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How Right-To-Work Laws Affect Wages

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  • W. ROBERT REED

Abstract

I examine the wage effects of Right-To-Work (RTW). Using state-level data, I estimate that, ceteris paribus, RTW states have average wages that are significantly higher than non-RTW states. This result is robust is across a wide variety of specifications. An important distinctive of this study is that it controls for state economic conditions at the time states adopted RTW. States that adopted RTW were generally poorer than other states. Failure to control for these initial conditions may be the reason that previous studies have not identified a positive wage impact for RTW.

Suggested Citation

  • W. Robert Reed, 2003. "How Right-To-Work Laws Affect Wages," Journal of Labor Research, Transaction Publishers, vol. 24(4), pages 713-730, October.
    • Handle: RePEc:tra:jlabre:v:24:y:2003:i:4:p:713-730
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    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Right-to-Work Gives Michigan Workers a Choice
      by James Sherk in The Foundry on 2012-12-17 23:31:58

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    Cited by:

    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. Das, Biswa & Skidmore, Mark, 2018. "Asymmetry in Muncipal Government Responses in Growing versus Shrinking Counties with Focus on Capital Spending," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 48(4), October.
    3. 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.
    4. 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.
    5. 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.
    6. Stevans, Lonnie, 2007. "The Effect of Right-to-Work Laws on Business and Economic Conditions: A Multivariate Approach," MPRA Paper 5638, University Library of Munich, Germany.
    7. Nguyen, Justin Hung & Qiu, Buhui, 2022. "Right-to-Work laws and corporate innovation," Journal of Corporate Finance, Elsevier, vol. 76(C).
    8. Richard J. Cebula & John E. Connaughton & Caroline Swartz, 2020. "Right-to-Work Laws as Economic Freedom: Their Role in Influencing the Geographic Pattern of Manufacturing Jobs, Incomes, and Finances," American Business Review, Pompea College of Business, University of New Haven, vol. 23(2), pages 431-450.
    9. Melo, Vitor & Sigaud, Liam, 2024. "Right-to-Work Laws and Labor Market Discrimination: Evidence from a Field Experiment," Working Papers 12375, George Mason University, Mercatus Center.
    10. Tessa Conroy & Steven Deller & Alexandra Tsvetkova, 2017. "Interstate Relocation Of Manufacturers And Business Climate," Review of Urban & Regional Development Studies, Wiley Blackwell, vol. 29(1), pages 18-45, March.
    11. 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.
    12. Mark Skidmore & William Dyar, 2015. "Diminishing Health, Rising Health Care Costs and Long-run Growth in Local Government Spending," CESifo Working Paper Series 5646, CESifo.
    13. M. Rodwan Abouharb & Benjamin O. Fordham, 2020. "Trade and Strike Activity in the Postwar United States," Social Sciences, MDPI, vol. 9(11), pages 1-25, October.

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