This paper uses panel data for the U.S. states and Canadian provinces over the period 1980-2010 to examine how subnational economic freedom effects income inequality through the former's impact on economic performance. Using a 2SLS fixed effects framework, the results point towards an...

While economic freedom has been linked to positive outcomes such as economic growth and well-being, studies examining its relationship with income inequality have produced inconsistent results. The chapter reviews empirical research published in peer-reviewed journals indexed in the Social...