The repealing of prevailing wage laws has serious consequences, and even though the average citizen may not work in construction, prevailing wage laws have enormous and beneficial impact on the state, cities, towns and rural areas of Ohio.
A surrounding myth of the prevailing wage law is that it artificially inflates the cost of construction. However, looking at the total cost, the loss of prevailing wage laws typically result in lower wages and benefits which drive experienced and skilled workers out of the construction industry. Less experienced and poorly trained workers increase the chance of serious injury accidents and decrease the levels of productivity, funneling dollars from construction budgets that could have otherwise been prevented. The state of Missouri commissioned a study to evaluate the impact of repealing prevailing wage laws in that state. Here are some of the results:
- The repeal of the prevailing wage law would cost Missouri residents and their families between $294.4 million and $356 million annually in lost income.
- The repeal of the prevailing wage law would cost the State of Missouri between $5.7 million and $6.9 million in lost sales tax collections annually.
- The repeal of the prevailing wage law would cost the State of Missouri between $17.7 and $21.4 million annually in lost income tax revenue.
- The total economic loss due to repeal of the prevailing wage law in Missouri would be a loss of income and revenue between $317.8 million and $384.2 million annually.
- The Missouri study found that total economic loss to the rural South Central Missouri region alone totaled between $2.1 million and $2.6 million annually.