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The impact of deregulation on the employment and wages of airline mechanics

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  • David Card

Abstract

This paper describes the effects of deregulation on negotiated wage rates and employment levels of aircraft mechanics in the scheduled airline industry between 1978 and 1984. A firm-by-firm analysis of the established trunk airlines shows relatively small changes in real wage rates since 1978, and only recent changes in interfirm wage differentials. Employment growth rates, however, have varied widely, both among the established trunk airlines and between them and the new-entrant and former local service airlines. The data suggest that deregulation shifted 5,000 to 7,000 maintenance jobs from the established trunks to the smaller airlines. The shift may have reduced average hourly earnings of mechanics in the industry by as much as 5% below the level they would have reached in the absence of deregulation. (Abstract courtesy JSTOR.)

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Bibliographic Info

Article provided by ILR Review, Cornell University, ILR School in its journal ILR Review.

Volume (Year): 39 (1986)
Issue (Month): 4 (July)
Pages: 527-538

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Handle: RePEc:ilr:articl:v:39:y:1986:i:4:p:527-538

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Cited by:
  1. Kristen Monaco, 2001. "Examining Industry Effects for Truck Drivers," Review of Industrial Organization, Springer, Springer, vol. 18(1), pages 91-103, February.
  2. repec:fth:prinin:247 is not listed on IDEAS
  3. Jennifer K. Shanefelter, 2008. "Restructuring, Ownership and Efficiency: The Case of Labor in Electricity Generation," EAG Discussions Papers, Department of Justice, Antitrust Division 200812, Department of Justice, Antitrust Division.
  4. Jeff Borland, 2000. "Economic Explanations of Earnings Distribution Trends in the International Literature and Application to New Zealand," Treasury Working Paper Series 00/16, New Zealand Treasury.
  5. Maria Guadalupe, 2005. "Product market competition returns to skill and wage inequality," LSE Research Online Documents on Economics, London School of Economics and Political Science, LSE Library 19895, London School of Economics and Political Science, LSE Library.
  6. David Card, 1996. "Deregulation and Labor Earnings in the Airline Industry," NBER Working Papers 5687, National Bureau of Economic Research, Inc.
  7. Ana P. Fernandes & Priscila Ferreira & L. Alan Winters, 2013. "Firm Entry Deregulation, Competition and Returns to Education and Skill," NIMA Working Papers, Núcleo de Investigação em Microeconomia Aplicada (NIMA), Universidade do Minho 48, Núcleo de Investigação em Microeconomia Aplicada (NIMA), Universidade do Minho.
  8. James Peoples, 1998. "Deregulation and the Labor Market," Journal of Economic Perspectives, American Economic Association, American Economic Association, vol. 12(3), pages 111-130, Summer.
  9. James Peoples, Jr., 1990. "Airline Deregulation and Industry Wage Levels," Eastern Economic Journal, Eastern Economic Association, Eastern Economic Association, vol. 16(1), pages 49-58, Jan-Mar.
  10. Natália Pimenta Monteiro, 2004. "Regulatory reform and the Portuguese banking labour market: two decades later," NIPE Working Papers, NIPE - Universidade do Minho 10/2004, NIPE - Universidade do Minho.

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