PERPETUAL STATE BUDGET DEFICITS and mounting debt have re-ignited claims that repeal of Illinois’ prevailing wage provisions will cut public construction costs and save taxpayers money. Critics of prevailing wage laws (PWLs) assert they inflate the costs of government contracts by compensating labor at levels higher than market wages. Contrary to opponents’ claims, findings from this study indicate that Illinois’ PWL is associated with a number of positive labor market outcomes for construction workers at costs that are either negligible or fully offset. Full report.