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Earnings, Rents, and Competition in the Airline Labor Market

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Author Info
Hirsch, Barry T
Macpherson, David A

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Abstract

Transformation of the airline labor market continues long after deregulation. Airline wages changed little immediately following deregulation, implying either the absence of regulatory rents or maintenance of product market power and union strength. Analysis for 1973-97, however, indicates that prior to recent gains, the relative earnings of air transport workers decreased markedly during the latter half of the 1980s and early 1990s. Some of the earnings advantage of airline workers represents returns to occupational skills and worker-specific quality. Labor rents are attributable largely to union bargaining power, which in turn is constrained by the financial health of carriers. Copyright 2000 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): 18 (2000)
Issue (Month): 1 (January)
Pages: 125-55
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Handle: RePEc:ucp:jlabec:v:18:y:2000:i:1:p:125-55

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  1. Severin Borenstein & Nancy L. Rose, 2007. "How Airline Markets Work...Or Do They? Regulatory Reform in the Airline Industry," NBER Working Papers 13452, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  2. Natália Pimenta Monteiro, 2007. "Regulatory reform and labour earnings in Portuguese banking," NIPE Working Papers 7/2007, NIPE - Universidade do Minho. [Downloadable!]
    Other versions:
  3. María Guadalupe, 2005. "Product Market Competition Returns to Skill and Wage Inequality," CEP Discussion Papers dp0686, Centre for Economic Performance, LSE. [Downloadable!]
    Other versions:
  4. Damien J. Neven & Lars-Hendrik Röller & Zhentang Zhang, 1999. "Union Power and Product Market Competition: Evidence from the Airline Industry," CIG Working Papers FS IV 99-05, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG). [Downloadable!]
    Other versions:
  5. Barry T. Hirsch, 2007. "Sluggish Institutions in a Dynamic World: Can Unions and Industrial Competition Coexist?," IZA Discussion Papers 2930, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  6. John T. Addison, 2006. "Politico-Economic Causes of Labor Regulation in the United States: Rent Seeking, Alliances, Raising Rivals’ Costs (Even Lowering One’s Own?), and Interjurisdictional Competition," IZA Discussion Papers 2381, Institute for the Study of Labor (IZA). [Downloadable!]
  7. Barry T. Hirsch & Edward J. Schumacher, 2000. "Private Sector Union Density and the Wage Premium: Past, Present, and Future," Working Papers 0015, East Carolina University, Department of Economics. [Downloadable!]
    Other versions:
  8. Hirsch, Barry T. & Schumacher, Edward J., 2003. "Match Bias in Wage Gap Estimates Due to Earnings Imputation," IZA Discussion Papers 783, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  9. Edward J. Schumacher & Ben S. Shippen, 1999. "Wages and Exit Decisions for Workers in Declining Industries: the Case of Textile and Apparel," Working Papers 9909, East Carolina University, Department of Economics. [Downloadable!]
  10. Barry T. Hirsch & Edward J. Schumacher, 2000. "“Earnings Imputation and Bias in Wage Gap Estimates,”," Working Papers 0003, East Carolina University, Department of Economics. [Downloadable!]
  11. Natália Pimenta Monteiro, 2004. "Regulatory reform and the Portuguese banking labour market: two decades later," NIPE Working Papers 10/2004, NIPE - Universidade do Minho. [Downloadable!]
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