Last Updated on January 8, 2026 by Chicago Policy Review Staff
Right-to-Work (RTW) laws, which prohibit mandatory union membership as a condition of employment, have been a focal point of policy debates across the United States. Over the past decade, several Midwest states, including Michigan, Indiana, and Wisconsin, have adopted RTW laws, shifting the labor landscape in a region historically characterized by strong union activity. The non-RTW states in the Midwest include Illinois, Ohio and Minnesota. For low-wage workers, a demographic often reliant on collective bargaining for better pay and workplace protections, the consequences of these laws have been particularly significant.
RTW laws date back to the mid-20th century, introduced as a response to the growing influence of labor unions. Proponents of these laws argue they protect workers’ freedom by ensuring that union membership and dues payment are voluntary. They also claim that RTW laws attract businesses by lowering labor costs, thereby fostering economic growth and job creation.
Critics, however, contend that these laws weaken unions, reducing their effectiveness at negotiating higher wages and better benefits. For low-wage workers, many of whom already live on the economic margins, this could mean diminished bargaining power and poorer labor standards. The Midwest’s adoption of RTW laws marked a significant policy shift, raising questions about their implications for workers in the region’s manufacturing, retail, and service sectors.
Impacts on Employment and Job Creation
One of the primary arguments for RTW laws is their potential to create jobs by attracting businesses seeking lower labor costs. In the Midwest, research has found an increase in business investment following the adoption of these laws. These trends are particularly evident in manufacturing, where companies often view reduced union influence as an advantage.
However, the correlation between RTW laws and job creation is far from conclusive. Critics argue that while businesses may relocate to RTW states, the quality of jobs they bring often falls short. Many positions offer low wages, limited benefits, and minimal job security; conditions that disproportionately affect low-wage workers.
Figure 1: Hourly Median Wage in RTW vs Non-RTW States
Figure 1 illustrates the stark contrast in hourly median wages between RTW and non-RTW states. While RTW states may attract businesses, the wage disparity highlights the challenges faced by low-wage workers in these regions. For example, in Indiana, a state with RTW laws, the median wage in 2023 was $21.86/hour compared to $23.43/hour in Illinois, a non-RTW state.
Wages and Living Standards
Studies comparing RTW and non-RTW states suggest that workers in RTW states, on average, earn less than their counterparts in states where union membership remains strong. An analysis of union membership trends in RTW vs. non-RTW states shows a clear correlation between reduced union density and increased income inequality. As union influence declines, low-wage workers bear the brunt of wage stagnation, exacerbating economic vulnerability. For low-wage workers, even small reductions in earnings can exacerbate economic vulnerability and limit access to essential resources. Research, such as The Right to Work and American Inequality, highlights how RTW laws may contribute to growing wage disparities and economic inequality, emphasizing the uneven distribution of economic growth benefits.
Union Membership and Worker Protections
Unions have historically played a pivotal role in advocating for low-wage workers, securing not only higher wages but also critical benefits such as health insurance, paid leave, and workplace safety measures. In Midwest states that have adopted RTW laws, union membership has declined significantly, eroding the bargaining power that once enabled these gains. For instance, RTW laws may also influence work conditions such as hours and schedules, as detailed in The Impact of Right-to-Work Laws on Long Hours and Work Schedules.
Figure 2: Union Membership Trends in the Midwest
This graph showcases the decline in union membership across Midwest states following the adoption of RTW laws. The reduction in union density underscores the diminishing collective strength of workers in these regions. Between 2013 and 2023, union membership in RTW states dropped by an average of 25%, compared to a 10% decline in non-RTW states. This decline reduces workers’ ability to collectively negotiate for better wages and benefits.
Without the collective strength of unions, low-wage workers may find it harder to negotiate for benefits or challenge unfair labor practices. As a result, RTW laws could contribute to a widening gap in job quality between unionized and non-unionized workers.
While the immediate effects of RTW laws on wages and union membership are apparent, their long-term implications remain less clear. Factors such as broader economic trends, shifts in industry practices, and state-specific conditions make it difficult to isolate the impact of RTW laws. For low-wage workers, these complexities underscore the need for nuanced evaluations that consider both short-term outcomes and potential future trajectories.
Understanding the full impact of RTW laws requires ongoing research, particularly into their long-term effects on economic inequality and labor dynamics. As debates over RTW laws continue, it is essential to move beyond polarized arguments and focus on their tangible outcomes for the workers most affected. For policymakers, researchers, and advocates alike, the experiences of low-wage workers in the Midwest offer valuable insights into the broader implications of RTW laws in the U.S. labor market.