Right-to-Work Laws and Firm Productivity in U.S. Firms

IF 1.5 Q2 INDUSTRIAL RELATIONS & LABOR
Mohamed Shaker Ahmed, Charilaos Mertzanis
{"title":"Right-to-Work Laws and Firm Productivity in U.S. Firms","authors":"Mohamed Shaker Ahmed,&nbsp;Charilaos Mertzanis","doi":"10.1111/irj.12468","DOIUrl":null,"url":null,"abstract":"<div>\n \n <p>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.</p>\n </div>","PeriodicalId":46619,"journal":{"name":"INDUSTRIAL RELATIONS JOURNAL","volume":"56 4","pages":"301-321"},"PeriodicalIF":1.5000,"publicationDate":"2025-04-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"INDUSTRIAL RELATIONS JOURNAL","FirstCategoryId":"1085","ListUrlMain":"https://onlinelibrary.wiley.com/doi/10.1111/irj.12468","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q2","JCRName":"INDUSTRIAL RELATIONS & LABOR","Score":null,"Total":0}
引用次数: 0

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.

美国企业的工作权利法和企业生产率
我们研究了工作权(RTW)法律对美国企业全要素生产率(TFP)的影响。我们发现,降低工会议价能力的RTW法律与企业层面全要素生产率的下降有关,特别是对于采用创新驱动战略或面临财务约束的企业。这些影响在各种模型和内生性处理中都很强大,强调了评估劳动力政策影响的内部和外部因素的重要性。削弱劳工保护和限制工会影响可能会降低工人参与度,削弱议价能力,最终阻碍生产率。该研究通过实证将RTW采用与TFP联系起来,并扩大了对劳动力市场政策作为生产率决定因素的讨论,从而为文献做出了贡献。它还强调了商业战略、市场活力和财务约束在减轻全球旅行法对公司的影响方面的作用。该研究为政策制定者和商界领袖提供了见解,强调需要制定平衡的劳动力市场政策,既支持企业灵活性,又支持员工参与度,以维持生产率。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
求助全文
约1分钟内获得全文 求助全文
来源期刊
INDUSTRIAL RELATIONS JOURNAL
INDUSTRIAL RELATIONS JOURNAL INDUSTRIAL RELATIONS & LABOR-
CiteScore
2.50
自引率
14.30%
发文量
33
×
引用
GB/T 7714-2015
复制
MLA
复制
APA
复制
导出至
BibTeX EndNote RefMan NoteFirst NoteExpress
×
提示
您的信息不完整,为了账户安全,请先补充。
现在去补充
×
提示
您因"违规操作"
具体请查看互助需知
我知道了
×
提示
确定
请完成安全验证×
copy
已复制链接
快去分享给好友吧!
我知道了
右上角分享
点击右上角分享
0
联系我们:info@booksci.cn Book学术提供免费学术资源搜索服务,方便国内外学者检索中英文文献。致力于提供最便捷和优质的服务体验。 Copyright © 2023 布克学术 All rights reserved.
京ICP备2023020795号-1
ghs 京公网安备 11010802042870号
Book学术文献互助
Book学术文献互助群
群 号:604180095
Book学术官方微信