Introduction
Right-to-work (RTW) laws are one of the most prominent and politically contentious economic policy issues in the U.S. today. RTW laws are enacted by state governments to prohibit what are called “union security clauses” in collective bargaining agreements. These union-supported clauses can require workers at unionized firms to join the union or pay agency fees to the union as a condition of employment. In practice, when a state has RTW protections, workers at unionized firms cannot be required to pay fees to the union in order to retain their job.
Both sides of the political divide make emphatic claims about the impacts of RTW laws, and about unions more broadly. Despite many historical studies, there is little consensus on the impact of RTW laws on local economies. RTW proponents, such as business lobbies, argue that RTW laws make states more attractive for investment, and they typically point to faster growth in income and total employment in RTW states over recent decades as supporting evidence. For example, states that were RTW in 1977 experienced aggregate employment and population growth during 1978–2017 of 105% and 90%, respectively, compared with 49% and 35% among non-RTW states.[1] Conversely, RTW opponents, including unions and union-supported think tanks, argue that stronger unions benefit both unionized and nonunion workers and that RTW laws weaken unions and thus undermine their ability to produce these benefits. They highlight that wages and...
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