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Right‐to‐Work Laws and Geographic Differences in Living Costs: An Analysis of Effects of the ‘Union Shop’ Ban for the Years 1974, 1976, and 1978

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  • Richard J. Cebula

Abstract

. The existence in a geographic area of right‐to‐work laws prohibiting the union shop tends to generate a labor‐market environment with less union power and thus less labor‐market pressure to elevate labor costs. To the extent that right‐to‐work legislation leads to lower labor costs and hence to lower unit production costs, there is a tendency for the overall cost of living in the area to be lower. Using ordinary least squares, this paper examines this hypothesis for the years 1974, 1976, and 1978 for some ]8 metropolitan areas in the United States. In a variety of different empirical models, this study generates very strong factual support for this right‐to‐work law/living‐cost relationship.

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  • Richard J. Cebula, 1983. "Right‐to‐Work Laws and Geographic Differences in Living Costs: An Analysis of Effects of the ‘Union Shop’ Ban for the Years 1974, 1976, and 1978," American Journal of Economics and Sociology, Wiley Blackwell, vol. 42(3), pages 329-340, July.
    • Handle: RePEc:bla:ajecsc:v:42:y:1983:i:3:p:329-340
    DOI: 10.1111/j.1536-7150.1983.tb01718.x
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    References listed on IDEAS

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    1. D. A. West & J. R. Hamilton & R. A. Loomis, 1976. "A Conceptual Framework for Guiding Policy-Related Research on Migration," Land Economics, University of Wisconsin Press, vol. 52(1), pages 66-76.
    2. Cebula, Richard, 1978. "The Determinants of Human Migration," MPRA Paper 58401, University Library of Munich, Germany.
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    More about this item

    JEL classification:

    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy

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