Does the Davis-Bacon Act impede or improve the functioning of labor markets?
Davis-Bacon promotes sound investment in human capital and in our physical infrastructure. As The Wall Street Journal noted, there are severe shortages of skilled work in construction in many areas of the country. When wages are cut, the industry’s ability to attract and train qualified individuals to work on construction projects is hindered even more. An adequate wage is essential to forming human capital within the industry. Because of its cyclical; and extremely competitive nature – and our reliance on infrastructure for economic development and national security -construction labor markets must be protected. Construction workers are trained for their skills. It often takes years of schooling and apprenticeship to gain proper experience – and the importance of training is greater than ever at a time when rapid technological advancements are changing the nature of work in the industry. To retain skill, workers must be paid fairly – by employers who contribute to training programs. D
