A Longitudinal Analysis of the Impact of State Economic Freedom on Individual Wages

Jeffrey Yankow

Journal of Regional Analysis and Policy, 2014, vol. 44, issue 01

Abstract: Matching panel data drawn from the National Longitudinal Survey of Youth 1979 to the state-level index of economic freedom published in Economic Freedom of North America 2010, this study establishes an empirical relationship between wages at the individual level and the degree of state economic freedom. In OLS models, a one standard deviation improvement in the state economic freedom score is found to increase wages by 2.5 percent. Models that con-trol for both person-specific and state-level fixed effects reveal a wage increase of more than 8 percent. Significant variation in wage gains is found across the different areas used to con-struct the economic freedom measure as well as across broad worker characteristics like race and schooling level.

Keywords: Community/Rural/Urban Development; Institutional and Behavioral Economics; Labor and Human Capital (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://ageconsearch.umn.edu/record/243964/files/v44_n1_a5_yankow.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:jrapmc:243964

DOI: 10.22004/ag.econ.243964

Access Statistics for this article

More articles in Journal of Regional Analysis and Policy from Mid-Continent Regional Science Association Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().