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The labour market segmentation: empirical analysis of Cain's theory (1976)

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  • Magali Jaoul-Grammare

Abstract

Criticisms addressed to the theory of the human capital take mainly into account the specificity of the labour market. Doeringer and Piore (1971) and Cain (1976) highlight the influence of the situation on the labour market on the individual wage determination. This influence has been studied for various countries (Theodossiou and Yannopoulos, 1998; Yuhong and Johnes, 2003). Sloane et al. (1993), Orr (1997) and Roig (1999) shed light especially the existence of labour market segmentation. On the contrary, for Van Ophem (1987), the theory of the segmentation of the labour market has been to be rejected. Following this, the aim of this article is to test the existence of the labour market segmentation described by Cain (1976) for the case of France on the last twenty years. The use of various statistical techniques allows us to check on the one hand, the connection between the qualifications and the place occupied on the labour market and on the other hand to identify the existence of several labour markets.

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  • Magali Jaoul-Grammare, 2007. "The labour market segmentation: empirical analysis of Cain's theory (1976)," Applied Economics Letters, Taylor & Francis Journals, vol. 14(5), pages 337-341.
    • Handle: RePEc:taf:apeclt:v:14:y:2007:i:5:p:337-341
    DOI: 10.1080/13504850500461522
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    1. I. Theodossiou & A. Yannopoulos, 1998. "Labour market segmentation and unemployment duration," Applied Economics Letters, Taylor & Francis Journals, vol. 5(9), pages 549-553.
    2. Nan L. Maxwell, 1987. "Occupational Differences in the Determination of U.S. Workers’Earnings: Both the Human Capital and the Structured Labor Market Hypotheses Are Useful in Analysis," American Journal of Economics and Sociology, Wiley Blackwell, vol. 46(4), pages 431-443, October.
    3. Ana Huguet Roig, 1999. "Testing Spanish labour market segmentation: an unknown-regime approach," Applied Economics, Taylor & Francis Journals, vol. 31(3), pages 293-305.
    4. Rao, M. J. Manohar & Datta, Ramesh C., 1985. "Human capital and hierarchy," Economics of Education Review, Elsevier, vol. 4(1), pages 67-76, February.
    5. D. Yuhong & G. Johnes, 2003. "Influence of expected wages on occupational choice: new evidence from Inner Mongolia," Applied Economics Letters, Taylor & Francis Journals, vol. 10(13), pages 829-832.
    6. Douglas Orr, 1997. "An Index of Segmentation in Local Labour Markets," International Review of Applied Economics, Taylor & Francis Journals, vol. 11(2), pages 229-247.
    7. Arrow, Kenneth J., 1973. "Higher education as a filter," Journal of Public Economics, Elsevier, vol. 2(3), pages 193-216, July.
    8. Michael Spence, 1973. "Job Market Signaling," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 87(3), pages 355-374.
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    3. Michele Battisti, 2013. "Reassessing Segmentation In The Labour Market: An Application For Italy 1995–2004," Bulletin of Economic Research, Wiley Blackwell, vol. 65, pages 38-55, May.

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