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A Time Series Analysis of Wages in Deregulated Industries: A Study of Motor Carriage and Rail

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  • Kristen Monaco
  • Taggert J. Brooks
  • John Bitzan

Abstract

Using time series techniques, we contrast the impact of deregulation in trucking and rail labor markets. During regulation both labor markets were characterized by wages considerably higher than manufacturing wages. In fact, trucking and rail wages had a stable, deterministic relationship prior to deregulation. After deregulation, however, the mean trucking wages fell considerably, approaching manufacturing wages, while rail wages remained relatively constant. We also find that deregulation's negative impact on trucking wages was non-discrete and occurred primarily between 1980 and 1984.

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  • Kristen Monaco & Taggert J. Brooks & John Bitzan, 2006. "A Time Series Analysis of Wages in Deregulated Industries: A Study of Motor Carriage and Rail," Journal of Applied Economics, Taylor & Francis Journals, vol. 9(1), pages 105-118, May.
    • Handle: RePEc:taf:recsxx:v:9:y:2006:i:1:p:105-118
    DOI: 10.1080/15140326.2006.12040640
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    Cited by:

    1. 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.

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    More about this item

    JEL classification:

    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • L92 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Railroads and Other Surface Transportation
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes

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