labor market segmentation a cluster analysis of job groupings and barriers to entry real expenditures on public assistance programs have increased substantially in the past two decades as has real per capita income investments in a variety of education programs have risen and a number of jobs programs have been tried although there have been some gains for example a decline in the percentage of the population in poverty 31 474 a number of disparities persist unemployment remains at record levels and the prospect for sizable reductions in the unemployment rate seems quite small there are persistent differences between the mean household incomes of blacks and whites that have not narrowed at all during the past two decades 15 there is also a widespread perception that a disadvantaged segment of the u s population has no effective access to good jobs and if such persons get them they do not stay employed for long this means that many such adults are caught in a cycle of unemployment welfare dependency bad jobs and intermittent employment whereas there is nearly universal agreement that the persistent disparities in well being are undesirable there is considerable disagreement on what to do about this in part the disagreement stems from ignorance about the facts for example rigorous operational definitions of good and bad jobs have not been developed the notion that some persons do not have access to the good jobs is primarily based on anecdotes fortunately longitudinal data bases are now available that permit more rigorous empirical analysis of such issues

the quality of employment in india s services sector exploring the heterogeneity for some observers the dramatic growth of the services sector in india reflects rapid strides made by educated professionals some others see it as the expansion of an employer of last resort given this heterogeneity the object of this article is to analyse the quality of employment being created in different sub sectors of services relative to the industrial sector where quality is defined to include wages job security and social protection analysing household survey data from india in 1993 94 and 2004 05 we find the following first sub sectors of services are generally either good or bad employers higher wages do not compensate for less job security or less job protection second the classification of most service sub sectors as good or bad employers in 2004 05 is the same as that in 1993 94 third employment expansion during the 10 year period under consideration is more in service sub sectors where quality of employment is low

sex and sector differences in the dynamics of wage growth in the federal republic of germany research on wage differentials for men and women and for labor market sectors has relied largely on cross sectional analysis using data on three cohorts of west german men and women we bring a dynamic perspective to these issues by analyzing wage changes for three aspects of work histories 1 wage rate at time offirst entry into the labor market 2 wage changes when workers change jobs and 3 wage growth within jobs education affects first wages for men and women but the effect weakens sharply over time education also has a significant positive impact on wage growth within jobs over the entire period for men and a positive but not significant effect for women highly educated women do less well than other women when changing jobs consistent with the view that advancement for such women is impeded by a glass ceiling labor market segment affects initial wages and wage gains due to a job change however movement into internal labor markets skilled jobs in large firms does not confer an initial payoff in wages workers in sectors characterized by internal labor markets do not experience higher than average wage growth within jobs a result that runs counter to theories of segmented labor markets finally wages grow at a decreasing rate with duration of job for both men and women however wage growth is initially more rapid for women but also declines more sharply over time

does the european financial stability facility bail out sovereigns or banks an event study on may 9 2010 euro zone countries announced the creation of the european financial stability facility this paper investigates the impact of this announcement on bank share prices bank credit default swap cds spreads and sovereign cds spreads the main private beneficiaries were bank creditors furthermore countries with banking systems heavily exposed to southern europe and ireland benefited as evidenced by lower sovereign cds spreads the combined gains of bank debt holders and shareholders exceed the increase in the value of their banks sovereign debt exposures suggesting that banks saw their contingent claim on the financial safety net increase in value

wage determination for career and non career workers in the uk is there labour market segmentation this study proposes that the earnings of career employees are influenced by a different set of parameters from the earnings of non career employees the above proposition is tested by using a matched employer employee sample within the econometric framework of a bivariate sample selection model where the career status is modelled as endogenous and is subject to choice decisions

job matching and on the job training conventional analysis predicts that workers pay part of their on the job training costs by accepting a lower starting wage and subsequently realize a return to this investment in the form of greater wage growth missing from the conventional treatment of on the job training is a discussion of the process by which heterogeneous workers are matched to jobs requiring varying amounts of training this matching process constitutes a key feature of the on the job training model presented in this article and tested with a unique data set containing extensive information concerning on the job training employer search wages and wage and productivity growth

