are truck drivers underpaid?

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This article was downloaded by: [Lancaster University Library] On: 13 October 2014, At: 06:19 Publisher: Routledge Informa Ltd Registered in England and Wales Registered Number: 1072954 Registered office: Mortimer House, 37-41 Mortimer Street, London W1T 3JH, UK Applied Economics Letters Publication details, including instructions for authors and subscription information: http://www.tandfonline.com/loi/rael20 Are truck drivers underpaid? Dale Belman a & Kristen Monaco b a School of Labour and Industrial Relations , South Kedzie Hall, Michigan State University , East Lansing, MI 48824-1032, USA b Department of Economics , California State University Long Beach , 1250 Bellflower Blvd, Long Beach, CA 90840, USA c Department of Economics , California State University Long Beach , 1250 Bellflower Blvd, Long Beach, CA 90840, USA E-mail: Published online: 16 Aug 2006. To cite this article: Dale Belman & Kristen Monaco (2005) Are truck drivers underpaid?, Applied Economics Letters, 12:1, 13-18, DOI: 10.1080/1350485042000291411 To link to this article: http://dx.doi.org/10.1080/1350485042000291411 PLEASE SCROLL DOWN FOR ARTICLE Taylor & Francis makes every effort to ensure the accuracy of all the information (the “Content”) contained in the publications on our platform. However, Taylor & Francis, our agents, and our licensors make no representations or warranties whatsoever as to the accuracy, completeness, or suitability for any purpose of the Content. Any opinions and views expressed in this publication are the opinions and views of the authors, and are not the views of or endorsed by Taylor & Francis. The accuracy of the Content should not be relied upon and should be independently verified with primary sources of information. Taylor and Francis shall not be liable for any losses, actions, claims, proceedings, demands, costs, expenses, damages, and other liabilities whatsoever or howsoever caused arising directly or indirectly in connection with, in relation to or arising out of the use of the Content. This article may be used for research, teaching, and private study purposes. Any substantial or systematic reproduction, redistribution, reselling, loan, sub-licensing, systematic supply, or distribution in any form to anyone is expressly forbidden. Terms & Conditions of access and use can be found at http:// www.tandfonline.com/page/terms-and-conditions

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Page 1: Are truck drivers underpaid?

This article was downloaded by: [Lancaster University Library]On: 13 October 2014, At: 06:19Publisher: RoutledgeInforma Ltd Registered in England and Wales Registered Number: 1072954 Registered office: Mortimer House,37-41 Mortimer Street, London W1T 3JH, UK

Applied Economics LettersPublication details, including instructions for authors and subscription information:http://www.tandfonline.com/loi/rael20

Are truck drivers underpaid?Dale Belman a & Kristen Monaco ba School of Labour and Industrial Relations , South Kedzie Hall, Michigan State University ,East Lansing, MI 48824-1032, USAb Department of Economics , California State University Long Beach , 1250 Bellflower Blvd,Long Beach, CA 90840, USAc Department of Economics , California State University Long Beach , 1250 Bellflower Blvd,Long Beach, CA 90840, USA E-mail:Published online: 16 Aug 2006.

To cite this article: Dale Belman & Kristen Monaco (2005) Are truck drivers underpaid?, Applied Economics Letters, 12:1,13-18, DOI: 10.1080/1350485042000291411

To link to this article: http://dx.doi.org/10.1080/1350485042000291411

PLEASE SCROLL DOWN FOR ARTICLE

Taylor & Francis makes every effort to ensure the accuracy of all the information (the “Content”) containedin the publications on our platform. However, Taylor & Francis, our agents, and our licensors make norepresentations or warranties whatsoever as to the accuracy, completeness, or suitability for any purpose of theContent. Any opinions and views expressed in this publication are the opinions and views of the authors, andare not the views of or endorsed by Taylor & Francis. The accuracy of the Content should not be relied upon andshould be independently verified with primary sources of information. Taylor and Francis shall not be liable forany losses, actions, claims, proceedings, demands, costs, expenses, damages, and other liabilities whatsoeveror howsoever caused arising directly or indirectly in connection with, in relation to or arising out of the use ofthe Content.

This article may be used for research, teaching, and private study purposes. Any substantial or systematicreproduction, redistribution, reselling, loan, sub-licensing, systematic supply, or distribution in anyform to anyone is expressly forbidden. Terms & Conditions of access and use can be found at http://www.tandfonline.com/page/terms-and-conditions

Page 2: Are truck drivers underpaid?

