Economics of Prevailing Wage Laws

Prevailing wage laws affecting the construction industry in the United States exist at the Federal and State levels. These laws require that construction workers employed by contractors on government works be paid at least the wage rates and fringe benefits 'prevailing' for similar work where government contract work is performed. The federal law (Davis-Bacon Act) was passed in 1931. By 1969 four fifth of States had enacted prevailing wage legislation. In the 1970s, facing fiscal crises, States considered repealing their laws in an effort to reduce construction costs, and since 1979 nine States have repealed their laws. These repeals at State level along with unsuccessful attempts to repeal the Davis-Bacon Act have pushed prevailing wages to the forefront of public policy and controversy. This book, for the first time, brings together scholarly research in the economics of prevailing wages placed in historical and institutional context.'For over 130 years, the setting of decent wage floors has been a crucial policy tool for promoting well-being among working people in the United States. The Economics of Prevailing Wage Laws analyses with both rigor and breadth of understanding one of the most important wage-floor policy interventions. The contributors to this volume provide cogent and persuasive answers to many major questions.' Professor Robert Pollin, University of Massachusetts-Amherst, USA 'This book offers an informed, careful, and rigorous look at a wide variety of the economic effects of prevailing wage policies on labor markets and public policy outcomes and offers a measured account of their impacts. The Economics of Prevailing Wage Laws should be read by all of those academics and practitioners interested in the past, present and most importantly future of this important area of labor market regulation.' David Weil, Boston University School of Management, and Harvard University, USA