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Deregulation and the Racial Composition of Airlines

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  • Jacqueline Agesa

    (The Lewis College of Business, Marshall University)

Abstract

Economic theory suggests that the enhanced product market competition of deregulation reduces employers' ability to discriminate when hiring. Recent studies of the effect of deregulation on racial employment in the naturally competitive trucking industry find that deregulation increased minority employment. This study examines the effect of deregulation on racial employment in the airline industry. Because deregulation transformed airlines from wasteful service competition to rigorous price competition, deregulation's effect on racial hiring in this continuously competitive industry is not apparent. This study finds that deregulation only modestly changed the racial composition of major airline occupations, which suggests that the change in market structure as a result of deregulation may largely determine the effect of regulatory reform on the racial composition of an industry. © 2001 by the Association for Public Policy Analysis and Management.

Suggested Citation

  • Jacqueline Agesa, 2001. "Deregulation and the Racial Composition of Airlines," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 20(2), pages 223-237.
  • Handle: RePEc:wly:jpamgt:v:20:y:2001:i:2:p:223-237 DOI: 10.1002/pam.2023
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    References listed on IDEAS

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    1. Ashenfelter, Orley, 1972. "Racial Discrimination and Trade Unionism," Journal of Political Economy, University of Chicago Press, vol. 80(3), pages 435-464, May-June.
    2. Shepherd, William G & Levin, Sharon G, 1973. "Managerial Discrimination in Large Firms," The Review of Economics and Statistics, MIT Press, vol. 55(4), pages 412-422, November.
    3. Jacqueline Agesa, 1998. "The impact of deregulation on employment discrimination in the trucking industry," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 26(3), pages 288-303, September.
    4. Clifford Winston, 1998. "U.S. Industry Adjustment to Economic Deregulation," Journal of Economic Perspectives, American Economic Association, vol. 12(3), pages 89-110, Summer.
    5. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
    6. Comanor, William S, 1973. "Racial Discrimination in American Industry," Economica, London School of Economics and Political Science, vol. 40(160), pages 363-378, November.
    7. Walter Haessel & John Palmer, 1978. "Market Power and Employment Discrimination," Journal of Human Resources, University of Wisconsin Press, vol. 13(4), pages 545-560.
    8. Lee, Lung-Fei, 1978. "Unionism and Wage Rates: A Simultaneous Equations Model with Qualitative and Limited Dependent Variables," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 19(2), pages 415-433, June.
    9. 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.
    10. 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.
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