Are truck drivers underpaid?

Dale Belmana and Kristen Monacob*

aSchool of Labour and Industrial Relations, South Kedzie Hall,Michigan State University, East Lansing, MI 48824-1032, USAbDepartment of Economics, California State University Long Beach,1250 Bellflower Blvd, Long Beach, CA 90840, USA

There is an emerging debate over whether truck drivers are ‘underpaid’given their human capital and working conditions. Using data from the2000 Current Population Survey, the pay differentials between truckdrivers and other blue collar occupations are investigated. While truckdrivers appear to receive a small premium in their hourly wage comparedto workers with similar skill requirements, they receive substantial pre-mium in their weekly wage. This weekly wage differential is primarilythe result of a substantially longer work week.

It is well established in the literature that truckdriving became a less desirable occupation afterderegulation in the late 1970s, when wages plum-meted significantly.1 Average hourly wages foremployee truck drivers fell from $16.00 to $12.72over the period 1979 to 1993, a decrease of 20.5%.2

After bottoming out in 1993, hourly wagesrebounded somewhat and reached $13.70 in 2000, a

7.7% increase.Truck drivers face demanding working condi-

tions, especially long-haul truck drivers (Belzer,2000; Belman et al., forthcoming). Drivers’ hoursof work are governed by Federal Hours of ServiceRegulations which limit drivers to 60 hours of workin a seven day period. It is widely acknowledged inthe industry that long-haul drivers routinely violate

these regulations (Belman et al., 2004; Braver et al.,1992; Beilock, 1995) and often work considerablylonger than 60 hours per week.

In combination with the long hours of work,the post-deregulation decline in driver’s real earningshas fuelled discussion over whether drivers are

adequately compensated for their work. The viewthat drivers’ pay is too low is common currencyamong those who drive, but such views are notlimited to drivers. Belzer (2000) argues that sincederegulation the non-union sector in trucking hastaken on many of the characteristics of sweatshops:below subsistence wages, overwork, and unpleasantand unhealthy working conditions. Others, such as

Corsi (2001) and Beilock (2001, 2003), argue againstsuch conclusions. In particular, Beilock notes thatdrivers’ earnings are closely aligned with those ofindividuals with similar education levels.

How might this issue be addressed? Economictheory suggests that wages are largely determinedby an individual’s productivity, however, pay is notdetermined solely by productivity. The theory of

compensating differentials implies that pay is influ-enced by working conditions. Employers who pro-vide substandard working conditions will be unableto attract a sufficient supply of workers at the goingwage rate, which compels them to offer an incrementto pay to attract workers who would otherwise

*Corresponding author. E-mail: [email protected] on deregulation’s impact on the trucking labour market includes Belzer (1995), Rose (1987), Hirsch (1988, 1993),Hirsch and Macpherson (1998), and Belman and Monaco (2001).2All figures are calculated in 2000 dollars using data from the Current Population Survey. Data from the May Survey is usedin 1979 and from the Outgoing Rotation Groups files after 1979.

Applied Economics Letters ISSN 1350–4851 print/ISSN 1466–4291 online # 2005 Taylor & Francis Group Ltd 13

http://www.tandf.co.uk/journalsDOI: 10.1080/1350485042000291411

Applied Economics Letters, 2005, 12, 13–18

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choose jobs with better conditions. As labour mar-

kets are characterized by a certain level of fluidity,

this ‘compensating differential’ applies not only to

similar jobs within an industry but across industries

and occupations. Given the demanding nature of

truck drivers’ jobs, we would expect that if truck dri-

vers were underpaid their wages would resemble

those of workers with similar human capital working

under better conditions.

One way to determine whether the market is

compensating drivers for their working conditions

is to isolate the component of individuals’ wages

associated with their occupation and compare this

to that of similar occupations.3 This is done by

estimating a wage model with an indicator variable

for each occupation but no overall intercept. The

coefficient on the occupation indicator variable is

the ‘occupational wage component,’ which reflects

the market valuation of the advantages and disadvan-

tages of that occupation. The estimated magnitudes

of the occupation components can be compared

between occupations and judgments made about the

appropriateness of the implied wage differentials.

This approach is necessarily somewhat judgmental

as there is seldom a perfect fit between occupations.

