by Michael Hicks, Michael LaFaive
Mackinac Center for Public Policy
August 28, 2013
Mackinac Center Report
Michigan’s new right-to-work law has reignited several debates about whether or not such policies are beneficial to states that adopt them. The results of this study show that from 1947 through 2011, right-to-work laws increased average real personal income growth by 0.8 percentage points and average annual population growth by 0.5 percentage points in right-to-work states. From 1970 through 2011, these laws also boosted average annual employment growth by 0.8 percentage points. All of these findings are statistically significant. These results suggest that right-to-work laws have a positive and sometimes very positive impact on the economic well-being of states and their residents. Indeed, the study’s findings show that right-to-work laws, on average, cause a one-time, permanent increase in the rate of economic growth in states.