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Study: Right-to-work laws hike wages

LEXINGTON, Ky., Jan. 25 (UPI) -- A study by the former chief economist of Ernst & Young says a right-to-work law in Kentucky would attract 900 manufacturing jobs.

The analysis by Dr. William Wilson also found that letting people take factory jobs without paying union dues would generate $6.4 million in new tax revenue annually, the Lexington (Ky.) Union-Leader reported Wednesday.

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Citing the report, Gov. Ernie Fletcher said giving workers a choice about paying union dues is "imperative" if Kentucky wants to compete with other Southern states for new jobs.

He said that 30 percent of companies looking for a new location refuse to consider locating in Kentucky because it is not one of 22 "right-to-work" states, states where workers have a choice about paying union dues.

Wilson's analysis estimates that enacting a right-to-work law would create 3,580 manufacturing jobs in Kentucky by 2010. In turn, those jobs would spur nearly 6,000 other new jobs, $428 million in personal income and $30.3 million in annual tax revenue.

The study finds that families living in right-to-work states have $2,852 more in after-tax purchasing power each year.

Union officials dismissed the study as flawed.

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