IDEAS home Printed from https://ideas.repec.org/a/eee/retrec/v89y2021ics0739885921001013.html
   My bibliography  Save this article

Driver turnover in the trucking industry: What's the cost of reducing driver quit rates?

Author

Listed:
  • Trick, Steven
  • Peoples, James
  • Ross, Anthony

Abstract

This paper empirically examines the personal characteristics of truck drivers that are associated with a greater probability of driver turnover. Exploration of this phenomenon is significant in part because knowing who is likely to leave a trucking company helps decision makers in trucking firms identify effective measures needed to reduce driver turnover. Estimation results of a discrete driver quit choice model along with findings from estimating a driver wage equation, are used to predict the driver compensation needed to mitigate high driver turnover. These findings show that at the mean, drivers who stay on the job receive $54.25 (2018 dollars) more per week than drivers who leave, which translates to $2836.20 annually and is 6.02% percent above the mean wage of drivers who leave their job. The value of this annual wage differential is less than the mean value of the conservatively low estimate of $3654.72 (2018 dollars) computed in past research as the per driver cost of truck driver turnover. We interpret these results to suggest that it is cost effective for trucking companies to increase driver compensation. Indeed, truck driver wage trends do show a recent pattern of wage gains.

Suggested Citation

  • Trick, Steven & Peoples, James & Ross, Anthony, 2021. "Driver turnover in the trucking industry: What's the cost of reducing driver quit rates?," Research in Transportation Economics, Elsevier, vol. 89(C).
    • Handle: RePEc:eee:retrec:v:89:y:2021:i:c:s0739885921001013
    DOI: 10.1016/j.retrec.2021.101129
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0739885921001013
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.retrec.2021.101129?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Suzuki, Yoshinori & Crum, Michael R. & Pautsch, Gregory R., 2009. "Predicting truck driver turnover," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 45(4), pages 538-550, July.
    2. Dale L. Belman & Kristen A. Monaco, 2001. "The Effects of Deregulation, De-Unionization, Technology, and Human Capital on the Work and Work Lives of Truck Drivers," ILR Review, Cornell University, ILR School, vol. 54(2A), pages 502-524, March.
    3. Michael H. Belzer, 2002. "Technological Innovation and the Trucking Industry: Information Revolution and the Effect on the Work Process," Journal of Labor Research, Transaction Publishers, vol. 23(3), pages 375-395, July.
    4. Bender, Stefan & Lane, Julia & Shaw, Kathryn L. & Andersson, Fredrik & von Wachter, Till (ed.), 2008. "The Analysis of Firms and Employees," National Bureau of Economic Research Books, University of Chicago Press, number 9780226042879, November.
    5. Michael R Faulkiner & Michael H Belzer, 2019. "Returns to compensation in trucking: Does safety pay?," The Economic and Labour Relations Review, , vol. 30(2), pages 262-284, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Michael R Faulkiner & Michael H Belzer, 2019. "Returns to compensation in trucking: Does safety pay?," The Economic and Labour Relations Review, , vol. 30(2), pages 262-284, June.
    2. Thanos Fragkandreas, 2022. "Three Decades of Research on Innovation and Inequality: Causal Scenarios, Explanatory Factors, and Suggestions," Working Papers 60, Birkbeck Centre for Innovation Management Research, revised Feb 2022.
    3. Berger, Thor & Chen, Chinchih & Frey, Carl Benedikt, 2018. "Drivers of disruption? Estimating the Uber effect," European Economic Review, Elsevier, vol. 110(C), pages 197-210.
    4. Marc-Arthur Diaye & Nathalie Greenan, 2012. "The Economics of Performance Appraisals," Working Papers halshs-00856229, HAL.
    5. repec:zbw:rwirep:0499 is not listed on IDEAS
    6. Peter Hinrichs, 2024. "An Empirical Analysis of Racial Segregation in Higher Education," Education Finance and Policy, MIT Press, vol. 19(2), pages 218-251, Spring.
