2015 EARN Conference - Economic Research to Promote PW Presentation
-
Upload
frank-manzo-iv -
Category
Documents
-
view
10 -
download
0
description
Transcript of 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
3
Prevailing Wage law by State (2007)
Construction Union Density by State
Scott Littlehale [email protected] 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 [email protected] 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)
4
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 [email protected] 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 [email protected] 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