Airline deregulation and the airline labor market

Thornicroft, Kenneth Wm.

doi:10.1007/bf02685262

Cited by 6 publications

(3 citation statements)

References 4 publications

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“…Data Sources. Since deregulation allowed airlines to make financial and operating decisions without regulatory scrutiny and altered industry labor relations (Cappelli, 1985;Thornicroft, 1989), we chose 1980 as the initial year to evaluate airline wage concessions. We developed a unique data set of postderegulation (1980-89) collective bargaining settlements for nineteen publicly traded domestic airlines by examining collective bargaining settlements reported in the Department of Labor's Current Wage Developments, or announced in the Wall Street Journal, New York Times, or the Washington Post.…”

Section: Methodsmentioning

confidence: 99%

The Capital Market Response to Wage Negotiations in the Airlines

Thomas¹,

Officer²,

Johnson

1995

Industrial Relations

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This paper examines the effect of the announcement of various types of airline wage concessions on stock market value. Our results show that capital markets respond positively to wage cuts but not significantly to wage freezes or two‐tier settlements. However, a significant intraindustry spillover effect from two‐tier agreements was found that suggests that concessions by one carrier decreases the value of the remaining carriers. The results also vary by craft, indicating that labor market and institutional characteristics influence market response.

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Section: Methodsmentioning

confidence: 99%

The Capital Market Response to Wage Negotiations in the Airlines

Thomas¹,

Officer²,

Johnson

1995

Industrial Relations

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“…Moore (1986) reported a possible decrease in the average wage for the industry as a whole between 1976 and 1983. Thornicroft (1989) argued that concession bargaining, two-tiered agreements, and institutional changes unrelated to deregulation reduced compensation and damaged working conditions for all airline employees, at least in the short run.…”

mentioning

confidence: 99%

“…Whereas Card (1989) and Peoples (1990) found a significant negative effect of deregulation on earnings, Dooley (1994), Moore (1986), and Thornicroft (1989) reported little or no long-run effects.…”

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confidence: 99%

The Effect of Deregulation on Employee Earnings: Pilots, Flight Attendants, and Mechanics, 1959–1992

Crémieux¹

1996

ILR Review

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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 longterm 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%.A though several studies have analyzed the effect of the Airline Deregulation Act of 1978 on the structure, competitiveness, and growth of the U.S. airline industry, only a few researchers have estimated the effect of airline deregulation on employee earnings. The results of those few

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The Development of a New Outsourcing Theory Uncovered by Backsourcing

Mederos¹

2021

Palgrave Studies in Accounting and Finance Practice

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Airline deregulation and the airline labor market

Cited by 6 publications

References 4 publications

The Capital Market Response to Wage Negotiations in the Airlines

The Capital Market Response to Wage Negotiations in the Airlines

The Effect of Deregulation on Employee Earnings: Pilots, Flight Attendants, and Mechanics, 1959–1992

The Development of a New Outsourcing Theory Uncovered by Backsourcing

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