Michigan's Prevailing Wage Act of 1965 requires contractors to pay artificially high union wages on all state-financed projects from road repair to school construction. This study examined the performance of Michigan's economy for two 30-month periods prior to and during the law's suspension by a federal district court and found that taxpayers could save hundreds of millions of dollars annually if the law were permanently repealed. The study also reveals prevailing wage laws' negative effect on job creation in the construction industry and their discriminatory impact on black and other minority workers. 21 pages.
The Mackinac Center for Public Policy is a nonprofit research and educational institute that advances the principles of free markets and limited government. Through our research and education programs, we challenge government overreach and advocate for a free-market approach to public policy that frees people to realize their potential and dreams.
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