Date: September 12, 2018
Author: Frank Manzo IV
Chicago: A trio of new research studies shows that more people are joining unions in Minnesota and that wages in the Gopher State are growing faster than the neighboring states of Illinois and Wisconsin, as well as in the rest of the United States.
Produced by the Midwest Economic Policy Institute with researchers from the University of Illinois at Urbana-Champaign, University of Minnesota, University of Wisconsin-Madison, and University of California-Irvine, the annual State of the Unions Research series profiles unionization rates and hourly wages in Minnesota, Illinois, and Wisconsin.
Based on data from the U.S. Department of Labor and U.S. Census Bureau, the studies offer a comparative window into the economic effects of different state-level approaches to labor and economic policy.
“While the rise of right-to-work laws and other national economic trends are no doubt impacting unionization and wage growth, differences in state-level policymaking can either accelerate or blunt these broader trends,” said Midwest Economic Policy Institute Policy Director Frank Manzo IV. “The data shows that Wisconsin’s model has produced lower wages and slower wage growth, while Minnesota’s has had the opposite effect.”
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The reports highlight economic data over the last decade, at a time when Wisconsin opted for more austerity and weakened labor standards- specifically placing limits on collective bargaining (Act 10), repealing prevailing wage, and enacting a so-called “right-to-work” law.
Despite a budget crisis and efforts by its Governor to pursue an agenda similar to Wisconsin’s, the authors note that Illinois has largely maintained a status quo, augmented by the City of Chicago’s decision to raise its minimum wage.
(Report: State of the Unions – Minnesota)