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The impact of labor market freedom on state-level in-migration in the US

Author

Listed:
  • Richard J. Cebula
  • Christopher M. Duquette
  • G. Jason Jolley
Abstract
Purpose - Influences on the pattern of internal migration in the US, including economic factors, quality-of-life factors and public policy variables have been extensively studied by regional scientists since the early 1970s. Interestingly, a small number of studies also address the effects of economic freedom on migration. The purpose of this paper is to add to the migration literature by examining the impact of labor market freedom on both gross and net state in-migration over the study period 2008–2016. Design/methodology/approach - This study uses dynamic panel data analysis to investigate the impact of labor market freedom on both gross and net state in-migration over the study period 2008–2016. Findings - The panel generalized method of moments analysis reveals that overall labor market freedom exercised a positive and statistically significant impact on both measures of state in-migration over the study period. The study finds a 1 percentage point increase in the overall labor market freedom index results in a 2.8 percent increase in the gross in-migration rate. Research limitations/implications - The findings imply states interested in attracting migrants and stimulating economic growth should pursue policies consistent with increased labor freedom. Originality/value - The emphasis in the present study is on the impact of labor market freedom on state-level in-migration patterns, both gross and net, over a contemporary time period that includes both the Great Recession and subsequent recovering.

Suggested Citation

  • Richard J. Cebula & Christopher M. Duquette & G. Jason Jolley, 2019. "The impact of labor market freedom on state-level in-migration in the US," Journal of Entrepreneurship and Public Policy, Emerald Group Publishing Limited, vol. 9(1), pages 40-52, October.
    • Handle: RePEc:eme:jepppp:jepp-07-2019-0062
    DOI: 10.1108/JEPP-07-2019-0062
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    More about this item

    Keywords

    Literature; Recession; Data analysis; Labour market freedom; Net state in-migration; Dynamic panel data estimation; H24; J61; J68; P14; R23;
    All these keywords.

    JEL classification:

    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy
    • P14 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Property Rights
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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