are workers paid their marginal products status is like coase s social costs a reciprocal phenomenon given that one person s gain in status can occur only at the expense of a loss in status for others and that workers are free to choose their coworkers it follows that the competitive wage structure within a firm must be one in which individual wage differences understate individual differences in marginal products the purpose of this paper is to examine a variety of empirical evidence that relates to this proposition about the firm s internal wage structure the paper is organized as follows section i briefly summarizes the theoretical considerations that govern competitive wage determination when status matters to people and firms are viewed as voluntary associations of workers section ii then confronts the predictions of section i by examining pay and productivity schedules for a group of sales occupations for which these schedules are relatively easily observed section ii also examines the relationship between wages and productivity for a sample of university professors an occupation in which individual productivity differences are for a variety of obvious reasons relatively more difficult to measure all of the evidence examined is consistent with the hypothesis that within firms wage rates vary substantially less than do individual productivity values section iii discusses additional observations and evidence that bear on this same hypothesis it suggests that the implicit market for status may strongly influence the ways in which firms are organized to carry out the tasks they perform section iv concludes by considering the claim that egalitarian internal wage structures arise because of equity considerations it argues that the concept of equity appears very closely linked to the concept of status and suggests a strategy for assigning monetaty value to the equity considerations that so often dominate public policy decisions

further evidence of the relevance of the dual labor market hypothesis for the u k this study proposes that the earnings of career employees are influenced by a different set of parameters from the earnings of non career employees the above proposition is tested by using a matched employer employee sample within the econometric

segmented labour markets and the estimation of wage functions this paper uses a stratified random sample of private sector employees to estimate wage equations for both the male labour market as a whole and six segments of the labour market segement which are defined with respect to the industry and size characteristics of the employing establishmen highly conventional results are obtained when wage equations are estimated for the male labour market as a whole or within two segements comprising almost half the survey population however one can reject conclusively the hypothesis that the same estimating equation is appropriate for modelling wage determination in all segments and if a human capital hk model is within segements tested against more appropriate alternative hypotheses for wage determination using the davidson and mackinnon 1981 methodology for the testing of non nested hypotheses the conclusion is that one should reject the hk specification and not reject the alternative it is therefore argued that the disaggregation of labour market dat

representing induced technological change in models for climate policy analysis induced technological change itc whereby the relative price effects of reducing greenhouse gas emissions stimulate innovation that mitigates the cost of abatement is both tantalizing to decision makers and challenging to represent in the computational economic and engineering models used to analyze climate change policy this overview reconciles the divergent views of technology and technological change within different types of models elucidates the theoretical underpinnings of itc introduces the reader to the techniques of their practical implementation and evaluates the implications for models results

explaining occupational sex segregation and wages findings from a model with fixed effects does segregation arise because female occupations have financial advantages for women planning to spend some time as homemakers as human capital theorists claim do male occupations have more onerous working conditions that explain their higher earnings as the neoclassical notion of compensating differentials suggests or do female occupations have low wages that are depressed by the sort of discrimination at issue in comparable worth as sociologists have argued to answer these questions the authors use a model with fixed effects to predict the earnings of young men and women from a pooled cross section time series of the national longitudinal survey analyses are undertaken for both blacks and whites a fixed effects model is useful for answering these questions because it corrects for the selection bias that results from the tendency of persons who differ on stable characteristics that are unmeasured but affect earnings to select themselves into different occupations the authors find little evidence that female occupations provide either low penalties for intermittent employment at high starting wages the advantages human capital theorists have argued them to have rather there is evidence of pay discrimination against men and women in predominantly female occupations implications for economic and sociological theories of labor markets are discussed authors

