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Shipping Deregulation's Wage Effect on Low and High Wage Dockworkers

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  • Peoples, James
  • Talley, Wayne K.
  • Thanabordeekij, Pithoon

Abstract

This paper examines regional wage patterns of low- and high-wage dockworkers following deregulation. Findings reveal significant wage premium increases for low-wage dockworkers residing in the East and West Coasts following the initial deregulation in 1984. These premium gains surpass post-deregulation gains of high-wage dockworkers. Dockworker premiums do not change significantly for individuals residing in the southern U.S. These findings suggest that low-wage nonunion competition played a key role suppressing wages in the southern U.S. Unparallel union bargaining power in the East and West Coasts contributed to the high-relative wage gains of low-skilled dockworkers. In contrast to the post-1984 deregulation wage patterns, high-wage dockworkers received larger premium gains compared to the gains for low-wage dockworkers following passage of the Ocean Shipping Reform Act of 1998. These post-1998 findings support the hypothesis that the challenges in employing high-skilled dockworkers in the late 1990s contributed to their relative-wage gains.

Suggested Citation

  • 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.
    • Handle: RePEc:eee:retrec:v:16:y:2006:i:1:p:219-249
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    References listed on IDEAS

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    2. Talley Wayne K., 2004. "Wage Differentials of Intermodal Transportation Carriers and Ports: Deregulation Versus Regulation," Review of Network Economics, De Gruyter, vol. 3(2), pages 1-21, June.
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