Skip to comments.Study: Right-to-Work Laws Lead To More People, More Jobs and Higher Pay
Posted on 09/04/2013 8:33:26 AM PDT by MichCapCon
States that have passed right-to-work laws have seen increased employment, higher pay and expanding population, according to a new study.
The report, released today, analyzes data from a 64-year period, 1947-2011. The year 1947 is when federal legislation first allowed states to give workers the choice of whether to financially support unions as a condition of employment. The study is co-authored by Michael Hicks, an economics professor and director of the Center for Business and Economic Research at Ball State University, and Michael D. LaFaive, director of the Morey Fiscal Policy Initiative at the Mackinac Center for Public Policy.
"It is impossible to totally disentangle right-to-work from every other business friendly policy," Hicks said. "That being said, the best studies in this area acknowledge that right-to-work laws are really the king of business friendly policies."
"There was and remains a lot of debate over whether or not right-to-work laws are economically beneficial," he said. "We believe our study confirms that right-to-work laws have a measurable and positive impact on the economic well-being of a state and its citizens."
The study looks at annual employment growth rates, inflation-adjusted personal income, and population figures to measure economic progress. Each of these areas improved significantly more in right-to-work states and the report concludes that right-to-work laws "have a positive and sometimes very positive impact on the economic well-being of states and their residents."
The authors said there are three main challenges for researchers when analyzing the effects of right-to-work laws.
First, is the timing the amount of time it takes for the impact of legislation to take place varies. To solve this issue, the study covered a 64-year time period; from the beginning of right-to-work legislation, and three shorter periods as well.
Second, the evolution of the economy national, state and local economies are rapidly changing. The report looked at how much of an effect right-to-work laws had during three different time periods. The data show that from 1947 to 1970, there was no statistically significant impact of these laws in states that had them. From 1971 to 1990, however, right-to-work laws increased average annual employment and personal income growth by almost 1 whole percentage point and population growth by 1.3 percentage points in these states. From 1991 through 2011, the effect of worker freedom laws was less than the previous period, but still positive and statistically significant.
The third challenge is that right-to-work laws may be correlated with the other factors that affect the areas being studied (for example, favorable tax policies). The study uses a methodology that considers certain factors and tries to create a "natural experiment."
Hicks said that the study is unique in breaking information into time periods and being able to separate a business friendly environment and right-to-work laws.
"All the studies either say that they cannot measure the impact of right-to-work in the data or that they find it, but only in a very narrow area of the economy, like just in manufacturing," Hicks said. "This study is novel in that we've really tried to answer the questions related to the Old South issues. Most of the early right-to-work states passed it for reasons other than to create jobs. They saw unions as a challenge to a segregationist environment. By distinguishing states that were and were not a part of the Old South, by looking at those that had big manufacturing employment prior to Taft-Hartley, I think we've controlled for that problem."
Michigan's right-to-work law went into effect in late March. The Mackinac Center for Public Policy has set up an informational website at www.MIWorkerFreedom.org. Teachers in the state can only opt-out of their union in the month of August, provided their school's contract is expired or was signed after March 28, 2013.
In a related story... Water is wet.
Crazy isn’t it.
Now if only we could beat Rick Snyder’s obsession with green tech out of him.
When the liberal communist regime reads this the writer can expect the wrath of Unions, NSA and IRS.
Okay maybe I’m exaggerating the NSA may not do anything.
What liberals never seem to grasp (or want to even try to grasp) is that in a free market, people generally will be paid what their skill level will bear. The idea that people with skills toil away at $5.00 per hour jobs because a greedy corporation is keeping them down is nonsense. For the most part (and granted, there are some exceptions), people don’t remain at minimum wage jobs. Even high school kids who start at minimum wage jobs see their salaries increase if they stick with a job and develop skills. Its only when someone aimlessly hops from job to job without any logic or pattern to it that their wages remain depressed.
Imagine if non-union employees in a union shop also had the right to bargain.
The whole idea is to drive the wage scale down, and reduce the costs of emplyoing skilled and experienced employees. You either cut the pay and benefits, or (thanks to obamacare) reduce the number of hours per week. The current labor market is an employers market. The US labor pool isn’t the only game in town anymore. The employers have the choice of employing you, a suitable immigrant, or farming out the work to an employee somewhere else in the world with a more favorable business climate, and cheaper labor rates.
This is okay to most people, because now the government will step in and tax everybody an ever increasing amount to pay for all of the now non-competitive unemployed. Corporate welfare at its finest. Nice scam if you can get in on it.
Right to Work states are great until you are fired and a 22 yr old Indian takes your job Dell is a great example of that scam. If you’re over 50 adios!
Which means “progressives” must oppose them at all costs.
Sick. The very notion that a FEDERAL law is required to ALLOW states to ALLOW people not to pay dues to a protection racket (union).
Lying liar liar-pants!
Black people can’t get anything but minimum-wage jobs and they can never, never get a higher-paying job, ever, ever, EVER!!! Racist!!!
The U.S. Constitution is the ONLY source of power for the federal government. The Declaration of Independence acknowledges that the individual is born with God-given "unalienable rights" including "Life, Liberty, and the pursuit of Happiness." Government is coercive power and liberty is the absence of government coercion. The federal government has no rights or legitimate powers outside of those enumerated in the U.S. Constitution. So the United States government is established on the principle that the federal government's rights and powers are delegated, enumerated, and limited and the American People's rights and powers are not delegated or enumerated but are God-given and unalienable.
The first ten amendments were meant to be a sampling, not an exhaustive list, of these unalienable rights. As the Declaration of Independence and the Tenth Amendment make clear, the states and the people have the default of liberty. Rights like "the right to privacy" and "the right to work" do not have to be stated in the Constitution because, unlike the federal government, the individual's rights are NOT enumerated.
Where things have got convoluted is where SCOTUS and the federal government have got involved in interfering with individuals' (and states') rights. It is not the federal government's job to decide what the rights, powers, and liberties of the people are. It is the federal government's job to keep itself inside the limitations of the Constitution. And it is the American People's job to ensure the government does so.
Only where the Constitution delegates and enumerates power to the federal government or excludes power from the states may the federal government enforce its authority upon the states and individuals. This includes the Thirteenth Amendment banning slavery. Scotus modern-day Socialist rulings notwithstanding, the federal government has no other legitimate, constitutional authority over the states
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