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Union compensation following intrastate deregulation: Evidence from the US trucking industry

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  • Trick, Steven
  • Peoples, James

Abstract

This study contributes to the analysis of union pay compensation patterns in the trucking industry by considering the effect of intrastate deregulation on wage and nonwage compensation in the US trucking industry. Providing such an analysis contributes to gaining greater understanding of the persistence of relatively high union premiums in the for-hire sector following federal legislation promoting interstate competition. For-hire trucking still faced intrastate rate and entry regulation following interstate deregulation within this trucking sector. Hence, intrastate service could still generate rent to be shared with drivers. The passage of the Airport Improvement Act (AIA) of 1995 created a business environment that placed additional competitive pressure on rates by eliminating intrastate regulation. Given the stepped-up competition following this act, this study hypothesizes that for-hire union premiums should continue to decline if union drivers were the beneficiaries of regulatory rent. Findings using individual worker information support this study's hypothesis.

Suggested Citation

  • Trick, Steven & Peoples, James, 2012. "Union compensation following intrastate deregulation: Evidence from the US trucking industry," Transport Policy, Elsevier, vol. 24(C), pages 10-18.
  • Handle: RePEc:eee:trapol:v:24:y:2012:i:c:p:10-18
    DOI: 10.1016/j.tranpol.2012.06.013
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    References listed on IDEAS

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    1. Richard Beilock & James Freeman, 1984. "Florida Motor Carrier Deregulation: Perspectives of Urban and Rural Shipper/Receivers," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 66(1), pages 91-98.
    2. John S. Ying & Theodore E. Keeler, 1991. "Pricing in a Deregulated Environment: The Motor Carrier Experience," RAND Journal of Economics, The RAND Corporation, vol. 22(2), pages 264-273, Summer.
    3. Barry T. Hirsch, 1988. "Trucking Regulation, Unionization, and Labor Earnings: 1973-85," Journal of Human Resources, University of Wisconsin Press, vol. 23(3), pages 296-319.
    4. Barry T. Hirsch & Edward J. Schumacher, 2004. "Match Bias in Wage Gap Estimates Due to Earnings Imputation," Journal of Labor Economics, University of Chicago Press, vol. 22(3), pages 689-722, July.
    5. Kevin E. Henrickson & Wesley W. Wilson, 2008. "Compensation, Unionization, and Deregulation in the Motor Carrier Industry," Journal of Law and Economics, University of Chicago Press, vol. 51(1), pages 153-177, February.
    6. Hirsch, Barry T, 1993. "Trucking Deregulation and Labor Earnings: Is the Union Premium a Compensating Differential?," Journal of Labor Economics, University of Chicago Press, vol. 11(2), pages 279-301, April.
    7. Blair, Roger D & Kaserman, David L & McClave, James T, 1986. "Motor Carrier Deregulation: The Florida Experiment," The Review of Economics and Statistics, MIT Press, vol. 68(1), pages 159-164, February.
    8. Rose, Nancy L, 1987. "Labor Rent Sharing and Regulation: Evidence from the Trucking Industry," Journal of Political Economy, University of Chicago Press, vol. 95(6), pages 1146-1178, December.
    9. Teske, Paul & Best, Samuel & Mintrom, Michael, 1994. "The Economic Theory of Regulation and Trucking Deregulation: Shifting to the State Level," Public Choice, Springer, vol. 79(3-4), pages 247-256, June.
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