• A new paper looks at "prevailing wage law," which requires a minimum rate for workers on government contracts.
• The researchers found this practice boosts pay and benefits for workers.
• Wider implementation of prevailing wage law could make jobs better and therefore ease labor shortages.

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As millions of Americans quit their jobs for a better deal, and service sector jobs struggle to staff up, a little-known wage law might be the key to ending the labor shortage.

That's according to a new paper that looks at prevailing wage law, which is essentially a minimum wage set for workers on government contracts. The laws are meant to create a level playing field for businesses bidding on government contracts, according to study co-author Frank Manzo, executive director of the Illinois Economic Policy Institute. They make sure labor costs are equal across the board and that taxpayer dollars go towards projects that maintain local standards of pay, workforce skill, and quality.

The lesson for the economy is that a mandate for contractor pay ripples out to all workers because private companies are forced to raise their wages to compete for talent. That would also help ease labor shortages sweeping the country as many...

Read Full Story: https://www.businessinsider.com/prevailing-wage-law-solve-labor-shortage-grea...