The Right to Work, Power Resources, and Economic Inequality

2020/03/01 by Tom VanHeuvelen · 1 citation
Social Sciences · #Labor Movements and Unions #International Labor and Employment Law #Social Policy and Reform Studies

paper · doi:10.1086/708067

openalex publication_date 2020/03/01 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/29

Abstract

How do right to work laws affect the distribution of economic resources? While sociological theories would predict inequality to increase following their passage, previous research finds these laws to be largely inconsequential. The author compiles a unique data set of 77 years of income and wage inequality data from the Internal Revenue Service, the U.S. census, the U.S. Union Sourcebook, and the National Labor Relations Board. After replicating inconsistent results from previous studies, the author shows that they mask substantial and robust heterogeneity across local areas. Right to work laws are consequential when passed in times and places where labor has something to lose. They remove the negative association between labor union membership and inequality, with the greatest consequences of right to work passage in highly unionized areas. In total, results suggest that right to work laws work as intended, increasing economic inequality indirectly by lowering labor power resources. Theoretical and policy implications are discussed.

Citations

• Skills, education, and the rise of earnings inequality among the “other 99 percent”
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Cited by

• Trade union [wikipedia]