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January/February 2011, 
Vol. 93, No. 1
Posted 2011-01-03

Economic Freedom and Employment Growth in U.S. States

by Thomas A. Garrett and Russell M. Rhine

The authors extend earlier models of economic growth and development by exploring the effect
of economic freedom on U.S. state employment growth. They find that states with greater economic
freedom—defined as the protection of private property and private markets operating with minimal
government interference—experienced greater rates of employment growth.