labour market segmentation a local labour market analysis using alternative approaches earlier studies have generally attempted to establish the presence or otherwise of labour market segmentation using a single technique using data drawn form the british social and economic life initiative sceli for six local labour markets this paper tests for segmentation using four different methods of analysis a simple career non career model cluster analysis and switching regressions the results in general suggest that explanatory power is not improved by analysing the labour market in different segments but this simple career model points to higher rewards for given characteristics in the career sector and the results of the switching regression model are consistent with duality in one of the six markets

solow meets leontief economic growth and energy consumption abstract this paper proposes a methodology that integrates a growth model with an input output model to analyze the impacts of economic growth on the consumption of energy the integration between the models is carried out by calibrating the growth module which incorporates energetic inputs renewable and nonrenewable in the production function and implementing shocks by the supply side capital labor renewable and nonrenewable energy in the input output model this allows us to verify the pattern of energy consumption for each sector in the input output matrix we apply this methodology to study the energy consumption of eleven economic sectors in brazil using data from the brazilian national accounts and input output matrix ibge and the national energy report ben we conduct experiments involving changes in technological progress growth rate extraction and regeneration rates of both renewable and nonrenewable resources and population growth to analyze the impact of changes in the parameters of the model on the sectoral output growth rate and consequently on the consumption of energy in each economic sector

wage determination in agricultural labour markets under monopsonist labour tying arrangements there is need for a study of wage formation in agricultural labour markets which can simultaneously explain the existence of involuntary unemployment on the one hand and responsiveness to market forces on the other this paper offers an analysis and empirical study of wage determination in a typical rural agricultural setting and finds that based on the notion of efficiency wages a two tier situation explains why rural wage rates are known to vary widely among workers and across regions

accounting for quality issues with modeling the impact of r d on economic growth and carbon emissions in developing economies the literature on climate policy modeling has paid scant attention to the important role that r d is already playing in industrializing countries such as china where r d investments are targeting not only productivity improvements but also enhancements in the quality and variety of products we focus here on the effects of quality enhancing innovation on energy use and ghg emissions in developing countries we construct an analytical model to show that efficiency improving and quality enhancing r d have opposing influences on energy and emission intensities with the efficiency improving r d having an attenuating effect and quality enhancing r d having an amplifying effect we find that the balance of these opposing forces depends on the elasticity of upstream output with respect to efficiency improving r d the elasticity of downstream output with respect to upstream quality enhancing r d occurring upstream and the relative shares of emissions intensive inputs in the costs of production of upstream versus downstream industries we employ a computable general equilibrium cge simulation of the chinese economy to illustrate the difficulties that arise in incorporating these results into models for climate policy analysis and we offer a simple remedy

segmented labour markets theory and evidence this paper examines the possibility of accepting the labour market segmentation approach as a valid alternative to the classical and neo classical analysis of labour markets it consists of three main parts the urst part contains a historical analysis of both the distant and recent origins of the labour market segmentation hypothesis part two outlines the central ideas of both segmentationalists and radical theorists who attempted to explain the fragmented nature of labour markets and the importance of institutional and social inuuences upon pay employment and mobility of individual workers between different labour market sectors the third part examines the case for labour market segmentation using four alternative techniques and discusses the issue of mobility among different labour market segments it is thereby concluded that the lack of agreement among the segmented labour market theorists on both theoretical and methodological issues has prevented them from developing a consistent and convincing argument based on veriuable empirical evidence to validate their thesis

testing spanish labour market segmentation an unknown regime approach 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

