Contradicting arguments typically used to advance so-called Right to Work legislation, new research from the Economic Policy Institute (EPI) shows that wages and benefits are actually lower in states with such anti-worker laws on the books.
The paper, released as part of EPI’s Raising America’s Pay project, finds that the negative impact of Right to Work (RTW) laws—which undercut unions by allowing workers to benefit from collective bargaining without having to pay dues—translates to $1,558 less a year in earnings for a typical full-time worker.
“Collective bargaining is a clear way to raise wages, and Right to Work laws undercut it.”
—Will Kimball, Economic Policy Institute
Wages in RTW states are 3.1 percent lower than those in non-RTW states, after controlling for individual demographic and socioeconomic factors as well as state macroeconomic indicators, according to EPI senior economist Elise Gould and research assistant Will Kimball.
In a news release, Gould put it starkly: “It’s abundantly clear that Right to Work laws are negatively correlated with workers’ wages.”
In addition, EPI reports that workers in RTW states are less likely to have employer-sponsored health insurance or pension coverage.
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