Industry research

How wage inequality is measured in the Airline Industry

The airline industry is currently facing problems regarding wage inequality among its workers . To further elaborate on this subject , I have reviewed two articles that may help explain the issue . The first article is from the works of Hirsch and Macpherson entitled , Earnings Rents , and Competition in the Airline Labor Market

The article started with describing how the airline industry in the United States was deregulated during October 28 , 1978 . After the regulation , the wages of the airline industry workers changed only a

br little . However , analysis showed that during the later part of the 1980 's , the wages of the airline industry workers decreased . After the deregulation , the airline industry ventured into a more competitive market . This was done to increase efficiency . However , increasing the competitiveness in the market could decrease the labor rents and union bargaining power of the workers

Wage inequality was measured by first estimating the standard wage differentials based on comparisons of airline laborers with alternative comparison groups . This was conducted after controlling some of the commonly measured worker characteristics . Then , an expanded differentials , including the skill requirements and various working conditions in both airline and non-airline jobs were gathered . Then a separate analysis was conducted to measure how much of the effects on union and non-union earnings of labor union resulted in the airline premium . Lastly , longitudinal analysis , which is examining different aspects of the course over time , of airline entrants and leavers , as well as changes over time in wage distribution in the airline industry was presented

The second article is from David Card . It is titled , Deregulation and Labor Earnings in the Airline Industry . The study aimed to analyze the effect of deregulation of the airline industry on the wages of its employees . Microdata from the 1980 and 1990 Censuses showed a 10 percent decrease in the wages of airline workers after deregulation specifically pilots and flight attendants . Card (1996 ) stated in his that deregulation of the industry and the unfavorable economic conditions during early stages of the 1980s had direct and pressing impacts on the labor market for pilots , flight attendants , and other airline laborers

To analyze the differentials or the inequality of the labor earnings in the airline industry , the study made use of secondary data from the Census and from other related labor statistical groups . To measure the degree of the wage inequality , a comparison on the wages of the airline workers during the regulated era and the unregulated era was done During the regulated era , airline industry laborers were considered to be the highest paid workers in the market . Results showed that deregulation might be expected to lead to a fall in the average earnings of airline workers , while causing wage dispersion in the wages of those within the firm which therefore increases the income inequality because it widens the gap in the incomes of the airline laborers

Various analyses for the trends in the wages or earnings of...