Nevertheless, it provides a workable means of explor-

ing the issue of driver underpay.4

We use data from the year 2000 Current

Population Survey Outgoing Rotation Groups files

to estimate a conventional human capital wage equa-

tion with controls for educational attainment, age,

gender, race and ethnicity, union membership, region

of residence and residence in a metropolitan area. We

limit our sample to those individuals employed in the

private sector only and exclude individuals who are

self-employed. The 99 821 individuals in the resulting

data were engaged in 484 different three-digit private

sector occupations according to the CPS definitions.

The model includes indicator variables for each of

these 484 occupations. To better understand the

occupational effects of employment in trucking, we

separate truck drivers employed in the trucking

industry from those employed in other industries.

We estimate this model using in turn log hourly

earnings and log weekly earnings as the dependent

variable, and report results for each of these respec-

tively in Tables 1 and 2.5 We use the log wage

estimates to construct predictions of the hourly

wage by occupation, and report these in the tables.

The predictions are standardized for human capital

by calculating the predicted wage at sample mean

human capital characteristics.

For each table, we display the occupational title in

column 1, followed by the occupation code used in

the CPS in column 2, the actual mean hourly earnings

by occupation (unadjusted for human capital or other

characteristics) in dollars in column 3, and by the

earnings predicted by the regression model (calcu-

lated at the mean human capital characteristics),

also in dollars, in column 4. In the next column, we

show the difference between the earnings of drivers in

the trucking industry and each of the other occupa-

tions, including truck driving outside of the trucking

industry, again in dollars. In the sixth column we

present the t-statistic that indicates whether the

difference is statistically significant. The last column

shows the sample size for the occupation, that is the

number of individuals in the sample in each occupa-

tion. In both tables, we restrict ourselves to occupa-

tions that have at least 80 observations to reduce the

effects of sampling variability. We believe that the

occupations in question are a representative subset

of the blue-collar occupations in our data and in

that sense the results in Tables 1 and 2 characterize

the patterns we found in the larger set of occupations.

Table 1 shows that the sample mean hourly

earnings for truck drivers employed in the trucking

industry is $15.67 while the earnings predicted at

sample mean human capital characteristics are

$13.64. A natural initial comparison is with truck

drivers employed outside of the trucking industry.

This ‘occupation’ is comprised of drivers whose

work is similar to that of drivers within motor freight,

but it also includes local delivery drivers in light

trucks, construction drivers and others whose work

and working conditions are quite different from that

3An alternative would be to incorporate measures of working conditions into a conventional human capital model of wages.Although the numeric ratings for occupational characteristics are available from the Dictionary of Occupational Titles orfrom ONET, the incorporation of these measures into wage regressions has been problematic. Because of all these issues, fewarticles in the compensating differentials literature incorporate direct controls for occupational characteristics.4 Further explanation and an example of this approach is provided in Belman et al. (2002).5Hourly earnings are calculated as the ratio of average weekly earnings to actual hours last week. Actual rather than averagehours was used because employees who work irregular schedules report a value of ‘variable hours’ for average hours and thisprecludes calculating an hourly wage. As many truck drivers work irregular schedules, use of average hours would excludelarge numbers of truck drivers. Although actual hours is a noisy representation of average weekly hours for an individual, theestimates of the hourly wage should be reasonably accurate given the size of the sample used in this study.

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Table 1. Comparing hourly earnings across occupations

Adjusted for human capital

Populationoccupationcode

Hourly earnings(unadjusted)

Predictedearnings

Difference fromdrivers in trucking

t-stat. fordifference N

Motor Vehicle OperatorsTruck drivers-trucking industry 804 $15.67 $13.64 1308Truck drivers-other industries $13.11 $12.06 $1.57 2.910 1442

Transportation OperativesSupervisors, motor vehicle opers 803 $17.29 $13.98 �$0.34 �0.374 82Driver-sales workers 806 $14.35 $12.24 $1.40 1.948 155Bus drivers 808 $12.08 $11.36 $2.27 3.677 276Taxi cab drivers/chauffeurs 809 $11.21 $9.94 $3.70 6.063 215

OperativesPunching & stamping press oper 706 $12.33 $11.86 $1.78 2.200 90Grinding & polishing machine oper 709 $12.52 $12.31 $1.32 1.610 94Printing machine operators 734 $14.99 $13.42 $0.21 0.319 287Textile sewing machine operators 744 $8.56 $10.14 $3.49 6.400 423Painting and spraying machine oper 759 $13.78 $13.30 $0.34 0.464 168

