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Regulation and Income Mobility

  • Vincent Geloso EMAIL logo and Pradyot Sharma
Published/Copyright: April 14, 2025

Abstract

Much of the discussion on income mobility is focused on mitigating inequality through taxation and redistribution without considering the institutional and regulatory landscape that contributes to a decrease in income mobility. We present evidence on the role of economic freedom and deregulation in increasing income mobility and argue that policies promoting the two offer a more potent solution towards improving the economic status of the poor. Economic freedom can mitigate the impact of technological shocks on individuals in the lower end of the income distribution, an issue that has significant policy implications in light of the changing technological landscape.

JEL Classification: J62; J44; L51

Corresponding author: Vincent Geloso, Department of Economics, George Mason University, Fairfax, USA, E-mail:

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Received: 2025-03-14
Accepted: 2025-03-16
Published Online: 2025-04-14

© 2025 Walter de Gruyter GmbH, Berlin/Boston

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