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Earnings, Rents, and Competition in the Airline Labor Market

Listed author(s):
  • Hirsch, Barry T
  • Macpherson, David A

Transformation of the airline labor market continues long after deregulation. Airline wages changed little immediately following deregulation, implying either the absence of regulatory rents or maintenance of product market power and union strength. Analysis for 1973-97, however, indicates that prior to recent gains, the relative earnings of air transport workers decreased markedly during the latter half of the 1980s and early 1990s. Some of the earnings advantage of airline workers represents returns to occupational skills and worker-specific quality. Labor rents are attributable largely to union bargaining power, which in turn is constrained by the financial health of carriers. Copyright 2000 by University of Chicago Press.

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File URL: http://dx.doi.org/10.1086/209953
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Article provided by University of Chicago Press in its journal Journal of Labor Economics.

Volume (Year): 18 (2000)
Issue (Month): 1 (January)
Pages: 125-155

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Handle: RePEc:ucp:jlabec:v:18:y:2000:i:1:p:125-55
Contact details of provider: Web page: http://www.journals.uchicago.edu/JOLE/

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  1. Neal, Derek, 1995. "Industry-Specific Human Capital: Evidence from Displaced Workers," Journal of Labor Economics, University of Chicago Press, vol. 13(4), pages 653-677, October.
  2. Alan B. Krueger, 1997. "Labor Market Shifts and the Price Puzzle Revisited," NBER Working Papers 5924, National Bureau of Economic Research, Inc.
  3. 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.
  4. repec:pri:indrel:dsp01bc386j21k is not listed on IDEAS
  5. repec:fth:prinin:375 is not listed on IDEAS
  6. Robert Gibbons & Lawrence Katz, 1992. "Does Unmeasured Ability Explain Inter-Industry Wage Differentials?," Review of Economic Studies, Oxford University Press, vol. 59(3), pages 515-535.
  7. David Card, 1986. "The Impact of Deregulation on the Employment and Wages of Airline Mechanics," ILR Review, Cornell University, ILR School, vol. 39(4), pages 527-538, July.
  8. Winston, Clifford, 1993. "Economic Deregulation: Days of Reckoning for Microeconomists," Journal of Economic Literature, American Economic Association, vol. 31(3), pages 1263-1289, September.
  9. Alan B. Krueger, 1997. "Labor Market Shifts and the Price Puzzle Revisited," Working Papers 754, Princeton University, Department of Economics, Industrial Relations Section..
  10. Wessels, Walter J, 1994. "Do Unionized Firms Hire Better Workers?," Economic Inquiry, Western Economic Association International, vol. 32(4), pages 616-629, October.
  11. 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.
  12. Brown, Charles & Medoff, James, 1989. "The Employer Size-Wage Effect," Journal of Political Economy, University of Chicago Press, vol. 97(5), pages 1027-1059, October.
  13. Moulton, Brent R, 1990. "An Illustration of a Pitfall in Estimating the Effects of Aggregate Variables on Micro Unit," The Review of Economics and Statistics, MIT Press, vol. 72(2), pages 334-338, May.
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