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Mergers and Bargaining in the Airline Industry
Author(s) -
Crémieux PierreYves,
Audenrode Marc
Publication year - 1996
Publication title -
labour
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.403
H-Index - 34
eISSN - 1467-9914
pISSN - 1121-7081
DOI - 10.1111/j.1467-9914.1996.tb00086.x
Subject(s) - earnings , business , demographic economics , aircraft industry , labour economics , economics , aeronautics , finance , engineering
Using newly collected firm‐level data, this paper analyzes the effect of mergers on the earnings and employment of pilots, flight attendants, and mechanics in the US airline industry between 1971 and 1990. The results show that mergers had a significant and largely negative impact on flight attendants’earnings but have a limited impact on mechanics’and none on pilots’earnings. Mergers have no significant direct impact on employment for pilots or mechanics but affected flight attendants’employment negatively. The indirect impact of reduced activity following mergers did lead to an overall negative impact on employment for pilots and significantly increased the magnitude of the effect for flight attendants.