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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)
G. Jason Jolley (Ohio University, Athens, Ohio, USA)

Journal of Entrepreneurship and Public Policy

ISSN: 2045-2101

Article publication date: 30 October 2019

Issue publication date: 18 February 2020

174

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

Acknowledgements

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.

Citation

Cebula, R.J., Duquette, C.M. and Jolley, G.J. (2020), "The impact of labor market freedom on state-level in-migration in the US: A dynamic panel data analysis, 2008-2016", Journal of Entrepreneurship and Public Policy, Vol. 9 No. 1, pp. 40-52. https://doi.org/10.1108/JEPP-07-2019-0062

Publisher

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Emerald Publishing Limited

Copyright © 2019, Emerald Publishing Limited

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