,NEW EVIDENCE FROM THE STOCK MARKET ON RIGHT-TO-WORK LAWS

Steven E. Abraham; Paula B. Voos

doi:10.1108/S0742-618620190000025011

,NEW EVIDENCE FROM THE STOCK MARKET ON RIGHT-TO-WORK LAWS

Steven E. Abraham, Paula B. Voos

School of Management and Labor Studies, Labor Studies & Empl Rels

Research output: Contribution to journal › Article › peer-review

Abstract

The long-debated impact of right-to-work (RTW) laws took on more urgency with the passage of RTW in additional states in the twenty-first century. The impact of RTW on shareholder wealth of corporations located in four states is evaluated here: Oklahoma (2000), Indiana (2012), Michigan (2012), and Wisconsin (2015). Event study results show that RTW had a positive effect on shareholder wealth in these states, albeit an effect that was lower in Michigan than elsewhere. We argue that this is indirect evidence in support of research indicating that RTW hinders union organizing, raises profits, and reduces nonunion employee compensation.

Original language	English (US)
Pages (from-to)	219-246
Number of pages	28
Journal	Advances in Industrial and Labor Relations
Volume	25
DOIs	https://doi.org/10.1108/S0742-618620190000025011
State	Published - 2019

All Science Journal Classification (ASJC) codes

Industrial relations
Economics, Econometrics and Finance (miscellaneous)
Political Science and International Relations
Organizational Behavior and Human Resource Management

Keywords

Anti-union
Legal impact
RTW
Right-to-work
Shareholder wealth
Union organizing

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10.1108/S0742-618620190000025011

Cite this

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abstract = "The long-debated impact of right-to-work (RTW) laws took on more urgency with the passage of RTW in additional states in the twenty-first century. The impact of RTW on shareholder wealth of corporations located in four states is evaluated here: Oklahoma (2000), Indiana (2012), Michigan (2012), and Wisconsin (2015). Event study results show that RTW had a positive effect on shareholder wealth in these states, albeit an effect that was lower in Michigan than elsewhere. We argue that this is indirect evidence in support of research indicating that RTW hinders union organizing, raises profits, and reduces nonunion employee compensation.",

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,NEW EVIDENCE FROM THE STOCK MARKET ON RIGHT-TO-WORK LAWS

Abstract

All Science Journal Classification (ASJC) codes

Keywords

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