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The Effect of Federal Davis-Bacon and Disadvantaged Business Enterprise Regulations on Highway Maintenance Costs

Bibliographic Data

ID3247797
AuthorsKevin Duncan (0000-0003-4261-9787, Colorado State University Pueblo, corresponding author), Kevin C Duncan (Kevin C. Duncan is Professor of Economics in Hasan School of Business at Colorado State University-Pueblo.)
Year2015
Volume68
Issue1
Pages212-237
Publication date2015-01-01
Open AccessYes
TypeARTICLE
VenueIndustrial and Labor Relations Review (JOURNAL)
Journal identifiersISSN: 0019-7939 • E-ISSN: 2162-271X
PublisherSAGE Publications Inc (PUBLISHER)
DOI10.1177/0019793914546304
OpenAlexW1991351907
LanguageEN
Citations received6
References cited17

The author compares winning bids on state and federal highway maintenance projects in Colorado between 2000 and 2011 to determine whether federal prevailing wage and disadvantaged business enterprise regulations are associated with increased construction costs. The effect of the Davis-Bacon Act is evaluated when average wage rates prevail for almost all workers involved in highway maintenance for most of the period of the study. The federal minimum for work completed by disadvantaged businesses is 10%. The goal for Colorado exceeds this minimum by two to three percentage points. Summary data indicate that federal projects are more expensive than state projects, but projects funded by the federal government are also larger and more complex. Regression results indicate that, with controls for project size and complexity, no statistically significant difference is found in the cost of federal and state projects. Results also indicate that federal regulations are not associated with reduced bid competition, an important determinant of project cost

Business · Competition (biology) · Disadvantaged · Economic growth · Economics · Government (linguistics) · Labour economics · State (computer science) · Wage · Work (physics) · Auction Theory and Applications · Engineering · Finance · Mathematics · Public Procurement and Policy · Public-Private Partnership Projects

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Citations per year0.6
Citation span2016 - 2022 (7)
Highly citedNo

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