adjustment," Working Papers 2072/179671, Universitat Rovira i Virgili, Department of Economics.
  13. Joshua Hall & David Yu, 2012. "Ranking the Economic Freedom of North America using dominetrics," Economics Bulletin, AccessEcon, vol. 32(3), pages 1949-1961.
  14. Apergis, Nicholas & Dincer, Oguzhan C. & Payne, James E., 2012. "Live free or bribe: On the causal dynamics between economic freedom and corruption in U.S. states," European Journal of Political Economy, Elsevier, vol. 28(2), pages 215-226.
  15. Compton, Ryan A. & Giedeman, Daniel C. & Hoover, Gary A., 2011. "Panel evidence on economic freedom and growth in the United States," European Journal of Political Economy, Elsevier, vol. 27(3), pages 423-435, September.

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