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Deregulation and the Competitive Fringe: Owner-Operators in the Trucking Industry

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  • Peoples, James
  • Peteraf, Margaret

Abstract

This paper assesses the direct and indirect effects of regulatory reform in the trucking industry on the employment of owner-operators. We utilize a probit estimation form derived from driver utility functions to estimate the change in the probability that a truck driver is an owner-operator following deregulation. We find that a representative driver with mean characteristics is 155.6 percent more likely to choose employment as an owner-operator in the deregulated environment. Thirty-six percentage points of this increase is due to the indirect effects of deregulation, which operate primarily through changes in wage differentials and unionization. The direct effect of deregulation accounts for a 120 percent increase in the probability of a driver choosing employment as an owner-operator. Copyright 1995 by Kluwer Academic Publishers

Suggested Citation

  • Peoples, James & Peteraf, Margaret, 1995. "Deregulation and the Competitive Fringe: Owner-Operators in the Trucking Industry," Journal of Regulatory Economics, Springer, vol. 7(1), pages 27-42, January.
  • Handle: RePEc:kap:regeco:v:7:y:1995:i:1:p:27-42
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    Cited by:

    1. Francine Lafontaine & Laura Malaguzzi Valeri, 2009. "The deregulation of international trucking in the European Union: form and effect," Journal of Regulatory Economics, Springer, vol. 35(1), pages 19-44, February.
    2. Alberto Fernández & Benito Arruñada & Manuel González, 1998. "Quasi-integration in less-than-truckload trucking," Economics Working Papers 292, Department of Economics and Business, Universitat Pompeu Fabra, revised Jul 2002.

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