Unintended Consequences of Nevada’s Ninety-Percent Prevailing Wage Rule

Abstract

In 2015, the State of Nevada reduced prevailing wage rates on education-related construction to 90 percent of the applicable rate for other state-funded construction. The examination of projects built for Clark County School District between 2009 and 2108 indicates that Nevada’s wage policy has no statistically significant effect on school construction costs or bid competition, taking into consideration bids placed before and after the 2015 policy change. However, prevailing wage reductions on education projects motivated union contractors to pursue other opportunities as Nevada’s building industry expanded after 2015. Reduced participation in district bidding by union contractors contributed to a 25-percent overall decrease in bid competition and a 20-percent increase in bid costs following the 2015 policy change. While the goal of the 90-percent prevailing wage rule was to reduce the cost of building public schools, unforeseen consequences contributed to decreased bid competition and increased construction costs.

The Effect of “Federal -Aid Swap” Programs and Davis-Bacon Prevailing Wages on Highway Construction Costs and Contractor Composition: Evidence From Iowa

“…One 2020 study analyzing more than 100 school construction projects in Ohio found that prevailing wages do not have a statistically significant effect on building costs (Onsarigo, Duncan and Atalah 2020). A second analysis of nearly 80 school construction projects in the Las Vegas area found that Nevada's prevailing wage law has no statistically significant effect on school construction costs (Duncan and Waddoups 2020).…”

prevailing wage system toward the potential of trade unions in local situations

“…A possible difference is the stern and unanimous rejection by those in this company of any suggestion that women might be useful and profitable if employed by the company in responsible positions. To support the company's position, references have been made to the underemployment of Japanese people and the instability that women perceive as workers (Duncan & Waddoups, 2020). The observation of the role of women in large Japanese companies shows that there are various problems within the company which are caused by social change and changes in workers' attitudes and the responses that companies usually give to these problems.…”

“…However, if one observes not the headquarters in Tokyo as a political platform, or the history and statistics regarding the trade union movement in Japan, but the actual workplaces, then trade unions are unlikely to be an important factor in day-to-day labor relations . The day the workers interact with company officials, or in their activities in residential or community areas outside the factory (Duncan & Waddoups, 2020). The position of trade unions in Japanese factories is of course striking in comparison to the role played by trade unions in large American factories, where the resolution and avoidance of grievances demonstrates the importance of trade unions in factories and where discussion of matters of relationship Work between the company and personnel in the personnel, foremen, workers, or managers, inevitably -if it is carried out to a certain extent -touches something or centers on labor unions and their relationship with the board of directors (Johansson & Abrahamsson, 2009;Antonioli & Mazzanti, 2017).…”

The impact of the COVID ‐19 pandemic on labor market conditions in Nevada: A preliminary assessment

“…In 2019, legislation was approved that restored prevailing wage rates. For a discussion of the negative effects while the weakened rules were in force, see Duncan and Waddoups (2020).…”