A "Union Shop" clause in a contract requires every worker to join the union soon after starting to work for the company. In 1973 there were 31 states that permitted the Union Shop, and 19 states that had earlier passed "Right-to-Work" laws that outlawed the Union Shop and certain other practices. A random sample of 5 states from each group showed the following average hourly wage within the state:
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States with Union Shop
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States with Right-to-Work
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4.00
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3.50
|
|
3.10
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3.60
|
|
3.60
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3.20
|
|
4.20
|
3.90
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|
4.60
|
2.80
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On the basis of these figures, a friend claims that the Right-to-Work laws are costing the average worker 50 cents per hour. Do you think this claim is justified? Assume a 5% level of significance.