job mobility wage determination and market segmentation in the presence of sample selection bias this paper tests the hypothesis that mobility between jobs is an important determinant of individual wages and that econometric estimates of wage determination should correct for sample selectivity bias in job mobility we also test the hypothesis that different patterns of job mobility produce different appropriate corrections for sample selectivity bias in different segments of the labour market we conclude that labour market segments do differ and in particular that one can identify a marginal or low wage sector with mobility patterns and pay packages which differ from the pattern one can discern in the labour market as a whole mobilite entre emplois determination des salaires et segmentation du marche quand il y a biais de selection dans l ehantillonnage ce memoire verifie l hypothese que la mobilite entre emplois est un element determinant des salaires des individus et la proposition que les calibrations econometriques du processus de determination des salaires doivent etre corrigees pour tenir compte d un biais de selection dans l echantillonnage de mouvements entre emplois les auteurs verifient aussi l hypothese que differents patterns de mobilite entre emplois commandent des corrections appropriees differentes dans differents segments du marche du travail les auteurs en arrivent a la conclusion que les divers segments du marche du travail sont differents et qu en particulier on peut reperer un secteur marginal ou de bas salaires ofu les patterns de mobilite entre emplois et les remunerations different remarquablement de ce qui se passe dans le marche du travail dans son ensemble

the influence of socioeconomic background on the earnings of young men using the panel study of income dynamics we test the proposition that interaction between education and socioeconomic status ses has a negative impact on earnings contrary to findings by papanicolaou and psacharopoulos for the united kingdom no

job mobility and earnings over the life cycle previous studies have shown that in the short run quits generally lead to wage increases on the next job and layoffs to no increase or to a wage cut the author of this study argues however that the prospect of a job change for any reason creates a disincentive for a worker to invest in training that is specific to the current job and therefore those who change jobs frequently may earn less over their life cycle than those who other things equal seldom change jobs an analysis of data from the national longitudinal survey of mature men supports that expectation showing that for white males job separations usually lead to wage gains in the short run but nonmobile workers tend to achieve significantly higher wages over the long run

bailouts the incentive to manage risk and financial crises a firm s termination leads to bankruptcy costs this may create an incentive for outside stakeholders or the firm s debtholders to bail out the firm as bankruptcy looms because of this implicit guarantee firm shareholders have an incentive to increase volatility in order to exploit the implicit protection however if they increase volatility too much they may induce the guarantee extending parties to walk away i derive the optimal risk management rule in such a framework and show that it allows high volatility choices while net worth is high however risk limits tighten abruptly when the firm s net worth declines below an endogenously determined threshold hence the model reproduces the qualitative features of existing risk management rules and can account for phenomena such as flight to quality

segmented labor markets new evidence from a study of four race gender groups using data from a supplement to the 1983 current population survey the author tests hypotheses of segmented labor market theory two labor market sectors a primary sector and secondary sector are identified on the basis of occupational segmentation as inferred from workers answers to the question of whether specific skills or prior training were conditions for their employment the results show significant unexplained earnings differentials across sectors for each of four groups black men black women white men and white women other segmented labor market hypotheses are also generally supported by the results but distinct variations are found across the four groups

the expansion of temporary help employment in the us 1982 1992 a test of alternative economic explanations employment in the temporary help supply ths industry more than tripled in the us between 1982 and 1992 during that period the variability and cyclical sensitivity of ths jobs their average weekly hours and real hourly earnings were extraordinarily high in addition changes in temporary employment levels disproportionately affect aggregate employment flows over this period one possible explanation of the dramatic rise and variability in ths jobs is demographic changes in the composition of the labour force towards groups believed to prefer impermanent job commitment or temporal flexibility in supplying labour services a contrasting view considers it part of an explicit human resource strategy increasingly adopted by firms seeking greater numerical or cost flexibility this strategy may reflect an employer response to greater volatility in demand intensifying price competition pressures in product markets and rising quasi fixed costs incurred for permanent employees such as nonwage benefits a tw

an empirical test of the segmented labour market theory for the netherlands in this paper an orthodox segmented labour market theory slm theory is tested by means of the data provided by the research project quality of labour 1977 zanders et al 1977 the segmented labour market theory is restricted to the dual labour market approach although a major extension is taken into account a primary segment consisting of two tiers the segments are created by making use of an objectivemethod nine quality characteristics of jobs are taken into account a number of logit estimations are carried out to test the competing theories of human capital and the segmented labour market the conclusion is that although discrimination in the labour market appears to exist the slm theory has to be rejected

