Nationally, 13.5 percent of the workforce belongs to labor unions. In 24 states the level of unionism is above average (High Union) and in 26 states it is below average (Low Union). In the High Union States average weekly earnings are $634, while in the Low Union states the average was $574, a difference of $60 or 10.4 percent.

To accurately compare earnings among states, however, differences in the cost of living must be taken into account. After all, if the cost of living is greater in a highly unionized state like New York than it is in a less unionized state like North Carolina an employee making less money might actually have a higher standard of living.

The American Federation of Teachers, AFL-CIO, publishes a state-by-state cost of living comparison that is generally regarded as accurate.

Since the level of state and local taxes destroys even the small earnings advantage that might be attributed to a high level of unionism, it is worth asking whether there is a correlation between high levels of unionism and high levels of taxation.

The rate of state and local taxes as a percent of income ranges from 13.3 to 6.8. Twenty-four states have rates above 10 percent (High Tax), while 26 states have rates of 10 percent or less (Low Tax). The average level of state and local taxes in the High Union states is 10.6 percent, compared to 9.8 percent in the Low Union states. Looking at it another way, the average level of unionism in the High Tax states is 14.6 percent compared to an average level of unionism in the Low Tax states of 10.2 percent. So there is an apparent correlation between a high level of unionism and higher taxes.

But, because the difference between the level of taxation in the lowest High Tax state and the highest Low Tax state is very slight, this may not be an accurate reflection of union influence. Comparing the level of unionism in the top ten High Tax states and the bottom ten Low Tax states gives a clearer indication. In the top ten High Tax states the average level of unionism is 16.2 percent compared to 10.2 percent in the bottom ten Low Tax states.

*Source: Tax Foundation

Yet, another way to examine whether high levels of unionism have an influence on higher levels of taxation is to look at the voting record on taxing and spending of state delegations to Congress. The National Taxpayers Union (NTU) complies the most complete and sophisticated systems for analyzing Congressional voting records on tax and spending issues. It awards letter grades for each member of Congress that can be translated to percentage grades for the purpose of comparing the records of state delegations.

A high grade reflects a voting record generally favoring lower taxes and spending, while a low grade indicates a voting record favoring higher taxes and spending. The available information about levels of unionism doesn't extend to the Congressional District level and in some states levels of unionism differ greatly among Congressional Districts. That makes the scores of the state delegations to the U.S. Senate the most reliable indicator of union influence on these scores.

*Source: Tax Foundation

The average NTU grade for Senate delegations is a C-. The average NTU grade for U.S. Senators from High Union states is a D compared to an average grade for Senators from Low Union states of C+. So there appears to be a correlation between unionism and a higher propensity to tax and spend.

Another way to look at this is to compare the level of unionism in the states with High NTU grades to the level of unionism in states with Low NTU grades. There are 21 states with above average grades (High NTU) and 29 states with below average grades (Low NTU). The average level of unionism in the High NTU states is 10.7 percent, while the average level of unionism in the Low NTU states is 13.5 percent.

Since there is only a slight difference between the grade of the lowest High NTU state and grade of the highest Low NTU state, comparing the level of unionism in the highest and lowest ten states in each category gives a better view of the influence on unionism on these grades. In the Top 10 High NTU states the average level of unionism is 8.5 percent compared to 15.5 percent in the Lowest 10 Low NTU states.

Clearly, the level of unionism has a pronounced influence on how members of the U.S. Senate vote on taxing and spending issues and the more unionized a state the more likely they are to vote for higher taxes and spending.

Conclusion:

There is a difference between union and nonunion earnings but that difference is collapsing. The union wage differential is influenced by geography, occupation, the size and type of employer and unionism. The extent to which each of these factors influences the difference is unclear but it is clear that union representation has very little to do with it.

There is no apparent relationship between high levels of unionism and generally higher earnings. Once adjusted for the cost of living and taxation, real earnings in states with low levels of unionism are actually higher than in states with high levels. There is a strong relationship between high levels of unionism and higher levels of taxation.

The relationship between high taxes and high levels of unionism is more than likely due to the fact that, despite their decline in membership, unions are a very powerful political influence and they are generally advocates of big government.