Fortin, Nicole Marie; Lemieux, Thomas; Lloyd, Neil - National Bureau of Economic Research - 2022
This paper uses two complementary approaches to estimate the effect of right-to-work (RTW) laws on wages and … indicate that RTW laws lower wages and unionization rates. Under the assumption that RTW laws only affect wages by lowering the … unionization rate, RTW can be used as an instrumental variable (IV) to estimate the causal effect of unions on wages. In our …