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Do Institutions Affect the Wage Structure? Right-to-Work Laws, Unionization, and the Minimum Wage

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Oren M. Levin-Waldman ()
Abstract

Union strength is capable of boosting wages for workers at the low end of the income scale. Even when differences in education and industry type are accounted for, workers in right-to-work states have a greater probability of earning close to the minimum wage than workers in states with relatively high union density. The decline of unionization requires that other labor market institutions, mainly the minimum wage, be used to improve the distribution of income in order to combat the continuing growth of inequality in the United States

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Paper provided by Levy Economics Institute, The in its series Economics Public Policy Brief Archive with number 57.

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  1. Brown, Charles & Gilroy, Curtis & Kohen, Andrew, 1982. "The Effect of the Minimum Wage on Employment and Unemployment," Journal of Economic Literature, American Economic Association, vol. 20(2), pages 487-528, June. [Downloadable!] (restricted)
  2. David Neumark & William Wascher, 1992. "Employment effects of minimum and subminimum wages: Panel data on state minimum wage laws," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 46(1), pages 55-81, October.
  3. Fortin, Nicole M & Lemieux, Thomas, 1997. "Institutional Changes and Rising Wage Inequality: Is There a Linkage?," Journal of Economic Perspectives, American Economic Association, vol. 11(2), pages 75-96, Spring. [Downloadable!] (restricted)
  4. Gordon, Robert J, 1995. "Is There a Trade-off between Unemployment and Productivity Growth?," CEPR Discussion Papers 1159, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  5. Alida Castillo Freeman & Richard B. Freeman, 1991. "Minimum Wages in Puerto Rico: Textbook Case of a Wage Floor?," NBER Working Papers 3759, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  6. Oren M. Levin-Waldman, 1998. "Exploring the Politics of the Minimum Wage," Macroeconomics 9805010, EconWPA. [Downloadable!]
  7. Hungerford, Thomas L, 1993. "U.S. Income Mobility in the Seventies and Eighties," Review of Income and Wealth, Blackwell Publishing, vol. 39(4), pages 403-17, December.
  8. Welch, Finis, 1974. "Minimum Wage Legislation in the United States," Economic Inquiry, Oxford University Press, vol. 12(3), pages 285-318, September.
  9. Oren Levin-Waldman, 1999. "The Minimum Wage and Regional Wage Structure: Implications for Income Distribution," Macroeconomics 9904004, EconWPA. [Downloadable!]
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