Testing for Segmentation: An Establishment-Level Analysis

Robert McNabb and Keith Whitfield

Cambridge Journal of Economics, 1998, vol. 22, issue 3, 347-65

Abstract: It has long been suggested that the industrial structure in Britain is partitioned along core-periphery lines, as posited in segmented labor market theory. Empirical evidence for this proposition, however, has not been strong. In contrast to previous work, this study uses establishment-level data, which is generally recognized to be the most appropriate level of analysis. The results are supportive of a segmentation approach (though the nature of this segmentation is more complex than simple dualist models suggest), but it is shown to be strongly associated with expected outcome variables, particularly those relating to employment stability and low pay. Copyright 1998 by Oxford University Press.

Date: 1998
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