By the numbers
Wisconsin’s ranks higher in labor market freedom than it has been at almost any point since the 1980s, according to the Fraser Institute’s Economic Freedom of North America Index.
Labor market freedom is defined as the extent to which workers and employers are allowed to interact and determine terms of employment without interference from excessive regulations. It is an important component of overall economic freedom and is measurable through an analysis of minimum wage laws, the share of the workforce employed by the government, and union density.
Wisconsin has made substantial progress in this area. The figure tracks Wisconsin’s rank among the fifty states and the District of Columbia on labor market freedom from 1981 to 2023.
Wisconsin ranked as low as 44th in 1984 and slowly oscillated through the 30s and 40s in the rankings until the state enacted a right-to-work labor market reform in 2015, causing Wisconsin to rocket into 13th place that same year. Since then, the Badger State has remained highly ranked in labor market freedom, reaching as high as 9th place in 2022. A right to work law simply means that employers may not require employees to join a union or pay dues as a condition of employment, and it is an important dimension of labor market freedom.
The chart also shows how Wisconsin’s regional competitiveness in this policy area has improved in recent years. Illinois has trended downward in the labor market freedom ranking, falling from 16th in the late 1980s to as low as 40th in 2011, and currently at 37th in 2023. Minnesota was trending upward in the rankings until 2012 when it reached 20th place but subsequently slid to as low as 38th by 2017. The state’s rank has only moderately recovered to 26th place.
In the first chapter of the Badger Institute’s 2026 Mandate for Madison, James Bohn demonstrates that the relative position of these three states in labor market freedom has been part of a bigger shift that has seen Wisconsin surpass its neighbors in overall economic freedom. Further, he provides evidence through analysis of border counties that this policy shift is promoting prosperity in the Badger State.
Wyatt Eichholz is a policy and legislative associate at the Badger Institute.
Any use or reproduction of Badger Institute articles or photographs requires prior written permission. To request permission to post articles on a website or print copies for distribution, contact Badger Institute Marketing Director Matt Erdman at matt@badgerinstitute.org.
