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The Heritage Foundation: Labor Department Can Create Jobs by Calculating Davis–Bacon Rates More Accurately
According to a report issued by the Heritage Foundation, the United States Department of Labor uses unscientific and flawed methods to estimate the Davis-Bacon Act prevailing wage rates. The report found, amongst other findings, that current surveys do not use statistically representative samples have tiny sample sizes and combine data from economically unrelated counties or set local wages using statewide data. Furthermore, nearly half of the surveys are over a decade old and don’t account for economic changes over the last ten year. The report concludes by suggesting the DOL should switch to Bureau of Labor Statistics data to get a more accurate reading of wage data.
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