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

Richard Cebula (), Christopher M. Duquette and G. Jason Jolley

Journal of Entrepreneurship and Public Policy, 2019, vol. 9, issue 1, 40-52

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.

Keywords: Literature; Recession; Data analysis; Labour market freedom; Net state in-migration; Dynamic panel data estimation; H24; J61; J68; P14; R23 (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:eme:jepppp:jepp-07-2019-0062

DOI: 10.1108/JEPP-07-2019-0062

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