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Impacts of Productivity Changes on Profits, Prices, and Labor Compensation in Air Transportation: 1990–2001

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English


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  • Abstract:
    The objective of the paper is to assess the impacts of productivity changes in air transportation since 1990 in three basic economic areas: 1) industry profits, 2) consumers/users of air transportation services, and 3) industry employees. In this regard, an analysis is initially carried out between productivity measures and industry profits. Comparisons are also made between the general price level of the economy and several price indexes of the air transportation subsector. Also, an evaluation is conducted of labor compensation in air transportation, the U.S. economy, and other transportation industries. The analysis results in several findings. First, there is a marked association between productivity changes in air transportation and industry profits. Second, the benefit of productivity increases in air transportation does not seem to have transferred to consumers of air passenger services in the form of lower prices. On the other hand, users of scheduled cargo services did seem to benefit from lower prices. Finally, a portion of the benefit of productivity increases went to industry labor in the form of relatively high levels of labor compensation.

    Paper from the Journal of Transportation and Statistics, Volume 9, Number 1, 2006.

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    PDF
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    urn:sha256:f8a3e8b1678c0291b27bc3e7f6e2ed350eea950526feda3aaf5215b822f923cf
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    Filetype[PDF - 223.99 KB ]
File Language:
English
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