The Effect of Deregulation on Employee Earnings

Pilots, Flight Attendants, and Mechanics, 1959-1992

Bibliographic Data

ID3218665
AuthorsPierre-Yves Cremieux, Pierre‐Yves Crémieux (0000-0001-6479-0820, corresponding author)
Year1996
Volume49
Issue2
Pages223-242
Publication date1996-01-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueIndustrial and Labor Relations Review (JOURNAL)
Journal identifiersISSN: 0019-7939 • E-ISSN: 2162-271X
PublisherSAGE Publications Inc (PUBLISHER)
DOI10.1177/001979399604900203
OpenAlexW2018135556
LanguageEN
Citations received4
References cited17

Previous studies of the effect of the 1978 Airline Deregulation Act on employee earnings have reported mixed results: some have found no negative long-run effect of deregulation and others have found a negative effect of up to 10%. Most of these studies relied on cross-sectional analysis of a few years' data. This paper, in contrast, examines the long-term trends in airline earnings, based on 34 years of newly collected firm-level data from the Department of Transportation's Form 41 and airline workers' unions. The author finds that although deregulation had no statistically significant effect on the earnings of mechanics, it strongly affected the earnings of flight attendants and pilots. Flight attendants' earnings were at least 12% lower by 1985 and 39% lower by 1992 than they would have been if deregulation had not occurred, and the corresponding shortfalls for pilots were 12% and 22

Business · Demographic economics · Deregulation · Earnings · Economics · Labour economics · Market economy · Accounting · Aviation Industry Analysis and Trends · Defense, Military, and Policy Studies · Labor Movements and Unions · Transport and Economic Policies

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