Many Cable-TV pundits are commenting on the effects of Right to Work laws on state and country economic outcomes. Unfortunately few have done their homework to examine what scholarly research finds. Stevans (2009) offers a sophisticated study of the effects of Right to Work laws on state economic outcomes. Here’s his conclusion:
“Although right-to-work states may be more attractive to business, this does not necessarily translate into enhanced economic verve in the right-to-work state if there is little “trickle-down” from business owners to the non-unionized workers. While the number of self-employed is higher and business bankruptcies lower on average in right-to-work states, there is no significant difference in capital formation or employment rates, ceteris paribus. In addition, per-capita personal income and wages are both lower, yet proprietors’ income is higher in right-to-work states.”
Reference
Stevans, Lonnie. (2009). The Effect of Endogenous Right-to-Work Laws on Business and Economic Conditions in the United States: A Multivariate Approach. Vol 5 No. 1. http://www.bepress.com/rle/vol5/iss1/art25 DOI: 10.2202/1555-5879.1352
Also available at: http://www.americanrightsatwork.org/dmdocuments/clearinghouse_resources/stevans_article.pdf