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Testing for Labour Market Segmentation in Britain


  • McNabb, Robert


According to the dual labor market theory, it is possible to identify distinct segments in the labor market that have different ways of allocating labor and determining wages. In this paper, the author tests this hypothesis by examining the role of institutional and demand-side factors in explaining the distribution of earnings among workers with comparable training and skill levels. A distinction is made between a strict version of the hypothesis based on "core" and "periphery" industry segments and what has been called the "heuristic" form of the segmentation theory involving a more flexible approach to divisions in the labor market. Copyright 1987 by Blackwell Publishers Ltd and The Victoria University of Manchester

Suggested Citation

  • McNabb, Robert, 1987. "Testing for Labour Market Segmentation in Britain," The Manchester School of Economic & Social Studies, University of Manchester, vol. 55(3), pages 257-273, September.
  • Handle: RePEc:bla:manch2:v:55:y:1987:i:3:p:257-73

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    References listed on IDEAS

    1. F. Giavazzi & L. Spaventa, 1990. "The "New" EMS," Working Papers 86, Dipartimento Scienze Economiche, Universita' di Bologna.
    2. Olivier Jean Blanchard & Stanley Fischer, 1989. "Lectures on Macroeconomics," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262022834, January.
    3. Calvo, Guillermo A., 1983. "Staggered prices in a utility-maximizing framework," Journal of Monetary Economics, Elsevier, vol. 12(3), pages 383-398, September.
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    Cited by:

    1. Mengistu Assefa Wendimu & Peter Gibbon, 2014. "Labour markets for irrigated agriculture in central Ethiopia: Wage premiums and segmentation," IFRO Working Paper 2014/06, University of Copenhagen, Department of Food and Resource Economics.
    2. Gerard Hughes & Brian Nolan, 1996. "Segmented Labour Markets and Earnings in Ireland," Papers WP075, Economic and Social Research Institute (ESRI).
    3. Noria, Gabriela López, 2015. "The effect of trade and FDI on inter-industry wage differentials: The case of Mexico," The North American Journal of Economics and Finance, Elsevier, vol. 34(C), pages 381-397.
    4. D. Yuhong & G. Johnes, 2003. "Influence of expected wages on occupational choice: new evidence from Inner Mongolia," Applied Economics Letters, Taylor & Francis Journals, vol. 10(13), pages 829-832.

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