Prevailing Wage Laws and Construction Labor Markets
Prevailing wage laws, which require that construction workers employed by private contractors on public projects be paid at least the wages and benefits that are "prevailing" for similar work in or near the locality in which the project is located, have been the focus of an extensive policy debate. We find that the relative wages of construction workers decline 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 sizeable reduction in the union wage premium and a significant narrowing of the black/nonblack wage differential for construction workers.
|Date of creation:||Dec 1999|
|Date of revision:|
|Publication status:||published as Industrial and Labor Relations Review, Vol. 54, no. 2 (January 2001): 259-274|
|Contact details of provider:|| Postal: |
Web page: http://www.nber.org
More information through EDIRC
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.:
- Ashenfelter, Orley, 1972.
"Racial Discrimination and Trade Unionism,"
Journal of Political Economy,
University of Chicago Press, vol. 80(3), pages 435-64, May-June.
- Allen, Steven G, 1983. "Much Ado about Davis-Bacon: A Critical Review and New Evidence," Journal of Law and Economics, University of Chicago Press, vol. 26(3), pages 707-36, October.
- 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.
- D. N. Gujarati, 1967. "The Economics of the Davis-Bacon Act," The Journal of Business, University of Chicago Press, vol. 40, pages 303.
- Allen, Steven G, 1987.
"Can Union Labor Ever Cost Less?,"
The Quarterly Journal of Economics,
MIT Press, vol. 102(2), pages 347-73, May.
- Robert S. Goldfarb & John S. Morrall III, 1981. "The Davis-Bacon Act: An appraisal of recent studies," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 34(2), pages 191-206, January.
When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:7454. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If references are entirely missing, you can add them using this form.