BTW, RTW state wages are 9% lower than others. However, more importantly, their cost of living is 19% lower. Hmmm.
Right-to-work law - Wikipedia, the free encyclopedia
Thank you, Quazi!
Walker won. Nuff said.
If rational thought is lacking, then any argument or debate on the matter would be pointless.
Last edited by Karl; 06-11-12 at 10:16 AM.
Source: Lonnie K. Stevans, “The Effect of Endogenous Right-to-Work Laws on Business and Economic Conditions in the United States: A Multivariate Approach,” Review of Law and Economics, 2009.One might expect that right-to-work legislation would help “revive” a state’s economy because businesses would be more amenable to moving to those states with right-to-work laws. While the results of this study empirically support that right-to-work states are likely to have more self-employment and less bankruptcies on average relative to non-right-to-work states, there is certainly no more business capital formation as measured by the number of businesses and the ratio of firm “births” to total firms in right-to-work states. Moreover, from a state’s economic standpoint, being right-to-work yields little or no gain in employment and real economic growth. Wages and personal income are both lower in right-to-work states, yet proprietors’ income is higher, ceteris paribus. As a result, while right-to-work states may maintain a somewhat better business environment relative to non-right-to-work states, these benefits do not necessarily translate into increased economic verve for the right-to-work states as a whole—there appears to be little “trickle-down” tothe largely non-unionized workforce in these states.
For those looking for the differences in per capital personal income, salaries and wages, and proprietors' income, per capital personal income was 0.4% lower in right-to-work states and average wages and salaries were 2.3% lower in right-to-work states. In contrast, properietors’ income was 1.9% higher in right-to-work states. All three variables were statistically significant at a 99% level of confidence.
Source: W. Robert Reed, “How Right-To-Work Laws Affect Wages,” Journal of Labor Research, Fall 2003.I find that after accounting for the influence of economic conditions that were present when states adopted Right-to-Work laws, RTW states have significantly higher wages than would otherwise be expected. This finding is robust across a wide variety of model specifications. Perhaps surprisingly, past economic conditions “explain” a large amount of the variation in current state wages.
The bottom line is that the economic literature is mixed. Where there seems to be agreement is that the impact of right-to-work laws on major economic variables is probably small. It's not an economic panacea or recipe for economic destruction as exaggerated popular commentary might seem to suggest.
I have an answer for everything...you may not like the answer or it may not satisfy your curiosity..but it will still be an answer. ~ Kal'Stang
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"There is an excellent correlation between giving society what it wants and making money, and almost no correlation between the desire to make money and how much money one makes." ~Dalio
Seems awfully close to be pure coincidence....
"The necessaries of life occasion the great expense of the poor. They find it difficult to get food, and the greater part of their little revenue is spent in getting it. The luxuries and vanities of life occasion the principal expense of the rich, and a magnificent house embellishes and sets off to the best advantage all the other luxuries and vanities which they possess. ... It is not very unreasonable that the rich should contribute to the public expense, not only in proportion to their revenue, but something more than in that proportion."
-- Adam Smith