The Effects of Michigan’s Prevailing Wage Law

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

Contents

• 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