Abstract
Economic freedom is generally associated with higher average income levels, but does it benefit the very poor as well? Does it help them to escape their disadvantaged position? Does it reduce the probability of falling into low-income status? This paper deals with those questions using longitudinal data from Canada regarding the duration of low income spells, as well as entries and exits from low-income status from 1992 to 2020. Aggregated at the provincial level and inside a panel regression approach, these different indicators of low-income status are negatively related (i.e., less poverty) with the Fraser Institute’s Economic Freedom of North America (EFNA) index.
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