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The Impacts of Deregulation on Railroad Labor

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  • Bitzan, John D.

Abstract

This study examines the impacts that railroad and trucking deregulation had on rail labor earnings and employment. Although the impacts that deregulation has had on pricing. service, profits, and productivity are fairly well understood, its impacts on rail wages and employment have not been well understood. In examining the impacts of deregulation on rail labor earning , the study finds that the real earnings of operating employees in the rail industry, which were steadily declining prior to deregulation, have steadily increased following deregulation. Similarly, the earnings premiums of rail operating employees over similar employees in manufacturing have also increased at a steady rate following deregulation. These results are not surprising in light of the fact that railroad profits and productivity have also increased steadily since deregulation. In examining the impacts of deregulation on employment, the study find a sharp decline in operating employment as a result of deregulation, and a considerable increase in the productivity of labor.

Suggested Citation

  • Bitzan, John D., 1997. "The Impacts of Deregulation on Railroad Labor," MPC Reports 231800, North Dakota State University, Upper Great Plains Transportation Institute.
    • Handle: RePEc:ags:ndtimr:231800
    DOI: 10.22004/ag.econ.231800
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    References listed on IDEAS

    as
    1. Oswald, Andrew J, 1985. " The Economic Theory of Trade Unions: An Introductory Survey," Scandinavian Journal of Economics, Wiley Blackwell, vol. 87(2), pages 160-193.
    2. Winston, Clifford, 1993. "Economic Deregulation: Days of Reckoning for Microeconomists," Journal of Economic Literature, American Economic Association, vol. 31(3), pages 1263-1289, September.
    3. David Card, 1986. "The Impact of Deregulation on the Employment and Wages of Airline Mechanics," ILR Review, Cornell University, ILR School, vol. 39(4), pages 527-538, July.
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    Cited by:

    1. Brown, Dennis M. & Flake, Oliver L., 1999. "Rural Transportation: An Annotated Bibliography," Miscellaneous Publications 323881, United States Department of Agriculture, Economic Research Service.
    2. Laura Padilla Angulo, 2013. "Labour inputs substitution during corporate restructuring: a translog model approach for US freight railroads," Applied Economics, Taylor & Francis Journals, vol. 45(18), pages 2547-2562, June.
    3. Guido Friebel & Gerard McCullough & Laura Padilla, 2016. "Product Market Deregulation's Winners and Losers: US Railroads between 1981 and 2001," Working Papers 2016-005, Universidad Loyola Andalucía, Department of Economics.
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