The Impact of Economic Freedom on the Black/White Income Gap

Gary Hoover, Ryan Compton and Daniel Giedeman

American Economic Review, 2015, vol. 105, issue 5, 587-92

Abstract: Using state-level data from 1980-2010 we examine whether economic freedom, as measured by the Economic Freedom of North America Index, has had any impact in increasing or decreasing the ratio of median income for black households to the median income of white households. To our knowledge, there has been no research on racial income disparities and the role that economic freedom might have in alleviating or exacerbating the problem. We find evidence that economic freedom is associated with an increase in the racial income gap.

JEL-codes: D72 E02 J15 J31 (search for similar items in EconPapers)
Date: 2015
Note: DOI: 10.1257/aer.p20151111
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Citations: View citations in EconPapers (9)

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