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Right-to-Work Laws and State-Level Economic Outcomes: Evidence from the Case Studies of Idaho and Oklahoma Using Synthetic Control Method

Author

Listed:
  • Ozkan Eren

    (Department of Economics, University of Nevada, Las Vegas)

  • I. Serkan Ozbeklik

    (Robert Day School of Economics and Finance, Claremont McKenna College and University of Maryland, College Park)

Abstract

The role of right-to-work laws on state economies, labor organizations and employees are controversial and important policy questions. Empirical evidence is far from being conclusive predominantly due to identification issues. Using a recently developed econometric technique and exploiting the two most recent cases, -Idaho and Oklahoma- we examine the effectiveness of right-to-work laws on state-level outcomes. Our results indicate that the passage of right-to-work laws in Oklahoma affected union membership and coverage rates and, possibly to some extent, foreign direct investment. As for manufacturing employment, per capita income and average wage rates, we do not observe any impact. Our findings for Idaho, on the other hand, suggest that the laws increased the manufacturing employment, while it had no effect on per capita income and are inconclusive for foreign direct investment..

Suggested Citation

  • Ozkan Eren & I. Serkan Ozbeklik, 2011. "Right-to-Work Laws and State-Level Economic Outcomes: Evidence from the Case Studies of Idaho and Oklahoma Using Synthetic Control Method," Working Papers 1101 Classification-JEL J, University of Nevada, Las Vegas , Department of Economics.
    • Handle: RePEc:nlv:wpaper:1101
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    File URL: http://web.unlv.edu/projects/RePEc/pdf/1101.pdf
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    References listed on IDEAS

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    Cited by:

    1. Dan S. Rickman, 2013. "Should Oklahoma Be More Like Texas? A Taxing Decision," The Review of Regional Studies, Southern Regional Science Association, vol. 43(1), pages 1-22, Summer.
    2. Woods, Keegan & Tan, Kelvin Jui Keng & Faff, Robert, 2019. "Labor unions and corporate financial leverage: The bargaining device versus crowding-out hypotheses," Journal of Financial Intermediation, Elsevier, vol. 37(C), pages 28-44.
    3. Noémi Kreif & Richard Grieve & Dominik Hangartner & Alex James Turner & Silviya Nikolova & Matt Sutton, 2016. "Examination of the Synthetic Control Method for Evaluating Health Policies with Multiple Treated Units," Health Economics, John Wiley & Sons, Ltd., vol. 25(12), pages 1514-1528, December.

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