Right-to-Work Laws and Discrimination Against Older Workers: Evidence from a Field Experiment

Abstract

Much research shows widespread hiring discrimination on the basis of various characteristics. Yet, little is known about how government policies may prevent or increase discrimination. This paper develops a framework for understanding how right-to-work laws affect age discrimination in the labor market. Our model predicts that by weakening unions’ ability to negotiate wages and benefits above competitive levels, these laws allow older workers to accept lower compensation, making them more attractive to employers. Using data from a resumé field experiment, we find that right-to-work laws are associated with an approximately 30% reduction in age discrimination against older women.

Keywords: Discrimination, Right-to-Work Laws, Field Experiments, Public Policy

JEL Classification: J71, J78, C93, D22