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The Impact of Economic Freedom and Personal Freedom on Net In-Migration in the U.S.: A State-Level Empirical Analysis, 2000 to 2010

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Abstract

Arguably, private enterprise flourishes under conditions of increased freedom. However, increases in economic freedom can sometimes impose costs on others (negative externalities and monopoly power being prominent examples). Nevertheless, on balance, it is typically expected that the greater the degree of economic freedom, the more successfully and efficiently markets perform and the greater the prosperity created through private enterprise. These net outcomes from greater freedom accelerate economic growth and development, which in turn creates opportunities for yet further success. From a different perspective, it can be argued that greater personal freedom promotes higher levels of utility for consumers in non-economic ways. Accordingly, the present study empirically investigates whether the prospects of greater economic freedom and/or greater personal freedom in any given state vis-à-vis other states act(s) to induce a greater net influx of migrants. This empirical study of internal U.S. migration over the study period from 2000 to 2010 finds clear evidence that migrants prefer to move to those states with greater economic freedom on the one hand and greater personal freedom on the other hand.

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Notes

  1. The reader may be interested in the fact that the actual high and low for the ECONFREEj variable are 0.405 and −0.589, respectively, whereas the actual high and low for the PERSFREEj variable are + 0.272 and −0.294, respectively.

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Authors and Affiliations

  1. Wells Fargo Endowed Chair in Finance, Jacksonville University, 2800 University Blvd. N., Jacksonville, FL, 32211, USA

    Richard J. Cebula

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  1. Richard J. Cebula
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Correspondence to Richard J. Cebula.

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Cebula, R.J. The Impact of Economic Freedom and Personal Freedom on Net In-Migration in the U.S.: A State-Level Empirical Analysis, 2000 to 2010. J Labor Res 35, 88–103 (2014). https://doi.org/10.1007/s12122-014-9175-7

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