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Regulation and Labor Earnings

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  • Wallace Hendricks
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    Abstract

    This paper investigates the contention that workers in regulated industries receive economic rents as a consequence of the regulation. We argue that increases in wage levels due to entry regulation may be offset by employment stability guaranteed by this regulation and by increased reluctance of management to grant increases due to the type of profit regulation imposed. An empirical analysis compares earnings in seven occupations in fourteen regulated industries with earnings in other manufacturing industries. Earnings in the electric utility industry are also analyzed. Both studies are supportive of our argument.

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    Bibliographic Info

    Article provided by The RAND Corporation in its journal Bell Journal of Economics.

    Volume (Year): 8 (1977)
    Issue (Month): 2 (Autumn)
    Pages: 483-496

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    Handle: RePEc:rje:bellje:v:8:y:1977:i:autumn:p:483-496

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    Cited by:
    1. David E. Davis & Wesley W. Wilson, 2003. "Wages in Rail Markets: Deregulation, Mergers, and Changing Networks Characteristics," Southern Economic Journal, Southern Economic Association, vol. 69(4), pages 865-885, April.
    2. Natália Pimenta Monteiro, 2004. "Regulatory reform and the Portuguese banking labour market: two decades later," NIPE Working Papers 10/2004, NIPE - Universidade do Minho.
    3. Eijffinger, S.C.W. & Rossi, A., 2006. "Structural Reforms and Growth: Product and Labor Market Deregulations," Discussion Paper 2006-112, Tilburg University, Center for Economic Research.

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