A normal Roy model with four sectors is developed. It allows to derive tests of several assumptions on the working of the labor market: strongly or weakly competitive or segmented. It shows that more important a feature of labor markets than segmentation is the presence of comparative advantages for individuals between the various economic sectors. The model is applied to data on women's labor-force participation in the main towns of Colombia in 1980. It uses multivariate probit and Tobit techniques. Copyright 1991 by The Econometric Society.
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Article provided by Econometric Society in its journal Econometrica.
Volume (Year): 59 (1991) Issue (Month): 1 (January) Pages: 165-87 Download reference. The following formats are available: HTML,
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