Membership and wage impact of right-to-work laws |
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Authors: | William J Moore |
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Institution: | (1) University of Houston, USA |
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Abstract: | This paper examines the effects of “Right-to-Work” laws on union membership and on the earnings of union and nonunion members.
Using regression analysis, we find that once the simultaneous equations bias between the degree of unionization and RTW laws
is eliminated, RTW laws have no statistically significant influence on union membership. Similarly, using a human-capital
earnings model, we find that RTW laws have no significant influence on the wages of all workers, union workers, or nonunion
workers. However, we did find evidence that such laws may promote aggressive union wage policies resulting in a larger union/nonunion
relative wages advantage in RTW states than in non-RTW states. |
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Keywords: | |
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