4. To assess the effect of state right to work laws on union membership (which do not require membership in unions as a precondition for employment), the following regression results were obtained from the data for 50 states in the United States for 1982: PVT, = 19.8066 – 9.3917 RTW, t= (17.0352) (-5.1086) R = 0.3522 where PVT = percentage of private sector employees in unions in 1982 RTW = 1 if right-to-work law exists, 0 otherwise (in 1982, 20 states had right- to-work laws). %3D A priori, what is the expected relationship between PVT and RTW? Do the regression results support this expected relationship? Interpret the regression results. What was the average percent of private sector employees in unions in the states that did not have the right-to-work laws?

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4. To assess the effect of state right to work laws on union membership (which do not
require membership in unions as a precondition for employment), the following
regression results were obtained from the data for 50 states in the United States for
1982:
PVT, = 19.8066 – 9.3917 RTW,
t= (17.0352) (-5.1086)
R = 0.3522
where PVT = percentage of private sector employees in unions in 1982
RTW = 1 if right-to-work law exists, 0 otherwise (in 1982, 20 states had right-
to-work laws).
%3D
A priori, what is the expected relationship between PVT and RTW?
Do the regression results support this expected relationship?
Interpret the regression results.
What was the average percent of private sector employees in unions in the states that
did not have the right-to-work laws?
Transcribed Image Text:4. To assess the effect of state right to work laws on union membership (which do not require membership in unions as a precondition for employment), the following regression results were obtained from the data for 50 states in the United States for 1982: PVT, = 19.8066 – 9.3917 RTW, t= (17.0352) (-5.1086) R = 0.3522 where PVT = percentage of private sector employees in unions in 1982 RTW = 1 if right-to-work law exists, 0 otherwise (in 1982, 20 states had right- to-work laws). %3D A priori, what is the expected relationship between PVT and RTW? Do the regression results support this expected relationship? Interpret the regression results. What was the average percent of private sector employees in unions in the states that did not have the right-to-work laws?
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