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

Author

Listed:
  • Ann Schwarz-Miller

    (Old Dominion University)

  • Wayne IL Talley

    (Economics Department, Old Dominion University)

Abstract

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.

Suggested Citation

  • Ann Schwarz-Miller & Wayne IL Talley, 2000. "Motor Bus Deregulation and the Gender Wage Gap: A Test of the Becker Hypothesis," Eastern Economic Journal, Eastern Economic Association, vol. 26(2), pages 145-156, Spring.
    • Handle: RePEc:eej:eeconj:v:26:y:2000:i:2:p:145-156
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    File URL: http://web.holycross.edu/RePEc/eej/Archive/Volume26/V26N2P145_156.pdf
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    References listed on IDEAS

    as
    1. John S. Heywood, 1987. "Wage Discrimination and Market Structure," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 9(4), pages 617-628, July.
    2. 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 207-211, February.
    3. Black, Dan A, 1995. "Discrimination in an Equilibrium Search Model," Journal of Labor Economics, University of Chicago Press, vol. 13(2), pages 309-333, April.
    4. Walter Haessel & John Palmer, 1978. "Market Power and Employment Discrimination," Journal of Human Resources, University of Wisconsin Press, vol. 13(4), pages 545-560.
    5. 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 133-155, April.
    6. 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.
    7. 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.
    8. Orley Ashenfelter & Timothy Hannan, 1986. "Sex Discrimination and Product Market Competition: The Case of the Banking Industry," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 101(1), pages 149-173.
    9. James Peoples & Lisa Saunders, 1993. "Trucking Deregulation and the Black/White Wage Gap," ILR Review, Cornell University, ILR School, vol. 47(1), pages 23-35, October.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Natália Monteiro, 2009. "Regulatory reform and labour earnings in Portuguese banking," Empirical Economics, Springer, vol. 36(3), pages 557-574, June.
    2. Natália Pimenta Monteiro, 2004. "Regulatory reform and the Portuguese banking labour market: two decades later," NIPE Working Papers 10/2004, NIPE - Universidade do Minho.

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    More about this item

    Keywords

    Bus; Deregulation; Discrimination; Female; Gender; Transportation;
    All these keywords.

    JEL classification:

    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L92 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Railroads and Other Surface Transportation
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

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