a test of dual labor market theory despite substantial differences in their views of the appropriate policy response to the existence of poverty neither the proponents of dual market theory nor its critics have proposed potentially conclusive tests of the dual market hypothesis this paper presents a test of the two central propositions of dual market theory 1 the existence of two distinct labor markets with different wage setting mechanisms and 2 the existence of barriers to mobility between the labor markets we find considerable support for both hypothesis estimation of a switching model of wage determination with unknown regimes yields two distinct wage equations the one which most workers are associated with closely resembles the standard human capital regression with significant returns to education and experience the other equation is flat with no returns to human capital these two equations resemble the predictions of dual market theory for the primary and secondary markets respectively further we present evidence that at least some non white workers are involuntarily confined to the secondary market this crowding of minority workers into the low wage labor market accounts for a substantial portion of white non white wage differences we interpret these results as providing empirical support for the dual market hypothesis and for recent theoretical work on efficiency wagemodels in addition combining the efficiency wage argument with the observation that much of the white non white wage difference is explained by the exclusion of non whites from the primary sector suggests an explanation for the persistance of wage differences this abstract was borrowed from another version of this item

matching turnover and unemployment this paper develops the view that workers move into and out of the labor market because of changes in the perceived value of their market opportunities a search model is combined with a matching model to yield movement of workers from job to job and into and out of employment

socioeconomic background schooling experience and monetary rewards in the united states using a selective sample from the 1977 panel study of income dynamics the authors investigate the relations among schooling job experience socioeconomic status ses iq and earnings in the united states in contrast to the results for the united kingdom reported by john papanicolaou and george psacharopoulos we find no interaction effect on earnings between schooling and ses a positive interaction effect on earnings however is found between experience and ses introducing iq in the analysis leaves the above mentioned results unchanged it is argued that differences between the u s and the u k might be due to cultural and labor market factors copyright 1986 by the review of economic studies limited

optimal taxation in the presence of bailouts the termination of a representative financial firm due to excessive leverage may lead to substantial bankruptcy costs a government in the tradition of ramsey 1927 may be inclined to provide transfers to the firm so as to prevent its liquidation and the associated deadweight costs it is shown that the optimal taxation policy to finance such transfers exhibits procyclicality and history dependence even in a complete market these results are in contrast with pre existing literature on optimal fiscal policy and are driven by the endogeneity of the transfer payments that are required to salvage the financial firm

the reemergence of segmented labor market theory according to dual labor market theory the labor market can be usefully described as consisting of two sectors a high wage primary sector with good working conditions stable employment and substantial returns to human capital variables such as education and experience and a low wage secondary sector with the opposite characteristics moreover primary jobs are rationed that is not all workers who are qualified for primary sector jobs and desire one can obtain one finally the sector of the labor market in which an individual is employed directly influences his or her tastes behavior patterns and cognitive abilities thus the dual labor market model or more generally segmented labor market models is simultaneously a description of the income distribution a claim about the absence of market clearing and a radical departure from the standard neoclassical assumption of fully rational actors and exogenously determined preferences while this last element is potentially the most interesting even its proponents fail to give it the attention it deserves and related work has not been incorporated into the segmented labor market model in this paper we therefore concentrate on the first two elements of the model segmented labor market theory was sufficiently popular in the late 1960 s and early 1970 s to be taken seriously by prominent mainstream labor economists however two influential and largely negative reviews glenn cain 1976 michael wachter 1974 portrayed the segmented labor market hypothesis as largely atheoretical and based at best on questionable statistical analysis it seems fair to say that even sympathetic mainstream critics felt that key insights from the segmented labor model could be incorporated into neoclassical analysis and that the remaining elements of the model did not form a sufficiently coherent theory to pose a challenge to the neoclassical model whatever the merits of this perception it is clear that advocates of the segmented labor market approach did not develop a formal theory which conformed to the standards of mainstream economists with some notable exceptions michael piore 1975 david gordon 1972 the work was atheoretical moreover the empirical methods used tended to fall outside the norm for example interviews observational studies and historical and institutional analysis advocates of the segmented labor market perspective mostly radical political economists chose instead to develop their own research program outside the mainstream the reemergence of segmented labor market theory is linked with the reversal of these two tendencies the theory has been pursued by economists using modern tools of imperfect information theory and state of the art econometrics as a result the approach has again attracted the attention of the mainstream even a few years ago it would have been a clairvoyant observer who predicted that lawrence summers would be working on a theoretical model of labor market duality with jeremy bulow 1986 that robert solow would count among his recent work a dual market model with ian mcdonald 1985 and that james heckman would publish an article in which he undertook an empirical test of a dual market model failed to reject the model and then devoted much of the rest of the article to attacking his and other tests of the dual labor market view see his article with v joseph hotz 1986 since the theoretical developments are largely associated with efficiency wage and departments of economics university of california berkeley ca 94720 and nber and boston university 270 bay state road boston ma 02215 and nber respectively this study was supported in part by nsf grant no ses 8606139 lang acknowledges support from a sloan faculty research fellowship dickens acknowledges support from the institute of industrial relations at berkeley

