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An Index of Segmentation in Local Labour Markets

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  • Douglas Orr

Abstract

This study tests for the existence of labour market segmentation by exploiting the variation in industrial structure across 59 labour market areas, as defined by MSAs. By creating an index of the relative explanatory power of standard and segmented earnings function models for each area, empirical evidence supports the hypothesis that segmentation exists and that the index reflects the degree of segmentation in local labour market areas.

Suggested Citation

  • 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.
    • Handle: RePEc:taf:irapec:v:11:y:1997:i:2:p:229-247
    DOI: 10.1080/02692179700000015
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    Cited by:

    1. Alfonso Sousa‐Poza, 2004. "Is the Swiss Labor Market Segmented? An Analysis Using Alternative Approaches," LABOUR, CEIS, vol. 18(1), pages 131-161, March.
    2. 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.
    3. Rudy Fichtenbaum, 2006. "Labour market segmentation and union wage gaps," Review of Social Economy, Taylor & Francis Journals, vol. 64(3), pages 387-420.
    4. Magali Jaoul-Grammare, 2011. "L’évolution de la segmentation du marché du travail en France : 1973-2007," Working Papers of BETA 2011-08, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.

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