This study was motivated by the notion that increased competition arising from regulatory reform and the relaxation of regulatory barriers contributed to a change in employment shares across driver categories in the motor carrier industry. Special attention is given to the role of changing relative labour costs as a determinant of sectoral employment patterns, since increased competition and lower entry barriers eroded regulatory rents to unionized labour. The findings reveal that despite their continuing higher labour costs, company drivers in the for-hire sector experienced the greatest employment share gains following deregulation. Company drivers in the private sector experienced a significant employment share decline, due to their shrinking labour cost advantage and the slower growth of the private sector following deregulation. (A)
Abstract