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Prevailing wage laws and construction labor markets

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Author Info
Daniel P. Kessler
Lawrence F. Katz

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Abstract

Prevailing wage laws, which require that construction workers employed by private contractors on public projects be paid wages and benefits at least equal to those 'prevailing' for similar work in or near the locality in which the project is located, have been the focus of an extensive policy debate. The authors, analyzing Current Population Survey data and Census data, find that the relative wages of construction workers declined slightly after the repeal of a state prevailing wage law. However, the small overall impact of law repeal masks substantial differences in outcomes for different groups of construction employees. Repeal is associated with a sizable reduction in the union wage premium and an appreciable narrowing of the black/non-black wage differential for construction workers. (Author's abstract.)

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Publisher Info
Article provided by ILR Review, ILR School, Cornell University in its journal ILR Review.

Volume (Year): 54 (2001)
Issue (Month): 2 (January)
Pages: 259-274
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Handle: RePEc:ilr:articl:v:54:y:2001:i:2:p:259-274

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. D. N. Gujarati, 1967. "The Economics of the Davis-Bacon Act," Journal of Business, University of Chicago Press, vol. 40, pages 303. [Downloadable!]
  2. Robert S. Goldfarb & John S. Morrall III, 1981. "The Davis-Bacon Act: An appraisal of recent studies," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 34(2), pages 191-206, January.
  3. Allen, Steven G, 1987. "Can Union Labor Ever Cost Less?," The Quarterly Journal of Economics, MIT Press, vol. 102(2), pages 347-73, May. [Downloadable!] (restricted)
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  4. Ashenfelter, Orley, 1972. "Racial Discrimination and Trade Unionism," Journal of Political Economy, University of Chicago Press, vol. 80(3), pages 435-64, May-June. [Downloadable!] (restricted)
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  5. Moulton, Brent R, 1990. "An Illustration of a Pitfall in Estimating the Effects of Aggregate Variables on Micro Unit," The Review of Economics and Statistics, MIT Press, vol. 72(2), pages 334-38, May. [Downloadable!] (restricted)
  6. Allen, Steven G, 1983. "Much Ado about Davis-Bacon: A Critical Review and New Evidence," Journal of Law & Economics, University of Chicago Press, vol. 26(3), pages 707-36, October.
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. David G. Blanchflower, 2007. "Entrepreneurship in the United States," IZA Discussion Papers 3130, Institute for the Study of Labor (IZA). [Downloadable!]
  2. David G. Blanchflower & Jon Wainwright, 2005. "An Analysis of the Impact of Affirmative Action Programs on Self-Employment in the Construction Industry," IZA Discussion Papers 1856, Institute for the Study of Labor (IZA). [Downloadable!]
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  3. David Neumark, 2001. "Living Wages: Protection For or Protection From Low-Wage Workers?," NBER Working Papers 8393, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  4. Giuseppe Bertola & Francine D. Blau & Lawrence M. Kahn, 2002. "Labor Market Institutions and Demographic Employment Patterns," NBER Working Papers 9043, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  5. John T. Addison, 2006. "Politico-Economic Causes of Labor Regulation in the United States: Rent Seeking, Alliances, Raising Rivals’ Costs (Even Lowering One’s Own?), and Interjurisdictional Competition," IZA Discussion Papers 2381, Institute for the Study of Labor (IZA). [Downloadable!]
  6. David Blanchflower, 2009. "Minority self-employment in the United States and the impact of affirmative action programs," Annals of Finance, Springer, vol. 5(3), pages 361-396, June. [Downloadable!] (restricted)
    Other versions:
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