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Risky jobs and wage differentialsAn indirect test for segregation

Author

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  • Vincenzo Carrieri
  • Edoardo Di Porto
  • Leandro Elia

Abstract

Social scientists have developed several indicators to address the existence of segregation processes. Thispaper deals with labor market segregation in risky jobs and suggests a simple indirect way to detect segregation based on battery of statistical tests in a well-established microeconomics setting: the theory ofcompensating wage differentials. The test is based on matching estimator and the Rosenbaum bounds test and allows us to detect segregation while correcting for the selection bias that affect standard estimates,commonly based on OLS. We apply our test to the Italian labor market and we detect a strong segmentationin risky jobs. According to the theory, workers segregated in risky jobs, earn a lower wage.

Suggested Citation

  • Vincenzo Carrieri & Edoardo Di Porto & Leandro Elia, 2011. "Risky jobs and wage differentialsAn indirect test for segregation," Working Papers in Public Economics 144, Department of Economics and Law, Sapienza University of Roma.
    • Handle: RePEc:sap:wpaper:wp144
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    References listed on IDEAS

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    More about this item

    Keywords

    wage differentials; risky jobs; segregation; propensity score matching; Rosenbaum bounds.;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy
    • I19 - Health, Education, and Welfare - - Health - - - Other

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