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More on the Impact of Economic Freedom on the Black–White Income Gap

Author

Listed:
  • Gary A. Hoover
  • Ryan A. Compton
  • Daniel C. Giedeman

Abstract

Using household-level data from 1980 to 2010, we examine whether economic freedom, as measured by the Economic Freedom of North America Index, has similar effects on white household income as it does on black household income. Our findings suggest that the positive effect of economic freedom found in most studies affects black households less than white households. Further, using the Oaxaca decomposition, our results show that economic freedom is an important factor explaining the gap between black and white household incomes.

Suggested Citation

  • Gary A. Hoover & Ryan A. Compton & Daniel C. Giedeman, 2018. "More on the Impact of Economic Freedom on the Black–White Income Gap," Public Finance Review, , vol. 46(2), pages 205-223, March.
    • Handle: RePEc:sae:pubfin:v:46:y:2018:i:2:p:205-223
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    Cited by:

    1. John A. Bishop & Juan Gabriel Rodríguez & Lester A. Zeager, 2021. "Race and Earnings Mobility in the US," Journal of Economics, Race, and Policy, Springer, vol. 4(3), pages 166-182, September.
    2. Ryan Compton & Daniel Giedeman & Leslie Muller, 2018. "Racial Differentials in the Wealth Effects of the Financial Crisis and Great Recession," Journal of Economics, Race, and Policy, Springer, vol. 1(2), pages 126-141, September.

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