Prevailing Wage Repeal, Highway Construction Costs, and Bid Competition in Kentucky: A Difference-in-Differences and Fixed Effects Analysis

IF 1 Q3 PUBLIC ADMINISTRATION

Public Works Management & Policy Pub Date : 2022-06-08 DOI:10.1177/1087724X221088887

K. Duncan, Jill L. Gigstad, Frank P. Manzo

引用次数: 0

Abstract

Data for over 2,000 highway pavement projects, constructed between 2014 and 2020, are used to examine the effect of Kentucky’s prevailing wage repeal in 2017 on relative bid costs and bid competition for state and federally funded work. Other than Davis-Bacon and Disadvantaged Business Enterprise policies for federal projects, and prevailing wage requirements on state-funded work prior to 2017, all highway construction in Kentucky is built to the same standard. A difference-in-differences and fixed effects analysis fails to find statistically significant differences in bid costs and competition between federal and state projects before and after repeal. Competition on pavement projects in Kentucky is very low compared to other states. Consequently, the impact of increased competition on bid costs is very high. Policies increasing competition in Kentucky would be more effective in reducing costs than prevailing wage repeal.

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肯塔基州盛行的工资废除、公路建设成本和投标竞争：差异与固定效应分析

使用2014年至2020年间建造的2000多个高速公路路面项目的数据，研究了肯塔基州2017年普遍取消工资对州和联邦资助工程的相对投标成本和投标竞争的影响。除了Davis Bacon和弱势商业企业对联邦项目的政策，以及2017年之前国家资助工作的现行工资要求外，肯塔基州的所有公路建设都是按照相同的标准建造的。差异和固定效应分析未能发现废除前后联邦和州项目之间的投标成本和竞争在统计上存在显著差异。与其他州相比，肯塔基州的路面项目竞争非常激烈。因此，竞争加剧对投标成本的影响非常大。肯塔基州增加竞争的政策在降低成本方面比普遍废除工资更有效。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Public Works Management & Policy PUBLIC ADMINISTRATION-

CiteScore

2.00

自引率

7.10%

发文量

期刊介绍： PUBLIC WORKS MANAGEMENT & POLICY: RESEARCH AND PRACTICE IN TRANSPORTATION, INFRASTRUCTURE, AND THE ENVIRONMENT is a peer-reviewed journal for academics and practitioners in public works and the public and private infrastructure industries. This journal addresses the planning, financing, development, and operations of civil infrastructure systems at all levels of society— from federal policy to the demand for, and delivery of, state and local public works services. PWMP solicits manuscripts that convey research results, evaluate management innovations, suggest methods of analysis and evaluation, and examine policy issues.