The Impact of Unionization on Motor Carrier Costs

Joe Kerkvliet and B Starr McMullen

Economic Inquiry, 1997, vol. 35, issue 2, 271-84

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.

Date: 1997
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