    7. Erling Barth & Alex Bryson & James C. Davis & Richard Freeman, 2014. "It's Where You Work: Increases in Earnings Dispersion across Establishments and Individuals in the U.S," NBER Working Papers 20447, National Bureau of Economic Research, Inc.
    8. Jon Anderson & Stephen Burks & Jeffrey Carpenter & Lorenz Götte & Karsten Maurer & Daniele Nosenzo & Ruth Potter & Kim Rocha & Aldo Rustichini, 2013. "Self-selection and variations in the laboratory measurement of other-regarding preferences across subject pools: evidence from one college student and two adult samples," Experimental Economics, Springer;Economic Science Association, vol. 16(2), pages 170-189, June.
    9. Stephen V. Burks & Jeffrey Carpenter & Lorenz Goette & Kristen Monaco & Aldo Rustichini & Kay Porter, 2007. "Using Behavioral Economic Field Experiments at a Large Motor Carrier: The Context and Design of the Truckers and Turnover Project," NBER Working Papers 12976, National Bureau of Economic Research, Inc.
    10. Beatrice Brunner & Andreas Kuhn, 2014. "The impact of labor market entry conditions on initial job assignment and wages," Journal of Population Economics, Springer;European Society for Population Economics, vol. 27(3), pages 705-738, July.
    11. Burks, Stephen V. & Carpenter, Jeffrey P. & Götte, Lorenz & Monaco, Kristen & Porter, Kay & Rustichini, Aldo, 2007. "Using Behavioral Economic Experiments at a Large Motor Carrier: The Context and Design of the Truckers and Turnover Project," IZA Discussion Papers 2789, Institute of Labor Economics (IZA).
    12. Burks, Stephen V. & Monaco, Kristen, 2018. "Is the U.S. Labor Market for Truck Drivers Broken? An Empirical Analysis Using Nationally Representative Data," IZA Discussion Papers 11813, Institute of Labor Economics (IZA).
    13. Ralf Elbert & Lowis Seikowsky, 2017. "The influences of behavioral biases, barriers and facilitators on the willingness of forwarders’ decision makers to modal shift from unimodal road freight transport to intermodal road–rail freight tra," Journal of Business Economics, Springer, vol. 87(8), pages 1083-1123, November.
    14. Gerard, François & Lagos, Lorenzo & Severnini, Edson & Card, David, 2018. "Assortative Matching or Exclusionary Hiring? The Impact of Firm Policies on Racial Wage Differences in Brazil," CEPR Discussion Papers 13273, C.E.P.R. Discussion Papers.
    15. Johannes F. Schmieder & Till von Wachter, 2010. "Does Wage Persistence Matter for Employment Fluctuations? Evidence from Displaced Workers," American Economic Journal: Applied Economics, American Economic Association, vol. 2(3), pages 1-21, July.
    16. Peter Cappelli & Martin J. Conyon, 2018. "What Do Performance Appraisals Do?," ILR Review, Cornell University, ILR School, vol. 71(1), pages 88-116, January.
    17. Adrienne T. Edisis, 2016. "The Effect of Unemployment Insurance on Temporary Help Services Employment," Journal of Labor Research, Springer, vol. 37(4), pages 484-503, December.
    18. Pekka Ilmakunnas & Seija Ilmakunnas, 2011. "Diversity at the Workplace: Whom Does it Benefit?," De Economist, Springer, vol. 159(2), pages 223-255, June.
    19. Bachmann, Ronald & Bauer, Thomas K. & David, Peggy, 2010. "Labour Market Entry Conditions, Wages and Job Mobility," Ruhr Economic Papers 188, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    20. Ronald Bachmann & Thomas K. Bauer & Peggy David, 2010. "Labour Market Entry Conditions, Wages and Job Mobility," Ruhr Economic Papers 0188, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    21. Rita K. Almeida, 2010. "Openness and Technological Innovation in East Asia: Have They Increased the Demand for Skills?," Asia-Pacific Development Journal, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), vol. 17(1), pages 63-95, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:retrec:v:89:y:2021:i:c:s0739885921001013. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/620614/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.