Document Type

Working Paper

Publication Date

2014

College/Unit

Chambers College of Business and Economics

Document Number

14-34

Department/Program/Center

Economics

Abstract

This paper provides an exploratory analysis into factors contributing to differences across states in recidivism rates. We provide the first such examination that incorporates differences in economic freedom. Using a panel data set from 1998- 2010, we find that higher levels of economic freedom within a state are associated with lower recidivism rates within that state. A one percent increase in economic freedom is associated with a 0.47 percent decrease in recidivism. The relationship is stronger and more statistically significant for labor market freedom, with a one percent increase in labor market freedom being associated with a 0.67 percent decline in recidivism.

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