An Index of Segmentation in Local Labour Markets

Orr, Douglas V.

doi:10.1080/02692179700000015

Cited by 5 publications

(2 citation statements)

References 24 publications

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“…In recent years an increased interest in research on labor market segmentation has taken place. One of the reasons for this resurgence is that labor market conditions deteriorated in the 1990s (Orr, 1997); poverty, welfare, and unemployment thus re-entered public debate. This is especially the case in Switzerland, where unemployment and poverty, in particular, increased in the 1990s.…”

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confidence: 99%

Is the Swiss Labor Market Segmented? An Analysis Using Alternative Approaches

Sousa‐Poza

2004

Labour

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In this paper, three common empirical methods encountered in the segmentation literature are used in order to establish whether or not the Swiss labor market is segmented: (i) a hierarchical cluster analysis; (ii) a switching model with unknown regime; and (iii) an analysis of low-wage mobility with a bivariate probit model with endogenous selection. According to method (i), segmentation can hardly be observed. Method (ii) shows that the Swiss labor market is dualistic in nature. Method (iii) reveals that a certain degree of persistence exists in low-wage jobs. Whether or not the Swiss labor market is segmented thus depends on the choice of method, i.e. on the definition and understanding of segments. In any case, none of the methods used in this study point to the existence of a large and well-defined secondary segment.

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Section: Introductionmentioning

confidence: 99%

Is the Swiss Labor Market Segmented? An Analysis Using Alternative Approaches

Sousa‐Poza

2004

Labour

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“…The first is to elevate the human capital of workers in the secondary sector through government-funded training programs. The second is to increase the number of primary jobs (Orr, 1997).…”

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Segmented Local Labor Markets in Postreform China: Gender Earnings Inequality in the Case of Two Towns in Zhejiang Province

Tan

Wang

2006

Environ Plan A

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IntroductionLabor-market segmentation is of concern for several reasons. Segmented labor markets are a major cause of economic inefficiency because excluding a majority of workers from access to many labor-market segments wastes human resources and reduces the flexibility of the labor market to cope with economic change (Anker, 1997). Segmentation induced by gender, ethnicity, or race marginalizes certain social groups and contributes to social inequality (Boston, 1990). Research into the dynamics of labormarket transformation, both the mechanisms and the outcomes of change, provides an important means of understanding the changes in economies and social welfare.Although labor-market segmentation in developed economies has been studied extensively (Bauder, 2003;Hanson and Pratt, 1991;Peck, 1996), there are growing interests in and concerns over the changing patterns of labor markets in developing economies (Fan, 2002;Gindling, 1991). As a developing nation, China has experienced dramatic social and economic changes over the last two-and-a-half decades during its transition from a centrally planned system to a`socialist market economy' (Oi, 1999;Walder, 1995;Xu and Tan, 2001). During this process of economic transition, massive changes in the Chinese labor market have resulted in a new relation between labor supply and demand (

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Labour market segmentation and union wage gaps

Fichtenbaum

2006

Review of Social Economy

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There has been a great deal of research regard the effects of unions on union - non-union wage gap. Most of the studies regarding the impact of unions on wages have assumed that apart from the division between union and non-union workers, the labour market is relatively homogeneous. A number of economists, however, have argued that the labour market is segmented, implying that there are distinct labour markets and that some workers employment opportunities are concentrated in “bad jobs” while other workers employment opportunities are concentrated in “good jobs” which are rationed. This paper will explore whether the relative wage differential between union and non-union workers differs between the independent primary, subordinate primary and secondary labour markets. Labour market segments are defined using “job zones”. “Job zones” are distinct groups defined by the level of specific vocational preparation necessary for a particular occupation, allowing for the comparison of skill levels and training for each occupation. The data on “job zones” comes from the Occupational Information Network database (O*Net). We estimate separate equations for union and non-union workers in each segment using data from the Current Population Survey and calculate union non-union differentials for each labour market segment. The findings of this paper suggest that the greatest differentials are in secondary labour markets followed by differentials in the subordinate primary labour market and that the smallest wage differentials are in the independent primary labour market.wages, unions, segmented labor markets,

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An Index of Segmentation in Local Labour Markets

Cited by 5 publications

References 24 publications

Is the Swiss Labor Market Segmented? An Analysis Using Alternative Approaches

Is the Swiss Labor Market Segmented? An Analysis Using Alternative Approaches

Segmented Local Labor Markets in Postreform China: Gender Earnings Inequality in the Case of Two Towns in Zhejiang Province

Labour market segmentation and union wage gaps

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