THE CASE FOR STRENGTHENED MOTOR CARRIER HOURS OF SERVICE REGULATIONS

This study suggests that the May 2000 government proposal to reduce the hours of service for motor carriers and redesign many of the related work rules from the levels set in essence in 1937 was rejected on the basis on an incorrect calculation of its costs and benefits. The case for making the changes is stronger than originally thought and would bring the U.S. into closer compliance with standards in other parts of the developed world. The reasons new rules are needed are: market failures which have failed to create a supportable free labor market; the political landscape which is polarized because benefits and costs do not fall equally on all parties required to agree to the proposal; and an underestimating of benefits accrued from increased driver health and safety and an overestimating of the social costs of compliance, often among drivers themselves. The study also suggests various policy options to strengthen existing rules and address the widespread pattern of violations.