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Motor Bus Deregulation and the Gender Wage Gap: A Test of the Becker Hypothesis

  • Ann Schwarz-Miller

    (Old Dominion University)

  • Wayne IL Talley

    ()

    (Economics Department, Old Dominion University)

Registered author(s):

    This study provides a test of Becker's hypothesis that wage discrimination within an industry depends on the degree of market competition by analyzing earnings in a deregulated transportation sector--the motor bus industry. The empirical findings provide strong support for the hypothesis that motor bus deregulation, by creating an increasingly competitive environment, makes discrimination more costly and provides greater incentives for firms to employ female drivers. The earnings status of unionized white female drivers relative to white males improved significantly subsequent to deregulation, with female wages increasing even as the real wage level for male drivers declined.

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    File URL: http://college.holycross.edu/RePEc/eej/Archive/Volume26/V26N2P145_156.pdf
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    Article provided by Eastern Economic Association in its journal Eastern Economic Journal.

    Volume (Year): 26 (2000)
    Issue (Month): 2 (Spring)
    Pages: 145-156

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    Handle: RePEc:eej:eeconj:v:26:y:2000:i:2:p:145-156
    Contact details of provider: Postal: c/o Dr. Alexandre Olbrecht, The Anisfield School of Business 205, Ramapo College, 505 Ramapo Valley Road, Ramapo, New Jersey 07430, USA
    Phone: (201) 684-7346
    Web page: http://www.ramapo.edu/eea/journal.html
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    1. Heywood, John S & Peoples, James H, Jr, 1994. "Deregulation and the Prevalence of Black Truck Drivers," Journal of Law and Economics, University of Chicago Press, vol. 37(1), pages 133-55, April.
    2. John S. Heywood, 1987. "Wage Discrimination and Market Structure," Journal of Post Keynesian Economics, M.E. Sharpe, Inc., vol. 9(4), pages 617-628, July.
    3. Ashenfelter, Orley & Hannan, Timothy, 1986. "Sex Discrimination and Product Market Competition: The Case of the Banking Industry," The Quarterly Journal of Economics, MIT Press, vol. 101(1), pages 149-73, February.
    4. Black, Dan A, 1995. "Discrimination in an Equilibrium Search Model," Journal of Labor Economics, University of Chicago Press, vol. 13(2), pages 309-33, April.
    5. 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.
    6. James Peoples & Lisa Saunders, 1993. "Trucking deregulation and the black/white wage gap," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 47(1), pages 23-35, October.
    7. Peoples, James H, Jr, 1994. "Monopolistic Market Structure, Unionization, and Racial Wage Differentials," The Review of Economics and Statistics, MIT Press, vol. 76(1), pages 207-11, February.
    8. Walter Haessel & John Palmer, 1978. "Market Power and Employment Discrimination," Journal of Human Resources, University of Wisconsin Press, vol. 13(4), pages 545-560.
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