Federal labor protetons and the privatization of public transit

Federal transportation officials assert that labor protections in the Urban Mass Transportation Act inhibit the propensity of local transit agencies to contract with private firms for services. The authors present results from a survey of a large sample of transit managers and econometric analysis to support their conclusion that labor protections do not appear to reduce the incidence of contracting. The labor protections, however, may be costly to transit management in other ways. The authors recommend actions, aside from repeal of labor protections, to increase contracting by local transit agencies.