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Study

The Effects of Michigan’s Prevailing Wage Law

By Paul Kersey, published on Aug. 27, 2007

Michigan’s prevailing wage law adds unnecessary costs to construction projects at taxpayers’ expense.

Contents

Prevailing Wage cover
  • Foreword
  • Executive Summary
  • Introduction
  • The Michigan Prevailing Wage Law
    • Coverage
    • How Wage Mandates Are Determined
  • Prevailing Wage Laws in Other States
  • The Federal Davis-Bacon Act
  • Rationales for Preserving the Prevailing Wage
    • The Social Justice Rationale
    • The “High-Wage, High-Skill” Rationale
  • The Effects of Michigan’s Prevailing Wage Law
    • The Decline of the Union Movement in Michigan
    • Prevailing Wage and Construction Industry Compensation
    • Another Perspective: Prevailing Wages and the Larger Work Force
    • Prevailing Wage, Productivity and Cost-Effectiveness
    • Workplace Safety and Quality of Construction
    • Difficulties for Bidders
    • Overall Cost of Construction
  • Experience of Michigan and Other Jurisdictions
  • The Overall Cost of the Prevailing Wage for Michigan Taxpayers
  • Solutions to the Prevailing Wage Problem
    • Repeal
    • Alternatives to Repeal
    • Exempt Public School Construction
    • Temporary Suspension
    • Change How the State Calculates Prevailing Wages
    • Revise the Prevailing Wage Law To Focus on Low-Wage Workers
  • Conclusion
  • Appendix A
  • Appendix B
  • Acknowledgments
  • About the Author
  • Endnotes
SKU: S2007-09

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