The 'right-to-work' pay gap

Key takeaways

Right-to-work laws are associated with lower union membership and lower wages, especially for minority and female workers.
States without right-to-work laws tend to have policies that support higher wages, such as higher minimum wages and pay transparency measures.
Labor market participation is decreasing, with some workers leaving the workforce due to various circumstances, including health issues.
Personal stories like Brian O’Connell’s highlight the importance of resilience and finding new purpose after career setbacks, especially in retirement.

Summary

Impact of Right-to-Work Laws on Wages and Union Membership

This section discusses the influence of state laws, particularly right-to-work statutes, on union membership rates and wages across the U.S. It highlights that only about 10% of workers were unionized in 2025, with significant disparities between states with and without right-to-work laws. The laws prevent workers from being required to join or contribute to union costs, making unionization efforts harder in those states. The economic consequences include lower union membership and wage gaps, especially affecting women, Black, and Hispanic workers. Conversely, non-right-to-work states tend to have higher minimum wages, pay transparency, and restrictions on non-compete agreements, contributing to higher wages.

The Broader Economic Effects and Policy Factors

This section explores how other policy factors in non-right-to-work states, such as higher minimum wages and stronger labor protections, contribute to better wages. It emphasizes that these laws are just one part of a larger ecosystem influencing economic wellbeing. The overall message is that state policies significantly shape the working conditions and income levels of residents.

Labor Market Participation and Personal Stories - 'Clocked Out' Series

This part introduces the labor force participation rate, which has recently dropped to pandemic lows, partly due to workers choosing or being forced to leave the workforce. It also features personal storytelling through the 'Clocked Out' series, including the story of Brian O’Connell, a retired Air Force aviator who, after losing his sight to glaucoma, found a new purpose by returning to teach at a VA rehabilitation program. His story exemplifies resilience and adapting to life's challenges after retirement.

Show notes

People living in “right-to-work” states make nearly 7% less, on average, than those living in states without them, according to the Economic Policy Institute. That gap has doubled in the past decade. This morning, we look at how state laws impact union membership and wages, more broadly. Also, the story of a veteran who turned to a federal program after losing his sight to glaucoma.

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