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Journal of Economic Perspectives: Vol. 12 No. 3 (Summer 1998)

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Deregulation and the Labor Market

Article Citation

Peoples, James. 1998. "Deregulation and the Labor Market." Journal of Economic Perspectives, 12(3): 111-130.

DOI: 10.1257/jep.12.3.111

Abstract

This paper examines the earnings and employment effect of deregulation in the trucking, railroad, airlines, and telecommunications industries. Findings on nonmanagement workers suggest labor earnings fell sharply in trucking, somewhat in airlines, slightly in telecommunications, and barely in railroads. In contrast, the work force size dramatically increased in trucking and airlines, held steady in telecommunications, and fell dramatically in railroads. The earnings patterns of managers mirrors that of their highly unionized work force. These findings are interpreted as evidence that rent-sharing was not unique to union workers in these industries.

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Authors

Peoples, James (U WI, Milwaukee)

JEL Classifications

L51: Economics of Regulation
J21: Labor Force and Employment, Size, and Structure
J31: Wage Level and Structure; Wage Differentials
J51: Trade Unions: Objectives, Structure, and Effects
L90: Industry Studies: Transportation and Utilities: General

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