IDEAS home Printed from https://ideas.repec.org/a/sae/ilrrev/v76y2023i2p412-433.html

What Are the Consequences of Right-to-Work for Union Membership?

Author

Listed:
  • Kevin J. Murphy

Abstract

Beginning in 2012, several states enacted right-to-work laws, which hamper the ability of labor unions to collect agency fees to finance union services and activities. Because the processes by which these adoptions took place are arguably exogenous, identification of the causal effect of right-to-work on unionization within a state becomes possible. The author uses a set of semi-independent cross-sections drawn from the Current Population Survey for years 2000 to 2018 to investigate the impact of right-to-work on the probability of unionization in the five states that adopted it after 2011. The empirical analysis reveals an economically meaningful and statistically significant adverse effect from right-to-work adoption on union density that is distinct from other factors influencing unionization during that time period.

Suggested Citation

  • Kevin J. Murphy, 2023. "What Are the Consequences of Right-to-Work for Union Membership?," ILR Review, Cornell University, ILR School, vol. 76(2), pages 412-433, March.
    • Handle: RePEc:sae:ilrrev:v:76:y:2023:i:2:p:412-433
    DOI: 10.1177/00197939221128753
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/00197939221128753
    Download Restriction: no
    File URL: https://libkey.io/10.1177/00197939221128753?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Joshua D. Angrist & Jörn-Steffen Pischke, 2010. "The Credibility Revolution in Empirical Economics: How Better Research Design Is Taking the Con out of Econometrics," Journal of Economic Perspectives, American Economic Association, vol. 24(2), pages 3-30, Spring.
    2. Farber, Henry S, 1984. "Right-to-Work Laws and the Extent of Unionization," Journal of Labor Economics, University of Chicago Press, vol. 2(3), pages 319-352, July.
    3. Anna Stansbury & Lawrence H. Summers, 2020. "The Declining Worker Power Hypothesis: An Explanation for the Recent Evolution of the American Economy," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 51(1 (Spring), pages 1-96.
    4. Freeman, Richard B, 1988. "Contraction and Expansion: The Divergence of Private Sector and Public Sector Unionism in the United States," Journal of Economic Perspectives, American Economic Association, vol. 2(2), pages 63-88, Spring.
    5. Lumsden, Keith G & Petersen, Craig H, 1975. "The Effect of Right-to-Work Laws on Unionization in the United States," Journal of Political Economy, University of Chicago Press, vol. 83(6), pages 1237-1248, December.
    6. Ozkan Eren & Serkan Ozbeklik, 2016. "What Do Right‐to‐Work Laws Do? Evidence from a Synthetic Control Method Analysis," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 35(1), pages 173-194, January.
    7. Barry T. Hirsch & David A. MacPherson, 2003. "Union Membership and Coverage Database from the Current Population Survey: Note," ILR Review, Cornell University, ILR School, vol. 56(2), pages 349-354, January.
    8. Warren, Ronald S, Jr & Strauss, Robert P, 1979. "A Mixed Logit Model of the Relationship between Unionization and Right-to-Work Legislation: Comment," Journal of Political Economy, University of Chicago Press, vol. 87(3), pages 648-655, June.
    9. Todd E Vachon & Michael Wallace, 2018. "Red state, blue state: Neoliberalism, politics and public sector union membership in the US states," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 11(3), pages 519-539.
    10. W. Robert Reed, 2003. "How Right-To-Work Laws Affect Wages," Journal of Labor Research, Transaction Publishers, vol. 24(4), pages 713-730, October.
    11. David Card, 2001. "The Effect of Unions on Wage Inequality in the U.S. Labor Market," ILR Review, Cornell University, ILR School, vol. 54(2), pages 296-315, January.
    12. Steven E. Abraham & Paula B. Voos, 2000. "Right-to-Work Laws: New Evidence from the Stock Market," Southern Economic Journal, Southern Economic Association, vol. 67(2), pages 345-362, July.
    13. Anne Metten, 2021. "Rethinking trade union density: A new index for measuring union strength," Industrial Relations Journal, Wiley Blackwell, vol. 52(6), pages 528-549, November.
    14. Henry S. Farber & Bruce Western, 2001. "Accounting for the Decline of Unions in the Private Sector, 1973-1998 ," Journal of Labor Research, Transaction Publishers, vol. 22(3), pages 459-485, July.
    15. Thomas J. Holmes, 1998. "The Effect of State Policies on the Location of Manufacturing: Evidence from State Borders," Journal of Political Economy, University of Chicago Press, vol. 106(4), pages 667-705, August.
    16. repec:rre:publsh:v:34:y:2004:i:1:p:95-111 is not listed on IDEAS
    17. Robert J. Flanagan, 2005. "Has Management Strangled U.S. Unions?," Journal of Labor Research, Transaction Publishers, vol. 26(1), pages 33-63, January.
    18. Stevans Lonnie K, 2009. "The Effect of Endogenous Right-to-Work Laws on Business and Economic Conditions in the United States: A Multivariate Approach," Review of Law & Economics, De Gruyter, vol. 5(1), pages 595-614, October.
    19. Ellwood, David T & Fine, Glenn, 1987. "The Impact of Right-to-Work Laws on Union Organizing," Journal of Political Economy, University of Chicago Press, vol. 95(2), pages 250-273, April.
