How Right-to-Work Laws Affect Wages
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.
|Date of creation:||08 Jun 2005|
|Note:||Type of Document - pdf; pages: 31. This paper was published in the Journal of Labor Research, Vol. 24, No. 4 (2003): 713-730.|
|Contact details of provider:|| Web page: http://econwpa.repec.org|
References listed on IDEAS
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- David Neumark & Michael L. Wachter, 1995. "Union Effects on Nonunion Wages: Evidence from Panel Data on Industries and Cities," ILR Review, Cornell University, ILR School, vol. 49(1), pages 20-38, October.
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- Henry S. Farber, 1983. "Right-to-Work Laws and the Extent of Unionization," NBER Working Papers 1136, National Bureau of Economic Research, Inc.
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- Robert Tannenwald, 1997. "State regulatory policy and economic development," New England Economic Review, Federal Reserve Bank of Boston, issue Mar, pages 83-108.
- Moulton, Brent R, 1990. "An Illustration of a Pitfall in Estimating the Effects of Aggregate Variables on Micro Unit," The Review of Economics and Statistics, MIT Press, vol. 72(2), pages 334-338, May.
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