Race to the Bottom: How Outsourcing Public Services Rewards Corporations and Punishes the Middle Class

This report highlights the impact of state and local governments outsourcing public services on the quality of life for workers and communities. A growing body of evidence, including industry wage data, suggests an alarming trend: outsourcing public services sets off a downward spiral in which reduced worker wages and benefits can hurt the local economy and overall stability of middle- and working-class communities. The report outlines the short- and long-term impacts of how outsourcing affects a community, as well as case studies that show the on-the-ground effects of this outsourcing. The recommendations to alleviate these impacts center on greater oversight by state or local governments of contractors include oversight of wages and benefits for workers, creation of a public database of these contracts, and other measures to protect workers and the community.