Duncan, K; Philips, P and Prus, M (2006) Prevailing wage legislation and public school construction efficiency: A stochastic frontier approach. Construction Management and Economics, 24(6), pp. 625-634. ISSN 1466433X
Abstract
Stochastic frontier regression is used to examine the effect of introducing prevailing wage legislation on public school construction efficiency in British Columbia. Prior to the legislation, public school projects were from 16% to 19% smaller, in terms of square feet, than comparable private structures. However, likelihood ratio tests consistently indicate that the coefficients measuring the effect of the policy on the size differential between covered and uncovered projects are not statistically different from zero. These results suggest that construction wage requirements did not alter input utilisation in a way that significantly affected construction output. Average inefficiency for school construction in British Columbia over the period of the study is 12.1%.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | prevailing wage laws; regression analysis |
| Index terms: | efficiency, regression analysis, public school, legislation, construction output, educational building construction |
| Subjects: | performance management, statistical analysis, educational institutions, building construction, legal systems, operations management |
| Topics: | Design Practice, Legal Issues, Quality Management, Education, Research Practice, Project Management |
| Descriptive scope: | 3 PCA |
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