Material Moving OperatorsOperating engineers 844 $17.53 $15.75 �$2.11 �2.778 215Crane and tower operators 849 $16.26 $13.62 $0.02 0.020 75Excavating & loading machine oper 853 $16.38 $15.50 �$1.87 �2.042 95Industrial truck/tractor equip oper 856 $12.58 $11.93 $1.70 2.927 485

LabourersStock handlers and baggers 877 $9.39 $9.61 $4.03 7.872 635Freight & material handler, nec 883 $11.81 $11.30 $2.34 4.157 522Labourers, ex construction (8769) 889 $11.65 $11.07 $2.56 4.876 1081

Precision ProductionAutomobile mechanics 505 $15.08 $13.77 �$0.13 �0.220 661Bus, truck, and engine mechanics 507 $16.15 $14.85 �$1.22 �1.797 341Aircraft engine mechanics 508 $18.74 $15.11 �$1.47 �1.716 108Heavy equipment mechanics 516 $16.29 $14.79 �$1.16 �1.511 174HVAC mech 534 $16.97 $14.91 �$1.28 �1.819 277Carpenters 567 $16.38 $14.85 �$1.22 �1.990 1021Electricians 575 $19.46 $16.42 �$2.79 �4.231 728Plumbers, pipefitters & steamfitters 585 $18.28 $15.78 �$2.14 �3.178 468Roofers 595 $15.89 $14.58 �$0.94 �1.172 150Machinists 637 $16.57 $14.53 �$0.90 �1.411 509Butchers and meat cutters 686 $12.38 $12.57 $1.07 1.658 275Bakers 687 $11.27 $11.19 $2.44 3.563 152

Earnings estimates constructed from a log wage equation estimated with the 2000 Outgoing Rotation of the Current Population Survey. The wagedifference is calculated as (estimated earnings of drivers – estimated earnings of other occupation).

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Table 2. Comparing weekly earnings across occupations

–Weekly Earnings

–Adjusted for Human Capital

Populationoccupationcode

Weekly earnings(unadjusted)

Predictedearnings

Difference fromtruck drivers

t-stat. fordifference

Number ofobservations

Motor Vehicle OperatorsTruck drivers-trucking industry 804 $708.54 $603.01 1986Truck drivers-other industries $554.77 $501.88 $101.13 4.105 2032

Transportation OperativesSupervisors, motor vehicle opers 803 $779.94 $615.26 �$12.25 �0.289 106Driver-sales workers 806 $614.17 $527.76 $75.25 2.245 206Bus drivers 808 $421.40 $457.35 $145.67 5.300 383Taxi cab drivers/chauffeurs 809 $484.80 $422.20 $180.82 6.438 362

OperativesPunching & stamping press oper 706 $496.27 $468.49 $134.52 3.793 118Grinding & polishing machine oper 709 $541.34 $501.46 $101.55 2.749 116Printing machine operators 734 $617.18 $536.87 $66.14 2.234 370Textile sewing machine operators 744 $334.91 $418.27 $184.74 7.455 528Painting and spraying machine oper 759 $557.36 $525.21 $77.80 2.390 220

Material Moving OperatorsOperating engineers 844 $709.83 $635.73 �$32.72 �0.962 289Crane and tower operators 849 $701.10 $557.97 $45.05 1.081 90Excavating & loading machine oper 853 $645.86 $618.52 �$15.51 �0.383 151Industrial truck/tractor equip oper 856 $519.41 $471.80 $131.21 5.093 642

LabourersStock handlers and baggers 877 $346.87 $377.27 $225.74 9.947 1555Freight & material handler, nec 883 $454.71 $445.31 $157.71 6.306 856Labourers, ex construction (8769) 889 $442.60 $424.82 $178.19 7.724 1637

Precision ProductionAutomobile mechanics 505 $634.97 $552.78 $50.24 1.849 1104Bus, truck, and engine mechanics 507 $685.64 $601.36 $1.65 0.054 431Aircraft engine mechanics 508 $806.37 $610.29 �$7.28 �0.188 130Heavy equipment mechanics 516 $710.87 $618.19 �$15.18 �0.435 206HVAC mech 534 $693.86 $594.45 $8.56 0.274 424Carpenters 567 $634.02 $563.90 $39.11 1.470 1890Electricians 575 $815.32 $645.98 �$42.97 �1.476 987Plumbers, pipefitters & steamfitters 585 $732.71 $622.91 �$19.90 �0.665 690Roofers 595 $557.59 $558.77 $44.24 1.269 254Machinists 637 $680.48 $577.62 $25.39 0.893 599Butchers and meat cutters 686 $508.31 $511.01 $92.00 3.179 370Bakers 687 $437.58 $419.44 $183.57 6.176 227

Earnings estimates constructed from a log wage equation estimated with the 2000 Outgoing Rotation of the Current Population Survey. The wagedifference is calculated as (estimated earnings of drivers – estimated earnings of other occupation).

