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The role of firm age in the impact of right-to-work laws on job creation

Author

Listed:
  • Israt Jahan

    (University of Wisconsin- La Crosse)

  • Amir Tayebi

    (University of Wisconsin- La Crosse)

Abstract

In this paper, we investigate the effect of right-to-work (RTW) laws on the share of jobs among different firm age groups in Indiana and Wisconsin. Using synthetic control methods, we find that RTW laws negatively impact younger firms in Indiana while benefiting older firms. In contrast, RTW laws have no significant impact on the share of jobs in Wisconsin. These findings show that RTW laws affect businesses in different ways, depending on the industry and union presence. Policymakers should consider firms' age and local economic conditions when making decisions about these laws.

Suggested Citation

  • Israt Jahan & Amir Tayebi, 2025. "The role of firm age in the impact of right-to-work laws on job creation," Economics Bulletin, AccessEcon, vol. 45(3), pages 1467-1474.
    • Handle: RePEc:ebl:ecbull:eb-25-00222
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    File URL: http://www.accessecon.com/Pubs/EB/2025/Volume45/EB-25-V45-I3-P126.pdf
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    Keywords

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    JEL classification:

    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
    • J5 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining

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