The Effect of State Policies on the Location of Industry: Evidence from State Borders

Public
Creator Series Issue number
  • 205
Date created
  • 1996-09
Abstract
  • This paper provides new evidence that state policies play a role in the location of industry. The paper classifies a state as pro-business or anti-business depending upon whether or not the state has a right-to-work law. The paper finds that, on average, there is a large abrupt increase in manufacturing activity when crossing a state border from an anti-business state into a pro-business state.

Subject (JEL) Related information Corporate Author
  • Federal Reserve Bank of Minneapolis. Research Department
Publisher
  • Federal Reserve Bank of Minneapolis
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