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of freight drivers. Average hourly earnings for these

drivers are $13.11, while the predicted hourly earn-ings are $12.06, $1.57 less per hour than drivers inmotor freight. Motor freight drivers earn a premiumof 13.1% over employees with similar skills doing

similar work, but who may be less likely to workextended hours or be away from home for extendedperiods.

Comparing the earnings of drivers in motor freightwith those of other motor vehicle operatives againindicates that motor freight drivers earn a premium

over other drivers. Drivers in motor freight earn$1.40 (11.4%) more than driver sales workers, $2.27(20.1%) per hour more than bus drivers, and $3.70

(37.2%) more than taxi drivers; each difference issignificant at the 5% or better level.6

The balance of Table 1 compares drivers in motorfreight with non-transportation blue-collar occupa-

tions. Individuals in the first group, productionoperatives, are engaged in repetitive operations, typi-cally in a factory or other production facility. Similar

to truck driving, these jobs normally require nomore than a high-school degree and no more thana few months of occupation-specific training and

on-the-job experience. They provide better workingconditions than truck driving, at least with respect tohours of work and rest and time spent at home. Thewages predicted by our regression model indicate

that the hourly earnings of truck drivers in motorfreight are similar to those of painting and printingmachine operators but significantly greater than

that of sewing machine, punch press and grindingmachine operators.

The educational and training requirements for

labourers, manual workers involved in operationssuch as stock and freight handling, are similar tothose of truck drivers but labourers are less likely

to control expensive or powerful machinery.Although labourers’ duties often involve extendedperiods of heavy work, they are not characterizedby the extended working time and time away from

home issues that characterize the work of truckdrivers. Consistent with the lesser requirements ofthe labourers’ position, most labourers are paid

considerably less, between $2.34 and $4.03, thantruck drivers, and these differences are statisticallysignificant.

Material moving occupations involve the operationof heavy equipment. Proficiency in these occupationsmay require extended formal and on-the-job training;

they also involve exposure to weather and hazardous

conditions and may involve periods of time awayfrom home. Our estimates suggest that two of thethree construction occupations are paid more thandrivers (operating engineers and excavating machine

operators), while tower and crane operators havesimilar hourly earnings (crane and tower operators).Industrial truck and tractor equipment operators,

individuals who operate trucks and other movingequipment on factory premises and whose jobsinvolved skills similar to those of truck drivers, are

paid $1.70 per hour less than drivers. The lower payis consistent with a downward adjustment in compen-sation for the better conditions of industrial truck

operators.Finally, precision production occupations are blue-

collar jobs that require advanced vocational training,often three or four year apprenticeships. Some

of these occupations involve exposure to weather,various hazards in construction sites, and may alsorequire that workers spend part of the year away

from home. The predicted earnings of most of theseoccupations are $1.00 to $2.00 per hour more thanthose of truck drivers, and most of these differences

are statistically significant. The occupations for whichearnings are not significantly higher than those ofdrivers are those that do not involve extendedadvanced vocational training (auto mechanics and

roofers) or trades that formerly involved advancedskills but that have evolved into production jobs infactories (butchers, bakers and some machinists).

The pattern that emerges from the hourly wagedata indicates that truck drivers earn more thanworkers in manual occupations with similar training

requirements that do not entail the hours or workingconditions associated with truck driving. In contrast,drivers often earn considerably less than manual

occupations that involve advanced vocational train-ing and that may involve less favourable workingconditions.

The favourable position of truck drivers relative to

occupations with similar training requirementsbecomes more pronounced when weekly earningsare considered (Table 2). Drivers in motor freight

earn considerably more per week than drivers outsideof motor freight, transportation operatives, andlabourers. Drivers’ weekly pay is similar to that of

material moving operatives, including operatingengineers and excavating machine operators, andof precision production workers including aircraft

6A driver sales worker is typically a truck driver who delivers and positions goods. Soft drink and bakery drivers, who unloadtheir trucks and place the goods on store shelves are driver sales workers.

