The Impacts of Deregulation on Railroad Labor

This study examines the impacts that railroad and trucking deregulation had on rail labor earnings and employment. Although the impacts that deregulation has had on pricing. service, profits, and productivity are fairly well understood, its impacts on rail wages and employment have not been well understood. In examining the impacts of deregulation on rail labor earning , the study finds that the real earnings of operating employees in the rail industry, which were steadily declining prior to deregulation, have steadily increased following deregulation. Similarly, the earnings premiums of rail operating employees over similar employees in manufacturing have also increased at a steady rate following deregulation. These results are not surprising in light of the fact that railroad profits and productivity have also increased steadily since deregulation. In examining the impacts of deregulation on employment, the study find a sharp decline in operating employment as a result of deregulation, and a considerable increase in the productivity of labor.