Statistics: The Prevailing Wage Difference

HIGHER PRODUCTIVITY, BETTER WAGES AND MORE LOCAL HIRING
WITH NO INCREASE IN PROJECT COST


Most peer-reviewed research has definitively concluded that there is no significant cost difference between prevailing wage and non-prevailing wage projects.[i] This is largely due to differences in efficiency and productivity which trigger other changes in construction industry spending dynamics.

A 2015 comparison of the construction industries in the 25 US States with average or strong prevailing wage laws and the 25 with weak or no prevailing wage laws quantifies these and other important differences.

These include not only wages and productivity, but rates of local hiring, reliance on taxpayer funded welfare programs and public budgets—each of which are charted below. Above all else, these differences show that prevailing wage policies offer the best value for taxpayers, the economy and the construction industry as a whole

[i] Below is a partial list of peer-reviewed studies have concluded that there is no statistically significant cost difference between prevailing wage and non-prevailing wage public construction projects.

© 2016 Smart Cities Prevail

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