Skip to main content


Race to the Bottom: Study Finds Outsourcing Punishes Middle Class, Rewards Corporations

June 9, 2014

As state and local governments outsource important public functions to for-profit and other private entities, what happens to the quality of life for the workers who provide these services, and the communities in which they live? A new report by the nonprofit organization In the Public Interest, surveys a growing body of evidence and industry wage data and Income-Inequality_banner630x307identifies 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 working-class communities. By paying family-supporting wages and providing important benefits such as health insurance and sick leave, governments historically created intentional "ladders of opportunity" to allow workers and their families to achieve better incomes.

To download a copy of the report visit