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Midwest Economic Policy Institute

A Higher Road for a Better Tomorrow

Proposed Prevailing Wage Changes Would Hurt the Ohio Economy

A new study finds that weakening or repealing Ohio’s prevailing wage standard is unlikely to save taxpayer dollars. In fact, a weaker policy would increase taxpayer burdens as construction worker incomes decrease and their reliance on public assistance increases. A weaker law would also mean fewer resources for apprenticeship training in this fast-growing sector, less work for Ohio businesses and Ohio workers, and negative overall impacts on the Ohio economy.

The study was conducted by researchers at Kent State University, Bowling Green State University, Colorado State University-Pueblo, and the Midwest Economic Policy Institute.

Continue reading “Proposed Prevailing Wage Changes Would Hurt the Ohio Economy”

“Right-to-Work” Laws in the Midwest Have Reduced Unionization and Lowered Wages

Taken from Illinois Update and the Illinois Economic Policy Institute (ILEPI).


A new study finds that the introduction of “right-to-work” laws has reduced the unionization rate by 2.1 percentage points and lowered worker wages by 2.6% in Indiana, Michigan, and Wisconsin. Continue reading ““Right-to-Work” Laws in the Midwest Have Reduced Unionization and Lowered Wages”

The Need for Skilled Construction Workers: Alabama vs. Missouri

Construction is one of the fastest growing industries in the United States.
Demand for skilled construction workers is evident across the country, with the industry now fully recovered from the Great Recession. However, approximately one-third of all construction workers across the nation are over the age of 50. Young workers are not entering the construction workforce as fast as those who are leaving, resulting in a deficit in the “replacement rate.”

Let’s take the case study of Alabama.

Alabama is not immune to the need for high-skilled workers. Continue reading “The Need for Skilled Construction Workers: Alabama vs. Missouri”

HB 1002: Investing in Indiana’s Future

Indiana is well-positioned to improve its transportation infrastructure. Providing further investment in the network would support business growth and a thriving economy.   Continue reading “HB 1002: Investing in Indiana’s Future”

How the Decline of Unions Has Caused Inequality to Rise in Each Midwest State

A new report finds that union decline has resulted in economic redistribution from workers to owners.

Continue reading “How the Decline of Unions Has Caused Inequality to Rise in Each Midwest State”

The High Cost of Construction Injuries and Fatalities

A new Economic Commentary [PDF] released by the Midwest Economic Policy Institute compares the working conditions of 5 Midwest construction labor markets: Iowa, Minnesota, North Dakota, South Dakota, and Wisconsin. The report finds that worker fatalities result in high economic burdens for Midwest states, but that Minnesota has the safest construction industry out of the 5 states.

Continue reading “The High Cost of Construction Injuries and Fatalities”

Lowering Worker Wages is NOT the Answer

Lowering the wages of construction workers is NOT the way to prosperity.

There has been a national push to repeal or weaken state prevailing wage laws. Today, 21 states do not have prevailing wage laws and a few states are considering repealing their laws, including Missouri and Wisconsin – which recently weakened prevailing wage. Many other states have considered weakening their laws over he past few years. In addition, the national prevailing wage law, called the Davis-Bacon Act, has recently come under attack.

A prevailing wage law supports blue-collar workers employed in public construction. Prevailing wage is essentially a minimum wage for construction workers on publicly-funded projects. The law guarantees that workers employed on infrastructure projects funded by taxpayer dollars are compensated according to local market rates. By ascertaining the local market rate, a prevailing wage law prevents units of government from undercutting wage standards in a community.

Repealing of state prevailing wage laws only hurt construction workers.  Continue reading “Lowering Worker Wages is NOT the Answer”

Gas Taxes are Unsustainable for Transportation Infrastructure Needs

Transportation infrastructure is essential for economic growth.  In order to maintain quality transportation infrastructure, sustainable funding is imperative.  An Economic Commentary [PDF] by the Midwest Economic Policy Institute explores the role of the motor fuel tax both nationally and internationally.  The United States currently suffers from insufficient funding due to a broken system. Without changes, more and more roads, bridges, and public transit systems will fall into disrepair.

The primary source of transportation funding in the United States is the motor fuel tax – also known as the gas tax or fuel tax.  The federal gasoline and diesel taxes currently stand at 18.4 cents and 24.4-cents per gallon, respectively.

The revenue collected from federal fuel taxes is deposited into the Highway Trust Fund (HTF).  While fuel taxes previously served as the primary source of funding for the HTF, comprising over 80 percent of its funding between 1995 and 2007, they have proven to be an unsustainable revenue source in recent years.  Between 2008 and 2014, the HTF received $65 billion from the U.S. Treasury’s general fund to meet the fund’s obligations, since annual spending for highways and transit began to exceed the revenues generated. Continue reading “Gas Taxes are Unsustainable for Transportation Infrastructure Needs”

Prevailing Wage Repeal Would Hurt Kentucky’s Economy

Repealing Kentucky’s prevailing wage law would weaken the state’s economy, according to a new study.

Eliminating prevailing wage would cause a pay cut for middle-class workers, qualify more workers for public assistance, slash apprenticeship training, and result in more of Kentucky’s tax dollars going to out-of-state or foreign contractors. Veterans, who populate construction trades at a higher rate than non-veterans, would be particularly impacted if Kentucky were to repeal its prevailing wage standards.

Continue reading “Prevailing Wage Repeal Would Hurt Kentucky’s Economy”

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