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Employer Size and Dual Labor Markets

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Author Info
Rebitzer, James B
Robinson, Michael D

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Abstract

Effort regulation models argue that labor markets are segmented because of differences in the technology of supervision across firms. Primary jobs pay above market clearing wages because these jobs are difficult to monitor. Secondary jobs, in contrast, pose no monitoring difficulties and, therefore, pay a market clearing wage. If, as the literature suggests, increases in employer size make supervision more difficult, the authors should observe that wages increase with employer size in primary jobs but not secondary jobs. Copyright 1991 by MIT Press.

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Publisher Info
Article provided by MIT Press in its journal Review of Economics & Statistics.

Volume (Year): 73 (1991)
Issue (Month): 4 (November)
Pages: 710-15
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Handle: RePEc:tpr:restat:v:73:y:1991:i:4:p:710-15

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References listed on IDEAS
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  1. Oliver E. Williamson, 1967. "Hierarchical Control and Optimum Firm Size," Journal of Political Economy, University of Chicago Press, vol. 75, pages 123. [Downloadable!] (restricted)
  2. Akerlof, George A, 1982. "Labor Contracts as Partial Gift Exchange," The Quarterly Journal of Economics, MIT Press, vol. 97(4), pages 543-69, November. [Downloadable!] (restricted)
  3. Cain, Glen G, 1976. "The Challenge of Segmented Labor Market Theories to Orthodox Theory: A Survey," Journal of Economic Literature, American Economic Association, vol. 14(4), pages 1215-57, December. [Downloadable!] (restricted)
  4. Alan B. Krueger, 1989. "The Evolution of Unjust-Dismissal Legislation in the United States," NBER Working Papers 3127, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  5. repec:fth:prinin:258 is not listed on IDEAS
  6. Dickens, William T & Lang, Kevin, 1988. "Labor Market Segmentation and the Union Wage Premium," The Review of Economics and Statistics, MIT Press, vol. 70(3), pages 527-30, August. [Downloadable!] (restricted)
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  7. Mellow, Wesley, 1982. "Employer Size and Wages," The Review of Economics and Statistics, MIT Press, vol. 64(3), pages 495-501, August. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Rudy Fichtenbaum, 2006. "Labour market segmentation and union wage gaps," Review of Social Economy, Taylor and Francis Journals, vol. 64(3), pages 387-420, September. [Downloadable!] (restricted)
  2. Erling Barth, 1992. "Why Do Some Firms Pay More? An Empirical Investigation of Inter-Firm Wage Differentials," Institute for Research on Labor and Employment, Working Paper Series 1070, Institute of Industrial Relations, UC Berkeley. [Downloadable!]
  3. James B. Rebitzer & Lowell J. Taylor, 1991. "The Consequences of Minimum Wage Laws: Some New Theoretical Ideas," NBER Working Papers 3877, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  4. Agell, Jonas & Bennmarker, Helge, 2002. "Wage Policy and Endogenous Wage Rigidity: A Representative View from the Inside," Research Papers in Economics 2002:12, Stockholm University, Department of Economics. [Downloadable!]
  5. José Ignacio Uribe & Carlos Humberto Ortiz & Gustavo Adolfo García, 2007. "La segmentación del mercado laboral colombiano en la década de los noventa," Revista de Economía Institucional, Universidad Externado de Colombia - Facultad de Economía, vol. 9(16), pages 189-221, January-J. [Downloadable!]
  6. Agell, Jonas & Bennmarker, Helge, 2002. "Wage policy and endogenous wage rigidity: a representative view from the inside," Working Paper Series 2002:12, IFAU - Institute for Labour Market Policy Evaluation. [Downloadable!]
  7. Laura Juarez, 2008. "Are Informal Workers Compensated for the Lack of Fringe Benefits? Free Health Care as an Instrument for Formality," Working Papers 0804, Centro de Investigacion Economica, ITAM. [Downloadable!]
  8. Zafar Mueen Nasir, 1998. "Determinants of Personal Earnings in Pakistan: Findings from the Labour Force Survey 1993-94," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 37(3), pages 251-274. [Downloadable!]
  9. Christopher Hanes, 2000. "Nominal Wage Rigidity and Industry Characteristics in the Downturns of 1893, 1929, and 1981," American Economic Review, American Economic Association, vol. 90(5), pages 1432-1446, December. [Downloadable!] (restricted)
  10. Jonas Agell & Helge Bennmarker, 2002. "Wage Policy and Endogenous Wage Rigidity: A Representative View From the Inside," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
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