Study: Michigan’s Prevailing Wage Law Could Drive Up Road Construction Costs by 14.3 Percent

States without prevailing wage laws pay far less for road construction and repairs than states with them, according to a study written by Dr. Michael Hicks, a professor of economics at Ball State University. 

Hicks concludes prevailing wage laws increase costs by 8.5% to 14.3% per mile of quality-road construction. Using 2018 costs in Michigan – the year the Great Lakes State repealed its prevailing wage law – those percentages translate as $5,900 to $9,200 per mile of road.

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