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Trucking Regulation, Unionization, and Labor Earnings: 1973-85

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  • Barry T. Hirsch

Abstract

Current Population Survey (CPS) data for the years 1973 to 1985 are used to examine the earnings of union and nonunion truck drivers during and after ICC regulation of the motor carrier industry. Hourly earnings for union drivers fell following deregulation, whereas changes among nonunion drivers closely mirrored economy-wide changes among nonunion operatives. Significant narrowing of the union-nonunion wage differential occurred primarily in the previously regulated for-hire sector of the trucking industry and in those regions with the most extensive nonunion operations. Despite some narrowing, the union premium remained sizable following deregulation. Significantly larger wage concessions would have been necessary to have prevented the marked decline in union trucking and Teamster membership that followed deregulation.

Suggested Citation

  • 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.
    • Handle: RePEc:uwp:jhriss:v:23:y:1988:i:3:p:296-319
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    Cited by:

    1. Peoples, James & Talley, Wayne K. & Thanabordeekij, Pithoon, 2006. "Shipping Deregulation's Wage Effect on Low and High Wage Dockworkers," Research in Transportation Economics, Elsevier, vol. 16(1), pages 219-249, January.
    2. Monaco, Kristen A. & Brooks, Taggert J., 2001. "Deregulation and wages in trucking: A time series phenomenon -- A time series approach," Research in Transportation Economics, Elsevier, vol. 6(1), pages 55-69, January.
    3. Burks, Stephen V. & Guy, Frederick, 2012. "What Are Over-the-Road Truckers Paid For? Evidence from an Exogenous Regulatory Change on the Role of Social Comparisons and Work Organization in Wage Determination," IZA Discussion Papers 6375, Institute of Labor Economics (IZA).
    4. Dale Belman & Kristen Monaco, 2005. "Are truck drivers underpaid?," Applied Economics Letters, Taylor & Francis Journals, vol. 12(1), pages 13-18.
    5. Trick, Steven & Peoples, James, 2012. "Union compensation following intrastate deregulation: Evidence from the US trucking industry," Transport Policy, Elsevier, vol. 24(C), pages 10-18.
    6. Rodriguez, Daniel A. & Rocha, Marta & Belzer, Michael H., 2004. "3. The Effects Of Trucking Firm Financial Performance On Driver Safety," Research in Transportation Economics, Elsevier, vol. 10(1), pages 35-55, January.
    7. Barry T. Hirsch, 2008. "Wage Gaps Large and Small," Southern Economic Journal, John Wiley & Sons, vol. 74(4), pages 914-933, April.
    8. David E. Davis & Wesley W. Wilson, 2003. "Wages in Rail Markets: Deregulation, Mergers, and Changing Networks Characteristics," Southern Economic Journal, John Wiley & Sons, vol. 69(4), pages 865-885, April.
    9. Xiaowen Fu & James Peoples, 2018. "Introduction and Overview," Advances in Airline Economics, in: Airline Economics in Asia, volume 7, pages 1-8, Emerald Group Publishing Limited.
    10. Sumit K. Majumdar, 2011. "Cross Subsidization And Telecommunications Sector Wages," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 82(1), pages 1-24, March.
    11. Sumit K. Majumdar & Rabih Moussawi & Ulku Yaylacicegi, 2019. "Mergers and Wages in Digital Networks: a Public Interest Perspective," Journal of Industry, Competition and Trade, Springer, vol. 19(4), pages 583-615, December.
    12. Bitzan, John D., 2004. "8. Earnings Of Low To Mid-Level Managers In The Airline, Trucking, And Railroad Industries," Research in Transportation Economics, Elsevier, vol. 10(1), pages 165-189, January.
    13. Ariel J. Binder & John Bound, 2019. "The Declining Labor Market Prospects of Less-Educated Men," Journal of Economic Perspectives, American Economic Association, vol. 33(2), pages 163-190, Spring.
    14. Richards, Timothy J. & Rutledge, Zachariah, 2023. "COVID-19, Truck Rates, and Trucking Shortages," 2023 Annual Meeting, July 23-25, Washington D.C. 335435, Agricultural and Applied Economics Association.
    15. Schwarz-Miller, Ann & Talley, Wayne K., 1997. "Motor Bus Deregulation and Racial/Gender Effects: Earnings and Employment," Transportation Research Forum Proceedings 1990s 319179, Transportation Research Forum.
    16. Good, D. & Nadiri, M.I. & Sickles, R., 1996. "Index Number and Factor Demand Approaches to the Estimarion of Productivity," Working Papers 96-34, C.V. Starr Center for Applied Economics, New York University.
    17. James Peoples, 2013. "The Legacy of the Interstate Commerce Act and Labor: Legislation, Unionization, and Labor Earnings in Surface Transportation Services," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 43(1), pages 63-84, August.
    18. 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.
    19. 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.
    20. Peoples, James & Talley, Wayne K, 2004. "9. Owner-Operator Truck Driver Earnings And Employment: Port Cities And Deregulation," Research in Transportation Economics, Elsevier, vol. 10(1), pages 191-213, January.
    21. Barde, Sylvain & Klein, Alexander, 2021. "Transportation Costs in the Age of Highways: Evidence from United States 1955-2010," CAGE Online Working Paper Series 597, Competitive Advantage in the Global Economy (CAGE).
    22. Peoples, James & Talley, Wayne K., 2007. "Earnings Differentials of Railroad Managers and Labor," Research in Transportation Economics, Elsevier, vol. 20(1), pages 259-281, January.
    23. Hirsch, Barry T & Macpherson, David A, 2000. "Earnings, Rents, and Competition in the Airline Labor Market," Journal of Labor Economics, University of Chicago Press, vol. 18(1), pages 125-155, January.
    24. 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.

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