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Prevailing Wage is Poor Economic Policy

Senate Committee on Labor

… today for three reasons. Prevailing wage mandates make for poor … bill extends the idea of prevailing wage laws to solar and wind … demonstrates that conventional prevailing wage laws force Michigan taxpayers … from 2004 through 2019, prevailing wage laws raised the cost of … compelling evidence that prevailing wage laws reduce the share …

Dear population council: There’s a labor elephant in the room

Growing Michigan Together report avoids talking about Whitmer’s biggest accomplishment of 2023

… of RTW counties relative to their non-RTW neighbors.” It’s worth noting that lawmakers also reinstituted the state’s demonstrably expensive prevailing wage law and passed other laws to make the state’s labor market less flexible and more expensive. The state effectively mandates union scale wages …

Note to Michigan’s population council: Research favors freedom

Ranking of states shows we need to change direction

… the policies of the new legislative majorities take effect. The state has already repealed its right-to-work law and reinstituted its expensive prevailing wage law. Both of these restrict labor market freedom, and the effects are likely to show up in the index’s score. Other proposals would put even …

Note to Michigan’s population council: Research favors freedom

Ranking of states shows we need to change direction

… the policies of the new legislative majorities take effect. The state has already repealed its right-to-work law and reinstituted its expensive prevailing wage law. Both of these restrict labor market freedom, and the effects are likely to show up in the index’s score. Other proposals in the legislature …

Prevailing Wage Laws Significantly Increase Road Construction Costs

Michigan lawmakers made it harder to fix the roads by reinstating the policy

… Public Policy shows that prevailing wage laws create unnecessary … reinstituted this policy. Prevailing wage laws force taxpayers to … governments to pay the local or “prevailingwage in an area, which is set by … study, “The Costs of Prevailing Wage: Evidence From State Spending …

Endnotes

… Alan Atalah, “Impact of Prevailing Wages on the Cost Among … and Rochelle Ruffner, “Prevailing Wage in New York State: The … Effects of Michigan’s Prevailing Wage Law” (Mackinac Center … Impact of Michigan’s Prevailing Wage Law on Education Construction … Walter Fogel and David Lewin, “Wage Determination in the Public …

Summary and Conclusions

… the effect of a state prevailing wage law on road construction … the presence of a state prevailing wage law, controlling for vehicle … data), one with a $100,000 prevailing wage threshold, one with a $1,000,000 prevailing wage threshold, and one limited … employees above the market wage, regardless of structure. While …

Estimation Results

… projects covered by the prevailing wage. Our fourth sample includes … of the timing of the prevailing wage changes. This is our Kessler … estimating the cost effect of prevailing wage on road construction and … exclude the high-threshold prevailing wages states. The final … does not change the market wage enough to alter the input mix …

Model and Data

… state-level variation in prevailing wage legislation plays on key … the presence of a state prevailing wage law. We pursue two parallel … identification of the prevailing wage effect on road cost and … timing of changes to prevailing wage laws are exogenous due … not less than the general prevailing rate of per diem wages for …

Literature Review

… mic analyses of state prevailing wage laws and road construction … the role state-level prevailing wage laws play in construction … estimate of the effects of prevailing wage laws on costs. These studies … construction projects report no wage differences between prevailing and non-prevailing wage …