Are truck drivers underpaid? 17

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Page 7: Are truck drivers underpaid?

engine mechanics, plumbers and carpenters. On a

weekly basis, the earnings of drivers closely approach

those of electricians.

In combination, these results imply that truck

drivers are paid somewhat more per hour than

those employed in occupations with similar skill

requirements but better working conditions.

However, the longer weekly work hours of truck

drivers allow them to earn as much per week as

blue-collar workers in occupations requiring consid-

erably more skills and occupational training. An

interpretation of these results is that truck drivers

engage in a Faustian bargain in which they accept

long hours of work in return for earning as much

as workers engaged in manual occupations that

require more training and skills.

Nevertheless, it is possible that markets do not

compensate drivers for the full value of the disutility

associated with their working conditions. Economic

theory proposes that compensating differentials are

driven by the movement of marginal workers out of

employment with worse conditions and into employ-

ment with better conditions. Firms seeking to staunch

the flow of workers away from worse conditions,

must increase their pay, thereby generating a suffi-

cient compensating differential. This mechanism

relies on ease of movement between markets. Differ-

ences in the hours of work regulations between truck-

ing and the balance of the economy can impede such

movement. Movement from a 60-hour week in truck-

ing to a job with similar pay and somewhat better

conditions outside of trucking would be accompanied

by a one-third reduction in weekly take home pay.

The reduction in income associated with migration

out of the industry serves to restrain the arbitraging

of pay and working conditions. Although the

results of this inquiry suggest that driver pay is not

greatly out of line with the nature of their job, the

impediments to the smooth functioning of the

market suggests that moderate underpay may exist

and persist.

References

Beilock, R. (1995) Schedule-induced hours-of-service andspeed limit violations among tractor-trailer drivers,Accident Analysis and Prevention 27, 33–42.

Beilock, R. (2001) Review of: sweatshops on wheels:winners and losers in trucking deregulation,American Economic Review, 39, 1264–5.

Beilock, R. (2003) The elusive sweatshop, Journal of theTransportation Research Forum, 153–65.

Belman, D. L., Monaco, K. A. and Brooks, T. J. Sailorsof the Concrete Sea: A Portrait of Truck Drivers Workand Worklives, Michigan State University Press, EastLansing, forthcoming

Belman, D. L., Heywood, J. S. and Voos, P. (2002) Publicsector earnings comparability: alternative estimatesfor the U.S. Postal Service, Relations Industrielles-Industrial Relations, 57, 687–711.

Belman, D. L. and Monaco, K. A. (2001) The effectsof deregulation, de-unionization, technology, andhuman capital on the work and work lives of truckdrivers, Industrial and Labour Relations Review, 54,502–24.

Belzer, M. H. (1995) Collective bargaining after deregula-tion: do the teamsters still count?, Industrial andLabour Relations Review, 48, 636–55.

Belzer, M. H. (2000) Sweatshops on Wheels: Winners andLosers in Tricking Deregulation, Oxford UniversityPress, Oxford.

Braver, E. R., Preusser, C. W., Preusser, D. F., Baum,H. M., Beilock, R. and Ulmer, R. (1992) Long hoursand fatigue: a survey of tractor-trailer drivers, Journalof Public Health Policy, 13, 341–66.

Corsi, T. (2001) Book Review: Sweatshops on Wheels:Winners and Losers in Trucking Deregulation, Journalof the Transportation Research Forum, 40, 147–9.

Hirsch, B. T. (1988) Trucking regulations, unionization,and labour earnings: 1973–1985, Journal of HumanResources, 23, 296–319.

Hirsch, B. T. (1993) Trucking deregulation and earnings:is the union premium a compensating differential?,Journal of Labour Economics, 11, 279–301.

Hirsch, B. T. and Macpherson, D. A. (1998) Earningsand employment in trucking: deregulating a naturallycompetitive industry, in Regulatory Reform and LabourMarkets (Ed.) J. Peoples, Kluwer AcademicPublishers, Norwell, MA.

Rose, N. L. (1987) Labour rent sharing and regulation:evidence from the trucking industry, Journal ofPolitical Economy, 95, 1146–78.

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