Regulation and Income Mobility

Geloso Vincent () and Sharma Pradyot ()
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Geloso Vincent: Department of Economics, 3298 George Mason University , Fairfax, USA
Sharma Pradyot: Department of Economics, 3298 George Mason University , Fairfax, USA

The Economists' Voice, 2025, vol. 22, issue 1, 143-149

Abstract: Much of the discussion on income mobility is focused on mitigating inequality through taxation and redistribution without considering the institutional and regulatory landscape that contributes to a decrease in income mobility. We present evidence on the role of economic freedom and deregulation in increasing income mobility and argue that policies promoting the two offer a more potent solution towards improving the economic status of the poor. Economic freedom can mitigate the impact of technological shocks on individuals in the lower end of the income distribution, an issue that has significant policy implications in light of the changing technological landscape.

Keywords: economic freedom; intergenerational mobility; deregulation (search for similar items in EconPapers)
JEL-codes: J44 J62 L51 (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1515/ev-2025-0007

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