AGESA, Jacqueline

Deregulation and the racial composition of airlines - 2001

Economic theory suggests that the enhanced product market competition of deregulation reduces employers` ability to discriminate when hiring. Recent studies of the effect of deregulation on racial employment in the naturally competitive truncking industry find that deregulation increased minority employment. This study examines the effect of deregulation on racial employment in the airline industry . Because deregulation transformed airlines from wasteful service competition to rigorous price competion, deregulation`s effect on racial hiring in this continuously competitive industry is not apparent. This study finds that deregulation only modestly changed the racial composition of major ariline occupations, which suggests that the change in market struture as a result of deregulation may largely determine the effect of regulatory reform on the racial composition of an industry