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Trucking Deregulation and Labor Earnings: Is the Union Premium a Compensating Differential?

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Author Info
Hirsch, Barry T

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Abstract

This article examines wage determination among union and nonunion truck drivers using the ninety-six monthly Current Population Surveys for 1983-90. Union density in the previously regulated for-hire sector of the trucking industry fell from about 60 percent during the regulatory period of the 1970s to about 25 percent by 1990. Union log wage premiums fell from 0.40 in the 1970s to 0.30 or below in the 1980s. Longitudinal estimates from multiple panels for 1983-84 through 1989-90 suggest far smaller union premiums, supporting the thesis that part of the wage differential following deregulation is a compensating premium for driver quality. Copyright 1993 by University of Chicago Press.

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Publisher Info
Article provided by University of Chicago Press in its journal Journal of Labor Economics.

Volume (Year): 11 (1993)
Issue (Month): 2 (April)
Pages: 279-301
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Handle: RePEc:ucp:jlabec:v:11:y:1993:i:2:p:279-301

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  1. MarĂ­a Guadalupe, 2005. "Product Market Competition Returns to Skill and Wage Inequality," CEP Discussion Papers dp0686, Centre for Economic Performance, LSE. [Downloadable!]
    Other versions:
  2. Kristen Monaco, 2001. "Examining Industry Effects for Truck Drivers," Review of Industrial Organization, Springer, vol. 18(1), pages 91-103, February. [Downloadable!] (restricted)
  3. Kristen Monaco & Taggert J. Brooks & John Bitzan, 2006. "A time series analysis of wages in deregulated industries: A study of motor carriage and rail," Journal of Applied Economics, Universidad del CEMA, vol. 0, pages 105-118, May. [Downloadable!] (restricted)
  4. Jacqueline Agesa, 1998. "The impact of deregulation on employment discrimination in the trucking industry," Atlantic Economic Journal, International Atlantic Economic Society, vol. 26(3), pages 288-303, September. [Downloadable!] (restricted)
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