Economic Freedom Promotes Upward Income Mobility

Economic freedom is positively tied with numerous positive outcomes ranging from faster economic growth (Hall and Lawson, 2014) to environmental progress (Barbier, 2019) and greater resilience in the face of economic crises (Geloso and Bologna Pavlik, 2020; Candela and Geloso, 2021). Recently, more attention has been devoted to the connection between economic freedom and income inequality and the findings are somewhat mixed as some studies show that economic freedom is associated with higher levels of inequality while others find the opposite (Berggren, 1999; Carter, 2007; Ashby and Sobel, 2008; Bennett and Vedder, 2013; Apergis, Dincer, and Payne, 2014; Strum and De Haan, 2015; Holcombe and Boudreaux, 2016; Bennett and Nikolaev, 2016, 2017; Apergis and Cooray, 2017; Bjørnskov, 2017).

This piece originally appeared in Fraser Institute 

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