LABOR RENT CAPTURING, EROSION AND RECAPTURING: EVIDENCE FROM THE RAILROAD INDUSTRY

This paper solves the mystery of the inconsistencies in the literature regarding the effect of rail deregulation on union rail wages. It provides evidence of regulatory-rent capturing, erosion and recapturing. The response of union rail wages to both deregulation (i.e., the 4-R and Staggers) acts are examined; the literature in general has not distinguished between these two acts in its investigation of deregulation on rail wages. The wages of union locomotive engineers and conductors during regulation, following the passage of the 4-R Act of 1976, and following passage of the Staggers Act of 1980 are examined. By distinguishing among the regulation and the two deregulation periods, the paper is able to rationalize the apparent inconsistencies in the literature.

Language

  • English

Media Info

  • Pagination: p. 29-43

Subject/Index Terms

Filing Info

  • Accession Number: 00726812
  • Record Type: Publication
  • Report/Paper Numbers: Volume 1
  • Files: TRIS
  • Created Date: Oct 8 1996 12:00AM