2015 earn conference - economic research to promote pw presentation
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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)
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Construction Union Density by State
Scott Littlehale [email protected] www.SmartCitiesPrevail.org
Source: CPS (pooled 2007‐2013). Limited to privately employed
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Research‐Based Message 1:
Prevailing Wage Preserves and Promotes Middle Class Jobs
Scott Littlehale [email protected] www.SmartCitiesPrevail.org
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PWLs Bolster the Middle Class
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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% ‐‐‐>
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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
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Construction Needs Skilled WorkersConstruction industry
hand‐wringing over “shortages” of skilled construction labor
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Research‐Based Message 2:
Prevailing Wage Strengthens Communities’ Economies.
Repeal/Narrowing weakens them.
Scott Littlehale [email protected] www.SmartCitiesPrevail.org
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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)
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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
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Message 3:Prevailing Wage is
the Best Deal for Taxpayers
(see Manzo & Carroll, “Self‐Sufficient Construction Workers”, 2014, Illinois Economic Policy Institute )
Scott Littlehale [email protected] www.SmartCitiesPrevail.org
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PW Reduces Reliance on Public Aid
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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
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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
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Resources
● Illinois Economic Policy Institute (ILEPI)
Smart Cities Prevail (@CACitiesPrevail)
Comprehensive list of economic studies on prevailing wage laws:
● http://www.faircontracting.org/studiesandreports