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Right to Work and the Michigan Economy Presented to: Mid-Michigan LERA October 8, 2013

Right to Work and the Michigan Economy Presented to: Mid-Michigan LERA October 8, 2013. Charles L. Ballard Department of Economics Michigan State University East Lansing, MI ballard@msu.edu.

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Right to Work and the Michigan Economy Presented to: Mid-Michigan LERA October 8, 2013

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  1. Right to Work and the Michigan EconomyPresented to:Mid-Michigan LERAOctober 8, 2013 Charles L. Ballard Department of Economics Michigan State University East Lansing, MI ballard@msu.edu

  2. First, some facts about the percentage of workers who are union members in the United States (data for 2011):

  3. % of Private % of Public % of Total StateRankEmployeesEmployeesEmployees New York 1 13.5 72.2 24.1 Alaska 2 11.0 53.2 22.1 Hawaii 3 14.1 50.7 21.5 Washington 4 11.1 52.4 18.9 Michigan 5 11.9 52.0 17.5 California 7 9.0 56.9 17.1 Illinois 10 10.6 52.0 16.2 Ohio 17 8.6 42.6 13.4 Indiana 23 8.9 28.3 11.2 Florida 37 2.8 26.4 6.3 Texas 41 3.0 17.1 5.2 Mississippi 44 3.4 10.4 5.0 N. Carolina 51 1.6 9.1 2.9

  4. Across the country, the rates of unionization have fallen over the years.

  5. Percent of Workers Who Are Union Members, for Selected States, 1964 and 2011 19642011Change New York 35.5 24.1 -11.4 Alaska 39.7 22.1 -17.6 Washington 44.5 18.9 -25.6 Michigan 44.817.5 -27.3 California 33.0 17.1 -15.9 Illinois 35.6 16.2 -19.4 Ohio 37.6 13.4 -24.2 United States 29.3 11.9 -17.4 Indiana 40.9 11.2 -29.7 Florida 14.0 6.3 - 7.7 Texas 13.5 5.2 - 8.3 N. Carolina 8.4 2.9 - 5.5

  6. In Michigan, as in many other parts of the country, the union losses of recent decades have been relatively larger in the private sector.

  7. Union Members as Percent of Workers in Michigan, 1983 and 2011 19832011Change Private Sector 25.3 11.9 - 13.4 Manufacturing 46.2 20.1 - 26.1 Public Sector 56.8 52.0 - 4.8

  8. Manufacturing’s Share of the Economy Has Shrunk Dramatically

  9. Tax Effort Has Reduced Substantially

  10. My Assessment:Right to Work is unlikely to make much difference. For better or worse, the strength of labor unions has already diminished greatly.

  11. What Does the Michigan Public Think?State of the State Survey Round 64 1,013 Interviews Completed January 14, 2013 – March 4, 2013

  12. 42.7% of Michigan Residents Said They Believe the Right-to-Work Law Will Help the Economy. • 41% Said It Will Hurt. • That’s a Statistical Tie.

  13. Views of Michigan Residents by Race and Sex

  14. Views of Michigan Residents by Political Party

  15. Views of Michigan Residents by Support for Gov. Snyder

  16. Views of Michigan Residents by Ideology

  17. Advocates of right-to-work laws say they will bring prosperity.At best, the evidence for this is mixed.

  18. Per-Capita Personal Income, 2011: • Right-to-Work States: $38,046 • Non-RTW States: $44,515

  19. Many of the states with the highest incomes have high levels of educational attainment.

  20. This slide is brought to you by the letter “M”: Education IncomeState Rank 2010Rank 2010Massachusetts 1 2Minnesota 10 10Michigan 34 39Mississippi 49 50

  21. Income inequality in the United States has increased to levels not seen since 100 years ago. This is because: • The supply of highly skilled workers has increased less than the demand. • Deregulation of financial services. 3. Weaker labor unions. 4. Less progressive taxation.

  22. A song to thee, fair State of mine, Michigan, my Michigan. But greater song than this is thine, Michigan, my Michigan. The whisper of the forest tree, The thunder of the inland sea, Unite in one grand symphony Of Michigan, my Michigan. Michigan, My Michigan

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