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Airline Deregulation and Industry Wage Levels

Author

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  • James Peoples, Jr.

    (Rutgers University)

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.

Suggested Citation

  • James Peoples, Jr., 1990. "Airline Deregulation and Industry Wage Levels," Eastern Economic Journal, Eastern Economic Association, vol. 16(1), pages 49-58, Jan-Mar.
    • Handle: RePEc:eej:eeconj:v:16:y:1990:i:1:p:49-58
    as

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    File URL: http://web.holycross.edu/RePEc/eej/Archive/Volume16/V16N1P49_58.pdf
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    References listed on IDEAS

    as
    1. Ashenfelter, Orley & Johnson, George E, 1972. "Unionism, Relative Wages, and Labor Quality in U.S. Manufacturing Industries," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 13(3), pages 488-508, October.
    2. Theodore E. Keeler, 1972. "Airline Regulation and Market Performance," Bell Journal of Economics, The RAND Corporation, vol. 3(2), pages 399-424, Autumn.
    3. Wallace Hendricks & Peter Feuille & Carol Szerszen, 1980. "Regulation, Deregulation, and Collective Bargaining in Airlines," ILR Review, Cornell University, ILR School, vol. 34(1), pages 67-81, October.
    4. David Card, 1986. "The Impact of Deregulation on the Employment and Wages of Airline Mechanics," ILR Review, Cornell University, ILR School, vol. 39(4), pages 527-538, July.
    5. Ehrenberg, Ronald G., 1979. "The Regulatory Process and Labor Earnings," Elsevier Monographs, Elsevier, edition 1, number 9780122332500 edited by Freeman, Richard B..
    6. Richard B. Freeman, 1983. "Unionism, Price-Cost Margins, and the Return to Capital," NBER Working Papers 1164, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Pierre-Yves Crémieux, 1996. "Le marché du travail et l'évolution des salaires dans le transport aérien aux États-Unis : l'effet de la déréglementation de 1978," Économie et Prévision, Programme National Persée, vol. 126(5), pages 45-61.
    2. Martin J. Conyon & Sourafel Girma & Steve Thompson & Peter W. Wright, 2004. "Do Wages Rise or Fall Following Merger?," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 66(5), pages 847-862, December.

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