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Deregulation and wages in trucking: A time series phenomenon -- A time series approach

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  • Monaco, Kristen A.
  • Brooks, Taggert J.

Abstract

We approach measuring the wage effect of trucking deregulation from a new perspective using time series estimation techniques. The trucking wage is modeled as a function of the manufacturing wage and the relationship between these series is measured over time. We find that the wage premium of trucking over manufacturing is deterministic over time with two structural breaks in May 1980 and June 1984. This suggests that deregulation's effect on the trucking wage was mainly felt between 1980 and 1984. Using the relationship between the trucking wage and manufacturing wage before deregulation, we find that the initial effect of deregulation was to decrease wages 6.99%. This wage effect increased at a decreasing rate over time and by 1996 the cumulative effect was 12.43%.

Suggested Citation

  • Monaco, Kristen A. & Brooks, Taggert J., 2001. "Deregulation and wages in trucking: A time series phenomenon -- A time series approach," Research in Transportation Economics, Elsevier, vol. 6(1), pages 55-69, January.
    • Handle: RePEc:eee:retrec:v:6:y:2001:i:1:p:55-69
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    References listed on IDEAS

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    1. Hirsch, Barry T, 1993. "Trucking Deregulation and Labor Earnings: Is the Union Premium a Compensating Differential?," Journal of Labor Economics, University of Chicago Press, vol. 11(2), pages 279-301, April.
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    6. 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.
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    Cited by:

    1. Natália Pimenta Monteiro, 2004. "Regulatory reform and the Portuguese banking labour market: two decades later," NIPE Working Papers 10/2004, NIPE - Universidade do Minho.
    2. Natália Monteiro, 2009. "Regulatory reform and labour earnings in Portuguese banking," Empirical Economics, Springer, vol. 36(3), pages 557-574, June.
    3. Burks, Stephen V & Guy, Frederick & Maxwell, Benjamin, 2004. "7. Shifting Gears In The Corner Office: Deregulation And The Earnings Of Trucking Executives," Research in Transportation Economics, Elsevier, vol. 10(1), pages 137-164, January.
    4. Habermalz, Steffen & Monaco, Kristen, 2007. "A Post-Deregulation Analysis of Wages in U.S. Freight Transportation," IZA Discussion Papers 2546, Institute of Labor Economics (IZA).
    5. Kenneth D. Boyer & Stephen V. Burks, 2009. "Stuck in the Slow Lane: Undoing Traffic Composition Biases in the Measurement of Trucking Productivity," Southern Economic Journal, John Wiley & Sons, vol. 75(4), pages 1220-1237, April.

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