AN ANALYSIS OF THE IMPACT OF PREVAILING WAGE THRESHOLDS ON PUBLIC CONSTRUCTION: IMPLICATIONS FOR ILLINOIS

A state prevailing wage law supports construction workers employed on public infrastructure projects. The policy requires that workers employed on projects funded by taxpayer dollars are compensated according to hourly wage and benefits rates normally paid on similar private and public projects in an area. This report is an evaluation of contract thresholds for project coverage under the prevailing wage law. The report reviews the academic and policy research on the effects that increases in state contract thresholds have on business, the labor market and economic outcomes. The analysis is subsequently applied to Illinois to forecast effects if Illinois were to introduce a prevailing wage threshold.