The impact of labor market freedom on state-level in-migration in the US. A dynamic panel data analysis, 2008-2016
| Published date | 24 October 2019 |
| Pages | 40-52 |
| Date | 24 October 2019 |
| DOI | https://doi.org/10.1108/JEPP-07-2019-0062 |
| Author | Richard J. Cebula,Christopher M. Duquette,G. Jason Jolley |
| Subject Matter | Strategy,Entrepreneurship,Business climate/policy |
The impact of labor market
freedom on state-level
in-migration in the US
A dynamic panel data analysis, 2008-2016
Richard J. Cebula
Davis College of Business, Jacksonville University, Jacksonville, Florida, USA
Christopher M. Duquette
The MITRE Corporation, Washington, District of Columbia, USA, and
G. Jason Jolley
Ohio University, Athens, Ohio, USA
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 economicfreedom 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
Paper type Research paper
1. Introduction
Economic freedom and its influence on economies, societies and governments have received
considerable attention in the policy world and academic community over the past three
decades. In 2019, The Heritage Foundation released its 25th edition of The Index of
Economic Freedom, which uses indices to define and measure economic freedom based on
“rule of law, limited government, regulatory efficiency, and open markets”(Miller et al.,
2019, p. 1). In 2018, the Fraser Institute published its 14th edition of Economic Freedom of
North America 2018, which also uses indices to measure economic freedom based on
government spending, taxes and labor market freedom (Stansel et al., 2018). Scholars have
used indices, such as those developed by the Heritage Foundation and the Fraser Institute,
to explore the impact of economic freedom in more detail. For example, prior studies have
Journal of Entrepreneurship and
Public Policy
Vol. 9 No. 1, 2020
pp. 40-52
© Emerald PublishingLimited
2045-2101
DOI 10.1108/JEPP-07-2019-0062
Received 31 July 2019
Revised 20 September 2019
Accepted 20 September 2019
The current issue and full text archive of this journal is available on Emerald Insight at:
www.emeraldinsight.com/2045-2101.htm
JEL Classification —H24, J61, J68, P14, R23
The author’s affiliation with The MITRE Corporation is provided for information purposes only and
is not intended to convey or imply MITRE’s concurrence with, or support for, the positions, opinions, or
viewpoints expressed by the authors. The authors are indebted to Zachary Ehrlich for data assembly.
40
JEPP
9,1
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