My state (KY) just went “right to work”. What I find fascinating is that these laws actually seem to INCREASE wages. I don’t know the dynamic that causes that, though.
As did mine (MO) yesterday when Gov. Greitens signed the right to work bill into law. Of the eight states that border Missouri, only Illinois is non right to work.
> higher wages ... dynamic that causes that
Reminds me of the effect that taxes and regulations have on economic activity. They suppress it. When a union sticks itself in between employees and business, the business is demotivated. Also, businesses would often rather compete with the union than play ball with it. To compete, one has to exceed the other guy’s (union’s) offer.
A company does not have to pay more than union wages in a union state.
They are free to pay more to good workers in a right to work state and with real competition may actually do so.
If an employee doesn't have to pay union dues, that means that, even if wages stay flat, that's still more take-home pay for the employee.
Also, individual employees have more incentive to increase productivity to whatever level they're comfortable with, without being influenced by union leaders.
Thus, since productivity is probably higher in non-union environment, that means employers can afford to pay a higher wage.
So it's logical to me that "right to work" states could result in higher wages...