2015 EARN Conference - Economic Research to Promote PW Presentation

Scott Littlehalewww.SmartCitiesPrevail.org

Prevailing Wage Standards:More important – and easier to fight for –

than you might have thought

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Prevailing Wage law by State (2007)

Construction Union Density by State

Scott Littlehale slittlehale@nccrc.org www.SmartCitiesPrevail.org

Source: CPS (pooled 2007‐2013). Limited to privately employed

Research‐Based Message 1: 

Prevailing Wage Preserves and Promotes Middle Class Jobs

Scott Littlehale slittlehale@nccrc.org www.SmartCitiesPrevail.org

PWLs Bolster the Middle Class

PWLs Bolster Health Security

51%

69%

30% 40% 50% 60% 70% 80% 90% 100%

NON‐CONST

CONSTRUCTION

NON‐CONST

CONSTRUCTION

NONE ‐

WEA

KAV

G ‐

STRO

NG

Covered by Any Health Insurance

Private Sector Employed Men, 2008‐2012

<‐‐ ‐13%

<‐‐‐ ‐27%   ‐‐‐>

cDOL‐sponsored 2012 study:•Apprentices earn $124k more over career*•Government cost: benefit: $35 total per $1 invested

2013 Study: Apprenticeships succeed more in PWL states

Sources: Quesada, Manzo, Belman and Bruno (2013); Transportation Equity Network, October 2011; Mathematica Policy Research, July 25, 2012

PW Helps Build Careers, Not Just Jobs

Sources: Mathematica Policy Research (2012); Dickson Quesada, Manzo, Belman, and Bruno (2013)

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Net Effects: Increase in Productivity

Construction Needs Skilled WorkersConstruction industry 

hand‐wringing over “shortages” of skilled  construction labor

Research‐Based Message 2:

Prevailing Wage Strengthens Communities’ Economies. 

Repeal/Narrowing weakens them.

Scott Littlehale slittlehale@nccrc.org www.SmartCitiesPrevail.org

PW Repeal Economic Effects• Shifts work to 

out‐of‐state contractors

• Industry‐wide wages: ↓

• Income, jobs, tax revenue: ↓

Source: Dickson Quesada, Manzo, Belman, and Bruno (2013)

Economic Impact Analyses● Consequences of Prevailing Wage Elimination in California:

• 3% – 5.5% increase in out‐of‐state contracting

• Output reduced by $1.4 billion

• Income reduced by $1.5 billion

• 12% decline in workforce productivity

Message 3:Prevailing Wage is 

the Best Deal for Taxpayers

(see Manzo & Carroll, “Self‐Sufficient Construction Workers”, 2014, Illinois Economic Policy Institute )

Scott Littlehale slittlehale@nccrc.org www.SmartCitiesPrevail.org

PW Reduces Reliance on Public Aid

Construction Workforce & Taxes by PWL

69% $121 $11$1.4

31% $50 $3.6$0.7

50%

60%

70%

80%

90%

100%

Blue Collar ConstWorkforce

Wage Income ofBCCWs

Federal IncomeTaxes (BCCWs)

Earned Income TaxCredits (BCCWs)

PWL States NonPWL States

Remember, Remember...1. Prevailing wage preserves and promotes middle 

class jobs

2. Prevailing wage strengthens state and local communities

3. Prevailing wage is the best deal for taxpayers

Resources

● Illinois Economic Policy Institute (ILEPI)

Smart Cities Prevail  (@CACitiesPrevail)

Comprehensive list of economic studies on prevailing wage laws:

● http://www.faircontracting.org/studiesandreports