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Economic freedom, the minimum wage, and food insecurity

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  • Dean Stansel
  • Fengyu Wu

Abstract

Economic freedom, a measure of the degree of freedom from government intervention in the economy, has been found to be associated with many positive economic outcomes, such as lower unemployment rates, and higher growth of income, employment, and population. One area that remains unexplored is the relationship with food insecurity. Areas with more government intervention may be expected to have higher food insecurity because those interventions can create greater impediments to people's ability to prosper economically. One specific example of that is the minimum wage, which may make it harder for inexperienced low‐skilled workers to obtain employment. We provide the first state‐level examination of the relationship between food insecurity and economic freedom and find higher values of economic freedom (lower levels of intervention) are associated with lower food insecurity. We also examine one specific component of that economic freedom measure, the minimum wage, and find some limited evidence that higher minimum wages are associated with higher food insecurity.

Suggested Citation

  • Dean Stansel & Fengyu Wu, 2024. "Economic freedom, the minimum wage, and food insecurity," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 46(3), pages 1127-1150, September.
    • Handle: RePEc:wly:apecpp:v:46:y:2024:i:3:p:1127-1150
    DOI: 10.1002/aepp.13438
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    References listed on IDEAS

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    1. David Neumark, 2018. "Employment effects of minimum wages," IZA World of Labor, Institute of Labor Economics (IZA), pages 1-6, December.
    2. David Neumark & Peter Shirley, 2022. "Myth or measurement: What does the new minimum wage research say about minimum wages and job loss in the United States?," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 61(4), pages 384-417, October.
    3. Daniel Aaronson & Eric French & James MacDonald, 2008. "The Minimum Wage, Restaurant Prices, and Labor Market Structure," Journal of Human Resources, University of Wisconsin Press, vol. 43(3), pages 688-720.
    4. Travis A. Smith & Christian A. Gregory, 2023. "Food Insecurity in the United States: Measurement, Economic Modeling, and Food Assistance Effectiveness," Annual Review of Resource Economics, Annual Reviews, vol. 15(1), pages 279-303, October.
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