an investigation of the labor market earnings of panamanian males evaluating sources of inequality this paper presents empirical evidence on the determinants of labor market earnings and inequality for males in panama using newly available microdata we estimate earnings equations based on the measurement framework of mincer 1974 and compare them with those for other countries at various stages of economic development we present evidence on two aspects of inequality in less developed economies labor market segmentation and social stratification we present tests of the segmentation hypothesis including several of the dual labor market hypotheses and discuss their inherent ambiguity we also present evidence on the importance of family background for earnings determination and educational attainment

interplay between technological innovation and environmental quality formulating the sdg policies for next 11 economies abstract since the inception of sustainable development goals sdgs the next 11 n11 countries are facing difficulties in attaining the sdg objectives as maintaining the environmental quality has been a challenge for them in this study we have revisited the technology policies of these countries and in doing so we have tried to address the problem of environmental degradation while addressing the issues of sustained economic growth clean and affordable energy and quality education in this pursuit we have designed two indices for environmental degradation and technological advancement and then analyzed the association between them following the environmental kuznets curve ekc hypothesis the empirical analysis has been done by ipat framework and by using bootstrapped quantile regression and rolling window heterogeneous panel casualty tests over a period of 1990 2017 following the results obtained from the analysis we have tried to address the objectives of sdg 13 sdg 4 sdg 8 sdg 9 sdg 7 and sdg 10

testing the dual labor market hypothesis evidence from the israel labor mobility survey little research seems to have addressed the testing of the dual labor market model for nondeveloping economies outside the u s and the u k this paper examines the hypothesis for israel utilizing individual data drawn from the israel labor mobility survey and assigning workers to primary and secondary sectors on the basis of occupational prestige scores earnings functions are estimated and compared for the two sectors the results are very closely in line with predictions of the dual labor market model thus strongly suggesting that the dual labor market hypothesis may be relevant for israel

segmented labour markets in australia the concept and measurement of segmented labour markets has received little attention in australia here a method for establishing a taxonomy of occupaions according to characteristics associated with the segmented labour market hypothesis is presented using this taxonomy the distribution of workers in australia according to gender migrant status and trade union membershipis examined

family labour supply and labour market segmentation this paper examines the differences in individuals labour supply decisions in different segments of the labour market it tests one of the main hypotheses of the dual labour market theory that the labour market can be divided into at least two segments and also whether the family labour supply decisions of individuals differ in the two segments the possibility of individuals wage rates depending on the number of hours worked is recognized and a model is developed in which both the wage rates and hours of work of individuals are jointly determined with the personal income tax system as an intervening variable since hours of labour supply depend on the post tax wage rate whereas if the marginal product of labour is a positive function of hours worked this affects the pre tax wage rates other alternative wage functions are specified and a simultaneous equations labour supply model using three stage least squares 3sls procedure is estimated the results indicate that there was sample selectivity bias