Does Economic Freedom Lead to Selective Migration By Education?

Abstract

Using a spatial Durbin model (SDM), we estimate the migratory response of those with various levels of education to state differences in economic freedom. We find that states with greater overall economic freedom attract those with a secondary education and, to a lesser extent, those with some college experience. States with greater government expenditures as a percent of Gross State Product witness a net in-migration of those with college experience and out-migration of those with only an elementary education. The opposite is true for transfers and subsidies. States with greater union density witness non-selective out-migration.