Full Citation

Title: Driver turnover in the trucking industry: What's the cost of reducing driver quit rates?

Citation Type: Journal Article

Publication Year: 2021

ISBN:

ISSN: 0739-8859

DOI: 10.1016/J.RETREC.2021.101129

NSFID:

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Abstract: This paper empirically examines the personal characteristics of truck drivers that are associated with a greater probability of driver turnover. Exploration of this phenomenon is significant in part because knowing who is likely to leave a trucking company helps decision makers in trucking firms identify effective measures needed to reduce driver turnover. Estimation results of a discrete driver quit choice model along with findings from estimating a driver wage equation, are used to predict the driver compensation needed to mitigate high driver turnover. These findings show that at the mean, drivers who stay on the job receive $54.25 (2018 dollars) more per week than drivers who leave, which translates to $2836.20 annually and is 6.02% percent above the mean wage of drivers who leave their job. The value of this annual wage differential is less than the mean value of the conservatively low estimate of $3654.72 (2018 dollars) computed in past research as the per driver cost of truck driver turnover. We interpret these results to suggest that it is cost effective for trucking companies to increase driver compensation. Indeed, truck driver wage trends do show a recent pattern of wage gains.

Url: https://www.sciencedirect.com/science/article/abs/pii/S0739885921001013

User Submitted?: No

Authors: Trick, Steven; Peoples, James; Ross, Anthony

Periodical (Full): Research in Transportation Economics

Issue: 1

Volume: 89

Pages:

Data Collections: IPUMS CPS

Topics: Labor Force and Occupational Structure, Land Use/Urban Organization

Countries: