Right-to-work Laws and Manufacturing Employment: The Importance of Spatial Dependence
Charlene Kalenkoski and
Donald J. Lacombe ()
Additional contact information
Donald J. Lacombe: Department of Economics, Ohio University
Southern Economic Journal, 2006, vol. 73, issue 2, 402–418
Using 2000 decennial census data, we estimate the relationships between right-to-work (RTW) laws and employment in manufacturing and other industries. Estimates that do not account for geographically correlated omitted factors dramatically overstate the positive relationship between RTW legislation and manufacturing employment. We estimate that RTW legislation is associated with an increase in manufacturing's share of private wage and salary employment of 2.12%, an estimate almost 30% lower than the estimate that does not control for these spatially correlated omitted factors. Results for other industries indicate that RTW legislation is negatively associated with employment shares in the agriculture, forestry, fishing and hunting, and mining industries and some service industries, but is positively associated with employment shares in the information and professional, scientific, management, administrative, and waste management services industries. Improperly controlling for geographic factors can lead to incorrect inferences and misinform policy.
JEL-codes: C21 J58 (search for similar items in EconPapers)
References: Add references at CitEc
Citations View citations in EconPapers (4) Track citations by RSS feed
There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:sej:ancoec:v:73:2:y:2006:p:402-418
Access Statistics for this article
Southern Economic Journal is currently edited by Laura Razzolini
More articles in Southern Economic Journal from Southern Economic Association Contact information at EDIRC.
Series data maintained by Laura Razzolini ().