Startseite Did Right-To-Work Laws Impact Income Inequality? Evidence from U.S. States Using the Synthetic Control Method
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Did Right-To-Work Laws Impact Income Inequality? Evidence from U.S. States Using the Synthetic Control Method

  • Jeffrey Jordan , Aparna Mathur EMAIL logo , Abdul Munasib und Devesh Roy
Veröffentlicht/Copyright: 10. August 2020

Abstract

In this paper, we use the Synthetic Control Method (SCM) to examine the impact of a state’s adoption of a Right-To-Work (RTW) law on income inequality. We explore possible pathways through which RTW laws may impact inequality, namely, unionization, investment, and wages. Our finding of a lack of impact of RTW laws on inequality is further supported by findings of a lack of impact of the law on these variables. Our results follow Farber (1984), who suggests that RTW laws may simply mirror pre-existing preferences against union representation. Hence RTW laws are not the primary driver of changes in inequality.


Corresponding author: Aparna Mathur, Resident Scholar, American Enterprise Institute, 1789 Massachusetts Avenue, Washington, DC, 20036, USA, E-mail:
Disclaimer: This paper was prepared by Abdul Munasib (in collaboration with Jeffrey Jordan, Aparna Mathur and Devesh Roy) in his personal capacity. The opinions expressed in this paper are the author's own and do not reflect the views of the Bureau of Economic Analysis, the U.S. Department of Commerce, or the United States government.

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Supplementary Material

Supplementary material to this article can be found online at (https://doi.org/10.1515/bejeap-2019-0299).

Received: 2019-09-10
Accepted: 2020-06-08
Published Online: 2020-08-10

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