Abstract
Has government involvement in the transit industry enhanced the relative bargaining power of its labor? This question is investigated by comparing the wages of public transit bus drivers with those of private motor bus drivers and public nontransport operatives. The estimation results suggest that public transit bus drivers earned less than comparable labor groups in the private and public sectors in the pre-reform period (1977, 1979 and 1981), but their wages surpassed or equaled those of comparable labor groups in the post-reform period (1985 and 1990). Ironically, it was only after the advent of the Reagan Administration's policies to reduce transit labor costs that public transit bus drivers enjoyed a marked improvement in their relative wage status.
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