Gerald Finkel - The economics of the construction industry
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All rights reserved. No part of this book may be reproduced in any form without written permission from the publisher, M. E. Sharpe, Inc., 80 Business Park Drive, Armonk, New York 10504.
Library of Congress Cataloging-in-Publication Data
Finkel, Gerald. The economics of the construction industry / Gerald Finkel. p. cm. Includes bibliographical references and index. ISBN 1-56324-986-3 (hc : alk. paper). ISBN 1-56324-987-1 (pbk. : alk. paper) 1. Construction industryUnited States. I. Title. HD9715.U52F52 1997 338.4'769'00973dc20 9644648 CIP
Printed in the United States of America
The paper used in this publication meets the minimum requirements of the American National Standard for Information Sciences Permanence of Paper for Printed Library Materials, ANSI Z 39.48-1984.
To Helen, Margot, and Suzanne, for their love and understanding
Page vii
Contents
List of Tables and Figures
ix
Introduction
3
1. The Historical Development of the Construction Market
11
2. Economic Theory and the Construction Industry
21
3. An Industry Overview
32
4. Trends and Directions in the Construction Industry
42
5. Construction Statistics
56
6. Determinants of Construction Investment
64
7. The Role of Government
72
8. Productivity
83
9. Case Studies and the Union/Nonunion Productivity Question
89
10. Competition and Workplace Control
102
11. The Determination of Wages
113
12. Organized Labor and the Building Trades
125
13. Construction Industry Training
137
14. Safety Concerns
147
15. Conclusions
158
Bibliography
167
Index
173
Page ix
List of Tables and Figures
Tables
3.1 Establishment Size in the Construction Industry, 1993
33
9.1 Construction Industry Productivity Index, 1950-1972
92
11.1 Years of Apprenticeship for Selected Building Trades (New York, NY)
120
12.1 Construction Union Membership, 1975 and 1995 (thousands)
127
Figures
4.1 Declining Portion of Real Constuction GDP as Part of Total Real U.S. GDP, 1977-1993
43
4.2 Comparison of Construction GDP and Total U.S. GDP, 1949-1993
44
9.1 Real Construction Worker Hourly Output, 1949-1993
94
9.2 Percentage Change in Real Hourly Output, Constuction Workers, 1950-1993
95
14.1 The Demand for Safety
155
Page xi
Acknowledgments
Many of the ideas and concepts for this book were developed on two levels. In an academic setting, courses on the construction industry that I have taught at the Harry Van Arsdale Jr. School for Labor Studies provided an incentive and purpose for my research. In addition, discussions with the late Professor David M. Gordon of the Graduate Faculty of the New School for Social Research helped to frame issues surrounding productivity and workplace relations. I should also thank Professor Lois Gray from the Cornell University School of Industrial Relations for her kind suggestions and encouragement as well as Francine Meccio from Cornell's Institute for Women and Work.
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