Using US state-level economic freedom measures, we investigate the extent that changes in
economic freedom affect US State income growth. More importantly, we study how this effect
differs across income quintiles, allowing us to address the particularly timely question of who
benefits from increases in economic freedom and who does not. Our results indicate that
while increases in economic freedom positively contribute to income growth, the strength of
this effect differs across quintiles.

Using US state level economic freedom measures, we investigate the extent that economic
freedom affects US State level income, and more importantly how this effect differs across
income quintiles. This allows us to look beyond the basic question of whether economic
freedom is good for income to the particularly timely question of who benefits and who
doesn t. Our results indicate that while economic freedom positively contributes to income
growth, the strength of this effect differs across quintiles, and most strikingly, is absent for the …