Job growth twice as fast, wage growth four times faster, in right-to-work states

Between 1980 and 2011, overall employment levels rose by 71 percent in right-to-work states. In non-right-to-work states, they only rose by 32 percent. That differential does not come at the expense of wages, which grew four times as fast in right-to-work states: 12 percent versus 3 percent elsewhere. The explanation is clear enough. The productivity gains from escaping union work rules are shared with employees as employers bid up wages. The short-term monopoly gains to unionized workers eventually are, over time, more than offset by productivity losses. The New Deal union model is an economic mistake of major proportions.

Hoover Institute

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