THE IMPACT OF UNIONIZATION ON MOTOR CARRIER COSTS

Union trucking firms have significantly different cost structures than non-union firms. Further, average costs for union firms are higher th an for non-union firms even after controlling for higher unionized lab or costs. The translog cost function approach used here incorporates a unique dummy variable technique to test not only for overall differen ces in union/non-union costs, but also to identify which individual co st function parameters differ between the two types of firms. Results suggest that unionized trucking firms are at a competitive disadvantag e in the less regulated, post-1980 trucking industry.