CRI Focus Areas


The positive benefits of a Right to Work law for Delaware

11/28/2018

    A recent report from the Competitive Enterprise Institute confirms once again the economic boost that right to work laws provide states.     Richard Vedder and Jonathan Robe, in "An Interstate Analysis of Right to Work Laws," confirm that over time the 24 states with right to work (RTW) law have faster growing economies than states without such a law. Over a 35-year period, employment rose 105% in RTW states compared to only 50% in non-RTW states. Similarly, inflation-adjusted personal income went up 165% in the RTW states and 99% in the non-RTW states. And even though RTW states had net in-migration while non-RTW states experienced net out-migration, per capita income grew faster in the RTW states.     While in the short run unionization may force wages up for those involved, in the long run closed shops reduce capital spending and induce the out-migration of jobs and workers.     Using regression analysis, Vedder and Robe estimate the size of the personal income and per capita personal income loss for the non-RTW states. Delaware is estimated to have lost $2.9 billion in total personal income and $3,436 in per capita personal income.     Regardless of the exact accuracy of these estimates, the direction is clear: not having a right to work law discourages industry from locating and expanding in a state. It is time for Delaware to face up to this fact. article link: https://cei.org/content/interstate-analysis-right-work-laws    


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