Michigan's Prevailing Wage Law and Its Effects on Government Spending and Construction Employment

Click for audio Prevailing Wage Law Wastes Taxpayers' Money

Michigan's Prevailing Wage Act of 1965 requires contractors to pay artificially high union wages on all state-financed projects from road repair to school construction. This study examined the performance of Michigan's economy for two 30-month periods prior to and during the law's suspension by a federal district court and found that taxpayers could save hundreds of millions of dollars annually if the law were permanently repealed. The study also reveals prevailing wage laws' negative effect on job creation in the construction industry and their discriminatory impact on black and other minority workers. 21 pages.


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Construction Costs and Employment Rates Are Analyzed for Recent Periods with and without a Prevailing Wage Law.

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