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Economic freedom, homeownership, and state labor market conditions

Lauren R. Heller (Department of Economics, Berry College, Mount Berry, GA, US)
E. Frank Stephenson (Department of Economics, Berry College, Mount Berry, GA, US)

Journal of Entrepreneurship and Public Policy

ISSN: 2045-2101

Article publication date: 17 August 2015

349

Abstract

Purpose

The purpose of this paper is to reconcile research finding that labor market outcomes are related to economic freedom for entrepreneurs and separate research finding that higher homeownership rates are associated with more unemployment.

Design/methodology/approach

Using panel data covering the 50 states over 1981-2009, this paper analyzes the relationship between labor market conditions, economic freedom, and homeownership rates.

Findings

The results indicate that economic freedom is associated with favorable labor market conditions but that the relationship between homeownership and poor labor market outcomes is small and insignificant in most specifications once economic freedom is accounted for.

Originality/value

This paper is the first paper to examine the relationship between labor market outcomes and both homeownership and economic freedom. The results suggest that the economic environment for entrepreneurs is more important than any rigidities created by homeownership.

Keywords

Citation

Heller, L.R. and Stephenson, E.F. (2015), "Economic freedom, homeownership, and state labor market conditions", Journal of Entrepreneurship and Public Policy, Vol. 4 No. 2, pp. 142-151. https://doi.org/10.1108/JEPP-06-2014-0026

Publisher

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Emerald Group Publishing Limited

Copyright © 2015, Emerald Group Publishing Limited

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