Minnesota Wins with Prevailing Wage (Midwest Economic Policy Institute)

“At a time when unemployment is historically low and 72% of contractors are having trouble filling craft positions, one policy has helped recruit and retain skilled workers into Minnesota’s construction industry: the Minnesota Prevailing Wage Act. The policy provides local minimum wages for construction workers employed on public projects and levels the playing field for contractors.

The Minnesota Prevailing Wage Act keeps construction costs stable.

  • The vast majority studies find that prevailing wage laws have no effect on public construction costs.
  • Labor costs are a low and historically declining share of total project costs– about 23%.
  • A new analysis of 640 bids on school construction projects in Minnesota finds that winning bids on projects with prevailing wages are no more costly than bids on projects without prevailing wages.

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