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This paper provides new evidence that state policies play a role in the location of industry. The paper classifies a state as probusiness if it has a right‐to‐work law and antibusiness if it does not. The paper finds that, on average, there is a large, abrupt increase in manufacturing activity when one crosses a state border from an antibusiness state into a probusiness state.
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Thomas J. Holmes (1998) studied this question.
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