An Index of Segmentation in Local Labour Markets

Douglas Orr

International Review of Applied Economics, 1997, vol. 11, issue 2, 229-247

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.

Date: 1997
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DOI: 10.1080/02692179700000015

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