Trucking Deregulation and Labor Earnings: Is the Union Premium a Compensating Differential?

Barry Hirsch ()

Journal of Labor Economics, 1993, vol. 11, issue 2, 279-301

Abstract: This article examines wage determination among union and nonunion truck drivers using the ninety-six monthly Current Population Surveys for 1983-90. Union density in the previously regulated for-hire sector of the trucking industry fell from about 60 percent during the regulatory period of the 1970s to about 25 percent by 1990. Union log wage premiums fell from 0.40 in the 1970s to 0.30 or below in the 1980s. Longitudinal estimates from multiple panels for 1983-84 through 1989-90 suggest far smaller union premiums, supporting the thesis that part of the wage differential following deregulation is a compensating premium for driver quality. Copyright 1993 by University of Chicago Press.

Date: 1993
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