When is High Turnover Cheaper? A Simple Model of Cost Tradeoffs in a Long‐Distance Truckload Motor Carrier, with Empirical Evidence and Policy Implications

Burks, Stephen V.; Kildegaard, Arne; Monaco, Kristen A.; Miller, Jason

doi:10.2139/ssrn.4587413

Cited by 3 publications

(3 citation statements)

References 39 publications

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“…When coupled with evidence that the overall labor market for truck drivers behaves as theorized by labor economics (Burks & Monaco, 2019;Miller, Bolumole, et al, 2021;Phares & Balthrop, 2022), and that shortage concerns associated with high driver turnover are focused on a specific subsector (American Trucking Associations, 2019;Burks & Monaco, 2019;Miller, Bolumole, et al, 2021), our results are inconsistent with the driver shortage thesis. Consistent with our arguments, Fuller (2023) recently proclaimed the ATA's claims of a driver shortage to be a "myth," and Burks et al (2023) offered an alternative explanation of the industry's shortage perceptions.…”

Section: Managerial and Policy Implicationssupporting

confidence: 67%

Job gain and job loss dynamics in the truck transportation industry

Miller,

Phares,

Burks

2024

J of Business Logistics

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Every year, roughly 27% of all jobs in the truck transportation sector (NAICS 484) are reshuffled across motor carriers as existing carriers grow or shrink, new entrants begin operations, and existing firms exit. We take a first look at job gain and job loss dynamics in truck transportation, with a special emphasis on the roles of carrier age and job gain and loss dynamics in the manufacturing sector, the source for most trucking ton‐miles. In doing so, we draw on and extend theory in both supply chain management and economics. We test our predictions using archival administrative data covering 1995 through 2019 from the Census Bureau's Business Dynamics Statistics program that tracks the universe of truck transportation firms with employees. Results from fitting a series of mixed effects models provide strong evidence that job gain and job loss dynamics at trucking firms decline rapidly as carriers age. We further find these age‐related dynamics are moderated by employment dynamics in the manufacturing sector. Robustness testing shows job gains and losses dynamics in manufacturing are more predictive than the same dynamics in the distribution sector (wholesaling, retailing, and warehousing). We discuss implications of these findings for theory and practice.

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Section: Managerial and Policy Implicationssupporting

confidence: 67%

Job gain and job loss dynamics in the truck transportation industry

Miller,

Phares,

Burks

2024

J of Business Logistics

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“…The driver turnover literature can be organized by level of analysis. At the driver level, antecedents to turnover include driver demographics such as age (Beilock and Capelle 1990;Suzuki et al 2009); education (Beilock and Capelle 1990); experience and job tenure (Beilock and Capelle 1990;Burks et al 2006;Phares and Balthrop 2022;Suzuki et al 2009); number of dependents (Suzuki et al 2009); and union status (Beilock and Capelle 1990). Physical and psychological factors have also been linked to turnover.…”

Section: Labor Issues In Truckingmentioning

confidence: 99%

“…Several driver-level studies also examine factors such as job characteristics and work environment that affect driver turnover. Job characteristics impacting driver turnover include pay and compensation (Burks and Monaco 2019;Conroy et al 2022;Garver et al 2008;Johnson et al 2009;2011;Morrow et al 2005;Phares and Balthrop 2022;Prockl et al 2017;Schulz et al 2014;Stephenson and Fox 1996;Suzuki et al 2009;Williams et al 2011); hours worked and time away from home (Burks and Monaco 2019;Johnson et al 2009;2011;Morrow et al 2005;Suzuki et al 2009;Williams et al 2011); productive work (Sersland and Nataraajan 2015;Suzuki et al 2009); and work type, i.e., local and regional intermodal versus intermediate-and long-distance dedicated (Burks et al 2006). Work environment characteristics that impact driver turnover include lack of respect (Johnson et al 2009;2011;Williams et al 2017); government regulations (Johnson et al 2009;Williams et al 2017); carrier safety climate (Swartz et al 2017); and relationships with and behaviors of dispatchers and supervisors (Cantor et al 2011;Johnson et al 2009;Large et al 2014;Morrow et al 2005;Richard et al 1995).…”

Section: Labor Issues In Truckingmentioning

confidence: 99%

State-Level Trucking Employment and the Covid-19 Pandemic in the U.S: Understanding Heterogenous Declines and Rebounds

2023

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Minimum Space When Transporting Pigs: Where Is the “Good” Law?

Whiting

2024

Animals

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This paper focuses on the problem of numeracy when writing regulations, specifically how to describe a threshold for crowding of pigs during transport, considering transported pigs range in body mass from 5 to 500 kg. When scientific findings provide the basis for regulation in the public interest, those findings must be communicated in a consistent way to regulators and policymaking bodies. Numeracy is the ability to understand, reason with, and apply appropriate numerical concepts to real-world questions. Scientific understanding is almost always based on rational understanding of numerical information, numeracy. The threshold of administrative offenses is often a numerical description. Commercial livestock transporters have an interest in loading livestock compartments to the maximum to achieve the largest payload allowed by axle weight laws, as is the case in all bulk commodity transport. Maximizing payload minimizes costs and environmental hazards of fuel exhaust and can benefit the public with lower pork prices, but has a serious animal welfare risk. Livestock production academics, veterinarians, and animal welfare activists have been working for decades to determine the level of livestock crowding in transport containers that would be appropriate for regulatory enforcement. The scientific discourse has been plagued by a lack of numerical standardization when describing results of trials and forming recommendations. Exceeding specific numerical thresholds is the core to implementing enforcement actions. This paper examines the communication and other barriers that have prevented emergence of a consensus on this question and provides a direction toward resolution. Further confirmation of effects of crowding livestock in transit is needed. This paper suggests that articulating an enforceable standard in pig transport is possible. In inspection for compliance, discovering the LP50 (lethal pressure—50) for slaughter-weight pigs is an initial global benchmark goal. The LP50 is the loading floor pressure in a commercial transport compartment, under field conditions, that would result in the death of at least one pig in the group 50% of the time.

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When is High Turnover Cheaper? A Simple Model of Cost Tradeoffs in a Long‐Distance Truckload Motor Carrier, with Empirical Evidence and Policy Implications

Cited by 3 publications

References 39 publications

Job gain and job loss dynamics in the truck transportation industry

Job gain and job loss dynamics in the truck transportation industry

State-Level Trucking Employment and the Covid-19 Pandemic in the U.S: Understanding Heterogenous Declines and Rebounds

Minimum Space When Transporting Pigs: Where Is the “Good” Law?

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