Right-to-Work is Right for Oregon: A Comprehensive Analysis of the Economics Benefits from Enacting a Right-to-Work Law

Cascade Policy Institute, February 2012

22 Pages Posted: 2 Feb 2012

See all articles by Eric Fruits

Eric Fruits

International Center for Law & Economics (ICLE); Portland State University; Economics International Corp.

Randall J. Pozdena

QuantEcon, Inc.

Date Written: February 1, 2012

Abstract

This report measures the impacts of right-to-work laws on the economy, measured by employment growth, income growth, and migration. Looking backward, it examines what would have happened to state employment and income growth had Oregon enacted right-to-work legislation in 1985, the same year as neighboring Idaho. Looking forward, the report forecasts future employment and income growth if Oregon enacts right-to-work legislation going into effect in 2012.

Looking backward, the analysis finds if the state had enacted right-to-work legislation in 1985, Oregon’s employment in 2010 would have been approximately 14 percent higher (233,000 more jobs), Oregon’s 2010 personal income would have been 10 percent higher ($14.6 billion), and Oregon’s wage and salary income would have been 13 percent higher ($9.7 billion).

Looking forward, if Oregon enacts right-to-work legislation in 2012, the empirical results indicate that the state would see a permanent boost in employment and income growth. After five years, in 2016, Oregon would have 50,000 more people working as a right-to-work state. By 2021, 110,000 more people would be working in Oregon. By 2016, the state’s personal income would be $4.1 billion higher and wage and salary income would be $2.7 billion higher. By 2021, the state’s personal income would be $10.8 billion higher and wage and salary income would be $7.0 billion higher.

Keywords: employment growth, income growth, right-to-work

JEL Classification: E24, J21, J6, J58, J38

Suggested Citation

Fruits, Eric and Pozdena, Randall J., Right-to-Work is Right for Oregon: A Comprehensive Analysis of the Economics Benefits from Enacting a Right-to-Work Law (February 1, 2012). Cascade Policy Institute, February 2012, Available at SSRN: https://ssrn.com/abstract=1997391

Eric Fruits (Contact Author)

International Center for Law & Economics (ICLE) ( email )

2117 NE Oregon St.
Suite 501
Portland, OR 97232
United States

HOME PAGE: http://laweconcenter.org/

Portland State University ( email )

United States

HOME PAGE: http://web.pdx.edu/~fruits/

Economics International Corp. ( email )

4318 NE Royal Court
Portland, OR 97213
United States
503-928-6635 (Phone)

HOME PAGE: http://www.econinternational.com/

Randall J. Pozdena

QuantEcon, Inc. ( email )

P.O. Box 280
Manzanita, OR 97130
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
36
Abstract Views
549
PlumX Metrics