FSS-DECO seminar: Academic Freedom and Creativity: An Empirical Investigation

Speaker: Prof. Di SIMA, Assistant Professor, Institute of Economics and Finance, Nanjing Audit University, China

Date: 20 Aug 2025 (Wednesday)

Time: 14:00-15:15

Language: English

Venue: E21B-G016

Abstract: This study examines the impact of academic freedom reform on university graduates’ creativity using a large, multi-decade, cross-country sample. We construct a novel creativity index based on occupational task data and analyze how reforms in an individual’s home country affect their creativity after immigrating to the United States. Exploiting variation in reform timing across countries, we find that academic freedom reform significantly enhances graduates’ labor market creativity. Results are robust to multiple DID estimators, alternative specifications, placebo tests, and IV methods, as well as approaches addressing potential biases. Effects are particularly pronounced for developing countries, environments with decentralized governance, and low corruption. Reforms appear to boost creativity by encouraging higher educational attainment, facilitating entry into high-tech and research-oriented fields, and promoting managerial and professional roles. Our findings underscore the economic value of academic freedom and its potential as a policy instrument for nurturing student creativity.