Economic Behavior, Economic Freedom, and Entrepreneurship
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Economic Behavior, Economic Freedom, and Entrepreneurship

Edited by Richard J. Cebula, Joshua Hall, Franklin G. Mixon Jr and James E. Payne

Expert editors add to an important field of research, the economics of entrepreneurship, and explore how institutions influence entrepreneurial behavior. This book provides comprehensive and contemporary insights into the interaction between economic behavior of firms and households, economic freedom, and entrepreneurship, and how it generates an environment with greater opportunities for growth and development for individuals, households, and private-sector firms.
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Chapter 13: Preliminary findings on the impact of labor market freedom on the male labor force participation rate

Gigi M. Alexander and Richard J. Cebula

Abstract

Using data on U.S. states, this empirical chapter looks at the impact of labor market freedom on the male labor force participation rate. Using data from the Economic Freedom of North America index in 2010, we find preliminary empirical support for the hypothesis that greater labor market freedom elevates the male labor force participation rate. A one unit increase in labor market freedom is estimated to lead to a 2.51 percent increase in the male labor market participation rate in that state. In addition, we find that greater annual earnings for men by state create an incentive to enter the labor force.

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