Airline Deregulation and Industry Wage Levels

James Peoples

Eastern Economic Journal, 1990, vol. 16, issue 1, 49-58

Abstract: This study uses data from 1977 and 1984 March Current Population Surveys to explore changes in airline wage premiums after deregulation. The findings show that for 1977 and 1984 high levels of work force unionization and industry concentration contributed to the above average national wage position in airlines. However, in 1984, unlike the situation in 1977, airline employees received wage rates similar to their counterparts in highly unionized and concentrated industries. The wage findings are indicative of the increasingly competitive airline industry, the lack of industrywide labor contracts in this industry, and the less lenient view of the federal government toward airline strikes.

Date: 1990
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