The Economic Effects of Right to Work Laws

Right to work (RTW) laws have had growing labor market importance, as the proportion of Americans living in RTW states has risen over time, mainly because of a large in-migration of labor and capital. In the 2000–2009 period alone, over 5 million Americans moved into RTW states from non-RTW jurisdictions. This resource movement has led to greater output growth in RTW states. Controlling for other factors, it appears RTW is positively associated with rising income per capita as well, and arguably an improved quality of life if migration statistics are any indicator. The long term political equilibrium that has led to little change over time in the adoption of RTW laws could end as pro-RTW forces gain political clout relative to their union opponents.