Risky jobs and wage differentials An indirect test for segregation
AbstractSocial scientists have developed several indicators to address the existence of segregation processes. This paper deals with labor market segregation in risky jobs and suggests a simple indirect way to detect segregation based on battery of statistical tests in a well-established microeconomics setting: the theory of compensating wage differentials. The test is based on matching estimator and the Rosenbaum bounds test and allows us to detect segregation while correcting for the selection bias that affect standard estimates, commonly based on OLS. We apply our test to the Italian labor market and we detect a strong segmentation in risky jobs. According to the theory, workers segregated in risky jobs, earn a lower wage.
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Bibliographic InfoPaper provided by University of Rome La Sapienza, Department of Public Economics in its series Working Papers with number 144.
Date of creation: Jul 2011
Date of revision:
wage differentials; risky jobs; segregation; propensity score matching; Rosenbaum bounds.;
Find related papers by JEL classification:
- C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy
- I19 - Health, Education, and Welfare - - Health - - - Other
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-02-27 (All new papers)
- NEP-LAB-2012-02-27 (Labour Economics)
- NEP-LMA-2012-02-27 (Labor Markets - Supply, Demand, & Wages)
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