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Testing Spanish labour market segmentation: an unknown-regime approach

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  • Ana Huguet Roig

Abstract

This paper studies the existence of two differentiated segments, primary and secondary, in the Spanish labour market. For this, a methodology (switching regression model with unknown regimes) is used which, on the one hand, does not demand a priori demarcation of segments and on the other, enables the allocation of workers to the segments to be treated as a factor endogenous to the model itself and closely connected with the wage-setting mechanisms operating in the segments. The empirical results show that the assignment to segments is not random and that there are substantial differences in the wage determination process between the two sectors. Furthermore, the model estimated has allowed analysis of the ex-post composition of the segments and corroboration, to a large extent, of the predictions of the dual labour market theory.

Suggested Citation

  • Ana Huguet Roig, 1999. "Testing Spanish labour market segmentation: an unknown-regime approach," Applied Economics, Taylor & Francis Journals, vol. 31(3), pages 293-305.
    • Handle: RePEc:taf:applec:v:31:y:1999:i:3:p:293-305
    DOI: 10.1080/000368499324282
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    Cited by:

    1. Bradley, Steve & Crouchley, Rob & Oskrochi, Reza, 2003. "Social exclusion and labour market transitions: a multi-state multi-spell analysis using the BHPS," Labour Economics, Elsevier, vol. 10(6), pages 659-679, December.
    2. Fishman, Ezra & Kimhi, Ayal, 2013. "Is the Israeli Labor Market Segmented? Revisiting the Mixture Regression Model," Discussion Papers 164512, Hebrew University of Jerusalem, Department of Agricultural Economics and Management.
    3. 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.
    4. Marcel Garz, 2013. "Labour Market Segmentation: Standard and Non-Standard Employment in Germany," German Economic Review, Verein für Socialpolitik, vol. 14(3), pages 349-371, August.
    5. María Laura Alzúa, 2008. "Are Informal Workers Secondary Workers?: Evidence for Argentina," CEDLAS, Working Papers 0073, CEDLAS, Universidad Nacional de La Plata.
    6. Alzua María Laura, 2009. "Are Secondary Workers Informal Workers? Evidence for Argentina," Revista Desarrollo y Sociedad, Universidad de los Andes,Facultad de Economía, CEDE, September.
    7. Mengistu Assefa Wendimu & Peter Gibbon, 2014. "Labour markets for irrigated agriculture in central Ethiopia: Wage premiums and segmentation," IFRO Working Paper 2014/06, University of Copenhagen, Department of Food and Resource Economics.
    8. 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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