 Right‐to‐Work Laws and Firm Productivity in U.S. FirmsMohamed Shaker Ahmed and Charilaos Mertzanis Industrial Relations Journal, 2025, vol. 56, issue 4, 301-321 Abstract: We investigate the impact of Right‐to‐Work (RTW) laws on firm‐level total factor productivity (TFP) in U.S. firms. We find that RTW laws, which reduce union bargaining power, are associated with a decrease in firm‐level TFP, particularly for firms adopting innovation‐driven strategies or facing financial constraints. These effects are robust across various models and endogeneity treatments, emphasising the importance of internal and external factors in assessing labour policy impacts. Weakening labour protection and limiting union influence may reduce worker engagement, weaken bargaining power, and ultimately hinder productivity. The study contributes to the literature by empirically linking RTW adoption with TFP and expanding the discussion on labour market policies as determinants of productivity. It also highlights the roles of business strategy, market dynamism, and financial constraints in mitigating the corporate effects of RTW laws. The research provides insights for policymakers and business leaders, emphasising the need for balanced labour market policies that support both corporate flexibility and worker engagement to sustain productivity. Date: 2025 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:bla:indrel:v:56:y:2025:i:4:p:301-321 Ordering information: This journal article can be ordered from Access Statistics for this article Industrial Relations Journal is currently edited by Peter Nolan More articles in Industrial Relations Journal from Wiley Blackwell |
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