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Right-to-Work Laws and the Extent of Unionization

Henry S. Farber1,2

1 National Bureau of Economic Research · 2 Princeton University

Journal of Labor Economics 1984

It is a well-known fact that the extent of unionization is less in states with right-to-work (RTW) laws. A framework is developed for determining whether RTW laws actually cause a decrease in the extent of unionization or whether they simply mirror preexisting tastes of workers against unions. A set of empirical tests is proposed that can distinguish between these explanations based on differences between RTW and non-RTW states in the demand for union representation, the supply of union jobs relative to that demand, and the observed union/nonunion wage differential. These tests are implemented using disaggregated data from the Quality of Employment Survey and the Current Population Survey, and a pattern is found that is consistent with the hypothesis that RTW laws simply mirror preexisting preferences against union representation.

DOI
10.1086/298036
Volume
2 (3)
Pages
319-352
Language
en
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