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The Effects of Deregulation, De-Unionization, Technology, and Human Capital on the Work and Work Lives of Truck Drivers

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  • Dale L. Belman
  • Kristen A. Monaco

Abstract

The earnings of truck drivers fell by 21% between 1973 and 1995. Using Current Population Survey data, the authors find that deregulation accounted for one-third of the decline in drivers' wages, with a larger negative effect for non-union workers. Economic forces that broadly affected the blue-collar economy, proxied by the manufacturing wage, accounted for more than two-thirds of the decline. Finally, using unique survey data, the authors explore the effects of factors frequently cited as sources of blue-collar wage decline. This analysis indicates that only one new technology, satellite communication systems, had meaningful effects on drivers' earnings, which rose as a consequence of superior efficiency and work intensification. Union membership remains an important determinant of wages, with members earning 18% to 21% more than their non-union counterparts. The authors conclude that the primary sources of wage decline and increased wage inequality have been deregulation, de-unionization, and a declining manufacturing wage.

Suggested Citation

  • Dale L. Belman & Kristen A. Monaco, 2001. "The Effects of Deregulation, De-Unionization, Technology, and Human Capital on the Work and Work Lives of Truck Drivers," ILR Review, Cornell University, ILR School, vol. 54(2A), pages 502-524, March.
    • Handle: RePEc:sae:ilrrev:v:54:y:2001:i:2a:p:502-524
    DOI: 10.1177/001979390105400227
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    References listed on IDEAS

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    Cited by:

    1. de Vries, Jelle & de Koster, René & Rijsdijk, Serge & Roy, Debjit, 2017. "Determinants of safe and productive truck driving: Empirical evidence from long-haul cargo transport," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 97(C), pages 113-131.
    2. Natália Monteiro, 2009. "Regulatory reform and labour earnings in Portuguese banking," Empirical Economics, Springer, vol. 36(3), pages 557-574, June.
    3. Dale Belman & Kristen Monaco, 2005. "Are truck drivers underpaid?," Applied Economics Letters, Taylor & Francis Journals, vol. 12(1), pages 13-18.
    4. Thanos Fragkandreas, 2022. "Three Decades of Research on Innovation and Inequality: Causal Scenarios, Explanatory Factors, and Suggestions," Working Papers 60, Birkbeck Centre for Innovation Management Research, revised Feb 2022.
    5. Berger, Thor & Chen, Chinchih & Frey, Carl Benedikt, 2018. "Drivers of disruption? Estimating the Uber effect," European Economic Review, Elsevier, vol. 110(C), pages 197-210.
    6. Burks, Stephen V. & Carpenter, Jeffrey P. & Götte, Lorenz & Monaco, Kristen & Porter, Kay & Rustichini, Aldo, 2007. "Using Behavioral Economic Experiments at a Large Motor Carrier: The Context and Design of the Truckers and Turnover Project," IZA Discussion Papers 2789, Institute of Labor Economics (IZA).
    7. Trick, Steven & Peoples, James & Ross, Anthony, 2021. "Driver turnover in the trucking industry: What's the cost of reducing driver quit rates?," Research in Transportation Economics, Elsevier, vol. 89(C).
    8. Michael R Faulkiner & Michael H Belzer, 2019. "Returns to compensation in trucking: Does safety pay?," The Economic and Labour Relations Review, , vol. 30(2), pages 262-284, June.
    9. Boyer, Kenneth D. & Burks, Stephen V., 2007. "Stuck in the Slow Lane: Traffic Composition and the Measurement of Labor Productivity in the U.S. Trucking Industry," IZA Discussion Papers 2576, Institute of Labor Economics (IZA).
    10. Michael H. Belzer & Peter F. Swan, 2011. "Supply Chain Security: Agency Theory and Port Drayage Drivers," The Economic and Labour Relations Review, , vol. 22(1), pages 41-63, May.
    11. Argyro Avgoustaki & Hans T. W. Frankort, 2019. "Implications of Work Effort and Discretion for Employee Well-Being and Career-Related Outcomes: An Integrative Assessment," ILR Review, Cornell University, ILR School, vol. 72(3), pages 636-661, May.
    12. Alexey Levkov, 2010. "Branching of banks and union decline," Supervisory Research and Analysis Working Papers QAU10-7, Federal Reserve Bank of Boston.
    13. 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.
    14. Barde, Sylvain & Klein, Alexander, 2021. "Transportation Costs in the Age of Highways: Evidence from United States 1955-2010," CAGE Online Working Paper Series 597, Competitive Advantage in the Global Economy (CAGE).
    15. Zhuowu Zhang & Emrah Demir & Robert Mason & Carla Cairano-Gilfedder, 2023. "Understanding freight drivers' behavior and the impact on vehicles' fuel consumption and CO2e emissions," Operational Research, Springer, vol. 23(4), pages 1-35, December.
    16. Malte Borcherding & Christian Grund, 2003. "Tariforientierung, Humankapitalinvestitionen und subjektive Leistungsbewertung — eine empirische Studie," Schmalenbach Journal of Business Research, Springer, vol. 55(5), pages 482-509, August.
    17. Daniel A. Rodríguez & Felipe Targa & Michael H. Belzer, 2006. "Pay Incentives and Truck Driver Safety: A Case Study," ILR Review, Cornell University, ILR School, vol. 59(2), pages 205-225, January.
    18. Natália Pimenta Monteiro, 2004. "Regulatory reform and the Portuguese banking labour market: two decades later," NIPE Working Papers 10/2004, NIPE - Universidade do Minho.
    19. Kawaguchi, Akira & Mizuno, Keizo, 2011. "Deregulation and labour earnings: Three motor carrier industries in Japan," Labour Economics, Elsevier, vol. 18(4), pages 441-452, August.
    20. Peterson, Steven, 2006. "Differences in Truck Driver Labor Supply Between Owner-Operators and Employees," 47th Annual Transportation Research Forum, New York, New York, March 23-25, 2006 207957, Transportation Research Forum.
    21. Stephen V. Burks & Jeffrey Carpenter & Lorenz Goette & Kristen Monaco & Aldo Rustichini & Kay Porter, 2007. "Using Behavioral Economic Field Experiments at a Large Motor Carrier: The Context and Design of the Truckers and Turnover Project," NBER Working Papers 12976, National Bureau of Economic Research, Inc.

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