Wednesday, January 04, 2012


So-Called Right to Work Law Would Reduce Wages
by Mike Hall, Jan 3, 2012

More evidence that backers of Indiana’s ”right to work” for less (RTW) legislation are wrong when they claim so-called right to work promotes economic growth.
A new report out moments ago from the Economic Policy Institute (
EPI) finds that if a “right to work” law was adopted in Indiana it would be far more likely to reduce workers’ wages and benefits. It follows the release this morning of similar findings by University of Notre Dame economic professor Marty Wolfson.
In “
Working hard to make Indiana look bad: The tortured, uphill case for ‘right to work” political economist Gordon Lafer writes: In Indiana and elsewhere, large sums of money have been devoted to backing RTW bills, with lobbyists claiming that RTW significantly improves both the number of jobs in a state and the wages people earn because companies that had avoided the state will flock there. The evidence shows that these claims are completely without scientific foundation.
Lafer, who is also a professor at University of Oregon Labor Education and Research Center, says rigorous, properly designed studies have found that ”right to work” laws reduce wages by $1,500 a year, for union and nonunion workers, and lower the likelihood that union and nonunion employees get health care coverage or pensions through their jobs. They have also found that “right to work” laws have no impact on job growth in states that adopt them. He takes to task the National Right to Work Committee for its twisted interpretation of job growth data. Lafer also highlights the economic distortions in reports from the American Legislative Exchange Council (ALEC) and the Chamber of Commerce.
Legislators should decide this issue on the basis of economic facts rather than political ideology.

Click here for the full report.

Editorial : Tennessee has the right to work law. So, where are all the JOBS ? Right to Work law = Right to Work for Less ! No Jobs !

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