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Economic freedom and migration: A metro area‐level analysis

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  • Imran Arif
  • Adam Hoffer
  • Dean Stansel
  • Donald Lacombe

Abstract

We examine the determinants of intra‐U.S. population migration at the metropolitan area level (MSA), with an emphasis on the presence of policies that are consistent with economic freedom. We are the first to produce a multivariate regression analysis of migration and economic freedom at the local level. Combining a 1993–2014 unbalanced panel of MSA‐to‐MSA migration data from the Internal Revenue Service with a new economic freedom index for U.S. metropolitan areas, we find that a 10% increase in economic freedom of a destination MSA, relative to the economic freedom of an origin MSA, was associated with a 27.4% increase in net migration from the origin MSA to the destination MSA. If we use mean net migration flows as a benchmark, we would expect a 10% increase in relative economic freedom to increase net migration to the destination MSA by 22 workers per year from each other MSA.

Suggested Citation

  • Imran Arif & Adam Hoffer & Dean Stansel & Donald Lacombe, 2020. "Economic freedom and migration: A metro area‐level analysis," Southern Economic Journal, John Wiley & Sons, vol. 87(1), pages 170-190, July.
    • Handle: RePEc:wly:soecon:v:87:y:2020:i:1:p:170-190
    DOI: 10.1002/soej.12437
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    6. Witham, Adam & Leite, Brian, 2023. "Business is Hopping: The Effects of Deregulation on Southern Craft Beer," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 53(1), January.
    7. Callais, Justin, 2022. "Free to Grow? A Matching Methods Analysis of Economic Freedom in the United States," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 52(1), December.

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