    20. Steven E. Abraham & Paula B. Voost, 2000. "Right‐to‐Work Laws: New Evidence from the Stock Market," Southern Economic Journal, John Wiley & Sons, vol. 67(2), pages 345-362, October.
    21. Richard Murphy, 2020. "Why Unions Survive: Understanding How Unions Overcome the Free-Rider Problem," Journal of Labor Economics, University of Chicago Press, vol. 38(4), pages 1141-1188.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Saverio Minardi, 2025. "Unions, technology and social class inequalities in the US, 1984–2019," Work, Employment & Society, British Sociological Association, vol. 39(1), pages 115-138, February.
    2. John Geary & María Jesús Belizón Cebada, 2025. "Who are the union free-riders in Ireland? Evidence from the Working in Ireland Survey," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 46(4), pages 1101-1134, November.
    3. Munch, Jakob R. & Olney, William W., 2024. "Offshoring and the Decline of Unions," IZA Discussion Papers 17116, IZA Network @ LISER.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kyung-nok Chun, 2023. "What do Right-to-Work Laws do to Unions? Evidence from Six Recently-Enacted RTW Laws," Journal of Labor Research, Springer, vol. 44(1), pages 94-144, June.
    2. Nguyen, Justin Hung & Qiu, Buhui, 2022. "Right-to-Work laws and corporate innovation," Journal of Corporate Finance, Elsevier, vol. 76(C).
    3. Christopher K. Coombs & Richard Cebula, 2011. "The Impact of Union Corruption on Union Membership," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 50(1), pages 131-148, January.
    4. Jordan Jeffrey & Mathur Aparna & Munasib Abdul & Roy Devesh, 2021. "Did Right-To-Work Laws Impact Income Inequality? Evidence from U.S. States Using the Synthetic Control Method," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 21(1), pages 45-81, January.
    5. Ozkan Eren & Serkan Ozbeklik, 2016. "What Do Right‐to‐Work Laws Do? Evidence from a Synthetic Control Method Analysis," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 35(1), pages 173-194, January.
    6. Michael Wallace & Todd E Vachon & Allen Hyde, 2022. "Two roads diverged: Legal context and changing levels of private and public sector union density in the US states, 1984–2019," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 43(4), pages 1539-1563, November.
    7. Rania Gihleb & Osea Giuntella & Jian Qi Tan, 2024. "The impact of right‐to‐work laws on long hours and work schedules," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 43(3), pages 696-713, June.
    8. Behroz Baraghoshi & Cihan Bilginsoy, 2013. "Interstate Variations in Private Sector Union Density in the U.S," Journal of Labor Research, Springer, vol. 34(2), pages 180-202, June.
    9. Ozkan Eren & Masayuki Onda & Bulent Unel, 2016. "Effects of FDI on Entrepreneurial Activity: Evidence from Right-to-Work and Non-Right-to-Work States," Departmental Working Papers 2016-04, Department of Economics, Louisiana State University.
    10. Eunice S. Han, 2023. "What did unions do for union workers during the COVID‐19 pandemic?," British Journal of Industrial Relations, London School of Economics, vol. 61(3), pages 623-652, September.
    11. Chava, Sudheer & Danis, András & Hsu, Alex, 2020. "The economic impact of right-to-work laws: Evidence from collective bargaining agreements and corporate policies," Journal of Financial Economics, Elsevier, vol. 137(2), pages 451-469.
    12. Xiaoyang Li, 2012. "Workers, Unions, and Takeovers," Journal of Labor Research, Springer, vol. 33(4), pages 443-460, December.
    13. Chen, I-Ju & Chen, Yan-Shing & Chen, Sheng-Syan, 2018. "The strategic choice of payment method in corporate acquisitions: The role of collective bargaining against unionized workers," Journal of Banking & Finance, Elsevier, vol. 88(C), pages 408-422.
    14. Avenancio-León, Carlos F. & Piccolo, Alessio & Pinto, Roberto, 2025. "Resilience in collective bargaining," Journal of Financial Economics, Elsevier, vol. 173(C).
    15. Blanchflower, David G., 2006. "A Cross-Country Study of Union Membership," IZA Discussion Papers 2016, IZA Network @ LISER.
    16. Clemens, Jeffrey & Strain, Michael R., 2025. "Why do labor unions advocate for minimum wage increases?," Labour Economics, Elsevier, vol. 94(C).
    17. Emin M. Dinlersoz & Ruben Hernandez-Murillo, 2002. "Did \\"right-to-work\\" work for Idaho?," Review, Federal Reserve Bank of St. Louis, vol. 84(May), pages 29-42.
    18. Michael J. Hicks & Michael LaFaive & Srikant Devaraj, 2016. "New Evidence on the Effect of Right-to-Work Laws on Productivity and Population Growth," Cato Journal, Cato Journal, Cato Institute, vol. 36(1), pages 101-120, Winter.
    19. Eunice S. Han, 2023. "The effect of changes in public sector bargaining laws on teacher union membership," British Journal of Industrial Relations, London School of Economics, vol. 61(1), pages 133-158, March.
    20. Klasa, Sandy & Maxwell, William F. & Ortiz-Molina, Hernán, 2009. "The strategic use of corporate cash holdings in collective bargaining with labor unions," Journal of Financial Economics, Elsevier, vol. 92(3), pages 421-442, June.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:ilrrev:v:76:y:2023:i:2:p:412-433. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: http://www.ilr.cornell.edu .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.