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5. Airline Employment, Productivity, And Working Conditions Following Deregulation

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  • Brown Johnson, Nancy
  • Anderson, Jonathan R

Abstract

Despite predictions that the Airline Deregulation Act of 1978 would lower wage levels for airline workers, evidence of significant wage declines did not appear until the 1990s. The lagged wage effects suggest that airlines used alternative employment strategies to adjust to the new competitive environment. This chapter examines whether and the extent that deregulation had an effect on non-wage employment factors including employment, productivity, and working conditions. Employment has expanded but with periods of significant economic downturns, part-time workers are increasingly used, and industry productivity has also advanced but at a rate concomitant with the manufacturing sector. Some evidence of deteriorating working conditions exists including increased fatigue among pilots and flight attendants, customer abuse, and continuing high levels of injuries.

Suggested Citation

  • Brown Johnson, Nancy & Anderson, Jonathan R, 2004. "5. Airline Employment, Productivity, And Working Conditions Following Deregulation," Research in Transportation Economics, Elsevier, vol. 10(1), pages 79-108, January.
    • Handle: RePEc:eee:retrec:v:10:y:2004:i:1:p:79-108
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    1. Carol Boyd, 2002. "Customer Violence and Employee Health and Safety," Work, Employment & Society, British Sociological Association, vol. 16(1), pages 151-169, March.
    2. Jody Hoffer Gittell & Andrew Von Nordenflycht & Thomas A. Kochan, 2004. "Mutual Gains or Zero Sum? Labor Relations and Firm Performance in the Airline Industry," ILR Review, Cornell University, ILR School, vol. 57(2), pages 163-180, January.
    3. Kim, E Han & Singal, Vijay, 1993. "Mergers and Market Power: Evidence from the Airline Industry," American Economic Review, American Economic Association, vol. 83(3), pages 549-569, June.
    4. Hirsch, Barry T & Macpherson, David A, 2000. "Earnings, Rents, and Competition in the Airline Labor Market," Journal of Labor Economics, University of Chicago Press, vol. 18(1), pages 125-155, January.
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    1. Goll Irene & Rasheed Abdul A., 2011. "Environmental Jolts, Clocks, and Strategic Change in the U.S. Airline Industry: The Effects of Deregulation and the 9/11/2001 Terrorist Attacks," Business and Politics, De Gruyter, vol. 13(4), pages 1-37, December.

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