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Union-friendly states enjoy higher economic growth, individual earnings

Date:
March 23, 2021
Source:
Cornell University
Summary:
New research shows that state laws designed to hinder union activity and indulge corporate entities do not enhance economic productivity.
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New research from Mildred Warner, professor of city and regional planning at Cornell University, shows that state laws designed to hinder union activity and indulge corporate entities do not enhance economic productivity.

“我们发现,国家政策在哪里被有限公司rporate interests, this undermines inclusive growth," Warner said. "These interests see union and city power as a threat, which is why there are groups like the American Legislative Exchange Council, for example, focused on crafting state laws that erode labor protections and enhance corporate interests."

The paper, "Productivity Divergence: State Policy, Corporate Capture and Labor Power," written with co-author Yuanshuo Xu, assistant professor at Zhejiang University, Hangzhou, China, published Jan. 29 in theCambridge Journal of Regions, Economy and Society.

Warner and Xu assembled models for all counties throughout the U.S. and found labor returns (how much money people earn) are higher in states with higher unionization, and lower in states where legislation is more captured by corporate interests, she said.

"The anti-union political environment in the U.S. is longstanding," Warner said, "especially in the South, as reflected by right-to-work laws by constraining unions' ability to organize and collect dues."

Unionization rates in the U.S. have declined for decades. "Unionization is highest in the public sector, but this has been challenged by state and local austerity since the recession in 2008-09," Warner said.

Warner said that the role of the federal government is to provide funds to states and local governments to support critical public services, such as schools and roads. A good example of this is the recent $1.9 trillion COVID-19 economic stimulus package, signed into law March 11 by President Joe Biden.

"While the federal government can play a redistributive role, as with the recent COVID relief package, this is less likely in states that have more corporate influence in their legislative policymaking," said Warner. "This suggests the key to inclusive growth may rest with more balanced power between corporate and labor interests at the state level."

While the coalition between corporate interests and state legislatures is aimed at taming city-regions and reducing labor's collective bargaining power, Warner said, "In the new political economy of place, the corporate interests undermine the potential for inclusive economic growth."

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Story Source:

Materialsprovided byCornell University. Original written by Blaine Friedlander.注意:内容可能被编辑风格d length.


Journal Reference:

  1. Mildred E Warner, Yuanshuo Xu.Productivity divergence: state policy, corporate capture and labour power in the USA.Cambridge Journal of Regions, Economy and Society, 2021; 14 (1): 51 DOI:10.1093/cjres/rsaa040

Cite This Page:

Cornell University. "Union-friendly states enjoy higher economic growth, individual earnings." ScienceDaily. ScienceDaily, 23 March 2021. .
Cornell University. (2021, March 23). Union-friendly states enjoy higher economic growth, individual earnings.ScienceDaily. Retrieved July 20, 2023 from www.koonmotors.com/releases/2021/03/210323150819.htm
Cornell University. "Union-friendly states enjoy higher economic growth, individual earnings." ScienceDaily. www.koonmotors.com/releases/2021/03/210323150819.htm (accessed July 20, 2023).

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