More jobs, faster growing incomes, all that good stuff
The economic evidence for the value of right-to-work laws, which allows individual workers to choose whether or not to join or otherwise support a union, continues to build. Last week the Cascade Policy Institute issued a report indicating that Oregon would have 233,000 additional jobs and wage income would be 13 percent higher if it had passed a right-to-work law in 1985, at about the time neighboring Idaho took that step.
The paper, assembled by Ph.D. economists Eric Fruits and Randall Pozdena, compared the economic performances of right-to-work and non-right-to-work states. Fruits and Pozdena found that right-to-work states enjoyed a "robust" and positive effect on employment, personal income, and wages.
Fruits and Pozdena reached their conclusion after performing a regression analysis that accounted for a wide range of factors, such as the national business environment, population density, taxes and education.
Mackinac Center analysts have long advocated a right-to-work law for Michigan based on our own straight-up comparisons of right-to-work and non-right-to-work states. With Indiana passing its own law, Michiganders will soon get to see the value of labor freedom up close.