A ‘Positive Effect on Employment, Output and Personal
Across America, Right to Work states have long benefited
from economic growth far superior to that of states in which millions of
employees are forced to join or pay dues or fees to a labor union just to keep
And union bosses and their allies have long tried to argue
that no one should pay any attention to the data showing that Right to Work
status is correlated with faster growth in jobs and aggregate employee
In recent years, however, Big Labor’s task in trying to
distract public attention from forced-unionism states’ comparatively poor
economic performance has become increasingly difficult.
Economists Contend Right To Work Laws Cause Accelerated
A key reason why is documented in scholarly studies that
identify an undeniable positive relationship between the presence of a Right to
Work law and accelerated economic growth.
A 2018 overview by Jeffrey Eisenach, an economist currently
affiliated with NERA Economic Consulting, the American Enterprise Institute,
and George Mason University, summarized the growing body of evidence regarding
the economic impact of state Right to Work laws.
As Dr. Eisenach noted at the outset of his May 2018 paper
(“Right to Work Laws: The Economic Evidence”), much of the debate over Right to
Work laws, now on the books in 27 states, “has focused on their potential
Dr. Eisenach, a specialist in issues concerning market
competition, regulation and consumer protection, has written or edited 19 books
and monographs, and served as a vice president of the Economic Club of
Washington, D.C., from 2011 until 2018.
His paper cited the findings of earlier studies regarding
the impact of Right to Work laws and forced unionism by economists such as
Thomas Holmes of the University of Minnesota, Michael Hicks of Ball State
University in Indiana, and Barry Hirsch of Georgia State University.
Dr. Eisenach concluded that, other things being equal,
“businesses are more likely to locate in states” with Right to Work laws.
There is also evidence, he added, that Right to Work laws
have “a direct, positive effect on employment, output, and personal income.”
‘Businesses Are More Inclined to Open Plants’ In Right to
Economic models indicating that Right to Work protections
for employees foster higher capital investment levels and enhanced
productivity, leading to higher employee pay and more job security, are
consistent with straightforward comparisons of growth performance, emphasized
The data backing up researchers’ conclusion that “businesses
are more inclined to open plants” in Right to Work states than in non-Right to
Work states are especially strong.
For example, U.S. Census Bureau data cited by Dr. Eisenach
show that, from 2001 to 2015, the number of private firms located in the 22
states that were already Right to Work as of 2001 grew by 10.2%.
That increase is nearly seven times as great as the paltry
overall gain of just 1.5% for the 25 states that were still forced unionism as
(See the chart below for more information.)
National Right to Work Committee Vice President Greg Mourad
“The vital protections state Right to Work laws furnish for
personal freedom and the economic energy they foster have been a boon for the
Mr. Mourad continued:
“Unfortunately, under the pro-forced unionism National Labor
Relations Act and Railway Labor Act, millions of employees in the 23 non-Right
to Work states and even some employees in Right to Work states are still forced
to fork over money to Big Labor bosses in order to keep their jobs.
“The Committee and its 2.8 million members and supporters
are determined to abolish such unjust coercion of workers from coast to coast.”
Committee Leads Charge For Bill Repealing Forced Dues
“Adoption by Congress of S.525/H.R.2571, the National Right
to Work Act, would be a major step in the right direction,” said Mr. Mourad.
“S.525/H.R.2571 would repeal all the current forced-dues
provisions in federal labor law, ensuring that every private-sector employee in
America has the Right to Work.
“And thanks primarily to Right to Work members’ persistent
lobbying of their elected officials, as of the beginning of August, 70 U.S.
representatives and 21 U.S. senators had already signed on as sponsors of
federal compulsory-dues repeal.”