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Is the Swiss Labor Market Segmented? An Analysis Using Alternative Approaches

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  • Alfonso Sousa-Poza

Abstract

In this paper, three common empirical methods encountered in the segmentation literature are used in order to establish whether or not the Swiss labor market is segmented: (i) a hierarchical cluster analysis; (ii) a switching model with unknown regime; and (iii) an analysis of low-wage mobility with a bivariate probit model with endogenous selection. According to method (i), segmentation can hardly be observed. Method (ii) shows that the Swiss labor market is dualistic in nature. Method (iii) reveals that a certain degree of persistence exists in low-wage jobs. Whether or not the Swiss labor market is segmented thus depends on the choice of method, i.e. on the definition and understanding of segments. In any case, none of the methods used in this study point to the existence of a large and well-defined secondary segment. Copyright 2004, CEIS, Fondazione Giacomo Brodolini and Blackwell Publishing Ltd.

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Bibliographic Info

Article provided by CEIS in its journal LABOUR: Review of Labour Economics and Industrial Relations.

Volume (Year): 18 (2004)
Issue (Month): 1 (03)
Pages: 131-161

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Handle: RePEc:bla:labour:v:18:y:2004:i:1:p:131-161

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Cited by:
  1. Arne Uhlendorff, 2006. "From No Pay to Low Pay and Back Again?: A Multi-State Model of Low Pay Dynamics," Discussion Papers of DIW Berlin 648, DIW Berlin, German Institute for Economic Research.
  2. Fishman, Ezra & Kimhi, Ayal, 2013. "Is the Israeli Labor Market Segmented? Revisiting the Mixture Regression Model," Discussion Papers 164512, Hebrew University of Jerusalem, Department of Agricultural Economics and Management.
  3. Kohler, Pierre, 2012. "Three essays on the economic and cultural integration of migrants in Switzerland: putting into perspective the influence of economic discrimination and of host society culture," MPRA Paper 38129, University Library of Munich, Germany.
  4. Kalantzis, Y. & Kambayashi, R. & Lechevalier, S., 2012. "Wage and Productivity differentials in Japan. The Role of Labor Market Mechanisms," Working papers 399, Banque de France.
  5. Hielke Buddelmeyer & Wang-Sheng Lee & Mark Wooden, 2010. "Low-Paid Employment and Unemployment Dynamics in Australia," The Economic Record, The Economic Society of Australia, vol. 86(272), pages 28-48, 03.
  6. Pierre Kohler, 2012. "The Effect of Host Society Culture on Migrant Wage Discrimination: Approaching the Roestigraben," IHEID Working Papers 08-2012, Economics Section, The Graduate Institute of International Studies.

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