The Impact of Deregulation on the Employment and Wages of Airline Mechanics
AbstractThis paper describes the effects of deregulation on negotiated wage rates and employment levels of aircraft mechanics in the scheduled airline industry. Firm-specific data for the incumbent trunk airlines show relatively small changes in real wage rates since deregulation,and only recent increases in interfirm wage differentials. Employment growth rates, on the other hand, have varied widely among the incumbents, and between the incumbent trunks and the local service and new-entrant airlines. The data suggest that deregulation resulted in a transfer of 5000-7000 maintenance jobs from the incumbent trunks to the smaller airlines. This shift in employment reduced mechanics' earnings in the industry by as much as 5 percent.
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Bibliographic InfoPaper provided by Princeton University, Department of Economics, Industrial Relations Section. in its series Working Papers with number 570.
Date of creation: Jun 1985
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deregulation; wage determination; employment determination;
Other versions of this item:
- David Card, 1986. "The impact of deregulation on the employment and wages of airline mechanics," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 39(4), pages 527-538, July.
- David Card, 1986. "The Impact of Deregulation on the Employment and Wages of Airline Mechanics," NBER Working Papers 1847, National Bureau of Economic Research, Inc.
- C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
- C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
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