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The Impact of Unionization on Motor Carrier Costs

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  • Kerkvliet, Joe
  • McMullen, B Starr

Abstract

Union trucking firms have significantly different cost structures than nonunion firms. Further, average costs for union firms are higher than for nonunion firms even after controlling for higher unionized labor costs. The translog cost function approach used here incorporates a unique dummy variable technique to test not only for overall differences in union/nonunion costs but also to identify which individual cost function parameters differ between the two types of firms. Results suggest that unionized trucking firms are not at a competitive disadvantage in the less regulated, post-1980 trucking industry. Copyright 1997 by Oxford University Press.

Suggested Citation

  • Kerkvliet, Joe & McMullen, B Starr, 1997. "The Impact of Unionization on Motor Carrier Costs," Economic Inquiry, Western Economic Association International, vol. 35(2), pages 271-284, April.
  • Handle: RePEc:oup:ecinqu:v:35:y:1997:i:2:p:271-84
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    References listed on IDEAS

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    Cited by:

    1. Lila J. Truett & Dale B. Truett, 2003. "The Italian Automotive Industry and Economies of Scale," Contemporary Economic Policy, Western Economic Association International, vol. 21(3), pages 329-337, July.
    2. Truett, Lila J. & Truett, Dale B., 2014. "The South Korean auto industry's path to maturity," International Review of Economics & Finance, Elsevier, vol. 31(C), pages 86-94.
    3. Truett, Lila J. & Truett, Dale B., 2010. "Globalization challenges for the Mexican textile industry," International Review of Economics & Finance, Elsevier, vol. 19(4), pages 733-741, October.
    4. 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.
    5. Dammen, Sarah J., 2004. "The Effects of Safety Practices, Technology Adoption, and Firm Characteristics on Motor Carrier Safety," Journal of the Transportation Research Forum, Transportation Research Forum, vol. 44(1).
    6. Lila J. Truett & Dale B. Truett, "undated". "The South Korean Auto Industry: All Grown Up Now? Since 1962, South Korea has recognized the motor vehicle industry as a critical industry for economic development. The government has been closely inv," Working Papers 0011, College of Business, University of Texas at San Antonio.

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