The role of firm age in the impact of right-to-work laws on job creation

Israt Jahan () and Amir Tayebi ()
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Israt Jahan: University of Wisconsin- La Crosse
Amir Tayebi: University of Wisconsin- La Crosse

Economics Bulletin, 2025, vol. 45, issue 3, 1467 - 1474

Abstract: In this paper, we investigate the effect of right-to-work (RTW) laws on the share of jobs among different firm age groups in Indiana and Wisconsin. Using synthetic control methods, we find that RTW laws negatively impact younger firms in Indiana while benefiting older firms. In contrast, RTW laws have no significant impact on the share of jobs in Wisconsin. These findings show that RTW laws affect businesses in different ways, depending on the industry and union presence. Policymakers should consider firms' age and local economic conditions when making decisions about these laws.

Keywords: Right-to-Work (RTW) Law; firm age; synthetic control; job creation (search for similar items in EconPapers)
JEL-codes: J5 L2 (search for similar items in EconPapers)
Date: 2025-09-30
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