IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Log in (now much improved!) to save this article

An empirical approach on labour segmentation. Applications with individual duration data

Listed author(s):
  • Álvarez de Toledo, Pablo
  • Núñez, Fernando
  • Usabiaga, Carlos

This article proposes empirical tools to account for the role of heterogeneities in the labour matching process, and shows an application to the Andalusian labour market which relies on individual data. The central idea of the paper is that the labour market is segmented, and this segmentation can be treated empirically by grouping workers, jobs and matches into labour groups according to their characteristics. In a segmented labour market the probability that a match occurs in a particular job group affects the probability that a match occurs in a particular worker group or vice versa. We propose two empirical measures related to this idea: propensity to match, and segmentation in worker and job groups. The usefulness of this empirical framework is shown by its application to different labour market analyses. Firstly, we use a clustering methodology, based on a similarity measure, to obtain a better overview of the structure of the labour market. Secondly, we propose a measure of mobility based on our similarity measure, and estimate a regression model that relates mobility to worker and job characteristics and to the economic cycle. Finally, these tools are included in an unemployment duration model. The proposed methodology may be useful in labour intermediation by helping seekers to follow a ‘roadmap’ of successful paths.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.sciencedirect.com/science/article/pii/S0264999313003921
Download Restriction: Full text for ScienceDirect subscribers only

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Article provided by Elsevier in its journal Economic Modelling.

Volume (Year): 36 (2014)
Issue (Month): C ()
Pages: 252-267

as
in new window

Handle: RePEc:eee:ecmode:v:36:y:2014:i:c:p:252-267
DOI: 10.1016/j.econmod.2013.09.032
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/30411

References listed on IDEAS
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.:

as
in new window

  1. Devine, Theresa J. & Kiefer, Nicolas M., 1991. "Empirical Labor Economics: The Search Approach," OUP Catalogue, Oxford University Press, number 9780195059366.
  2. Carrasco, Raquel & García Pérez, J. Ignacio, 2008. "Unemployment duration among immigrants and natives: unobserved heterogeneity in a multi-spell duration model," UC3M Working papers. Economics we086933, Universidad Carlos III de Madrid. Departamento de Economía.
  3. Berg, G.J. & Ours, J.C., 1993. "Unemployment dynamics and duration dependence," Serie Research Memoranda 0022, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
  4. Eran Yashiv, 2007. "Labor search and matching in macroeconomics," LSE Research Online Documents on Economics 19707, London School of Economics and Political Science, LSE Library.
  5. Kambourov, Gueorgui & Manovskii, Iourii, 2004. "Occupational Mobility and Wage Inequality," IZA Discussion Papers 1189, Institute for the Study of Labor (IZA).
  6. Güell, Maia & Petrongolo, Barbara, 2003. "How Binding are Legal Limits? Transitions from Temporary to Permanent Work in Spain," CEPR Discussion Papers 3931, C.E.P.R. Discussion Papers.
  7. Olympia Bover & Manuel Arellano & Samuel Bentolila, 1996. "Unemployment duration, benefit duration, and the business cycle," Estudios Económicos, Banco de España;Estudios Económicos Homepage, number 57.
  8. Barbara Petrongolo & Christopher Pissarides, 2000. "Looking into the black box: a survey of the matching function," LSE Research Online Documents on Economics 2122, London School of Economics and Political Science, LSE Library.
  9. Robert Shimer, 2008. "The Probability of Finding a Job," American Economic Review, American Economic Association, vol. 98(2), pages 268-273, May.
  10. Cotterman, R & Peracchi, F, 1992. "Classification and Aggregation: An Application to Industrial Classification in CPS Data," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 7(1), pages 31-51, Jan.-Marc.
  11. Bachmann, Ronald & Burda, Michael C, 2007. "Sectoral Transformation, Turbulence, and Labour Market Dynamics in Germany," CEPR Discussion Papers 6226, C.E.P.R. Discussion Papers.
  12. Antolin, Pablo & Bover, Olympia, 1997. "Regional Migration in Spain: The Effect of Personal Characteristics and of Unemployment, Wage and House Price Differentials Using Pooled Cross-Sections," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 59(2), pages 215-235, May.
  13. Bentolila, Samuel & Dolado, Juan J. & Jimeno, Juan F, 2011. "Reforming an Insider-Outsider Labor Market: The Spanish Experience," CEPR Discussion Papers 8691, C.E.P.R. Discussion Papers.
  14. Lalé, Etienne, 2012. "Trends in occupational mobility in France: 1982–2009," Labour Economics, Elsevier, vol. 19(3), pages 373-387.
  15. Rogerson, Richard & Shimer, Robert, 2011. "Search in Macroeconomic Models of the Labor Market," Handbook of Labor Economics, Elsevier.
  16. Miller, Robert A, 1984. "Job Matching and Occupational Choice," Journal of Political Economy, University of Chicago Press, vol. 92(6), pages 1086-1120, December.
  17. Lilien, David M, 1982. "Sectoral Shifts and Cyclical Unemployment," Journal of Political Economy, University of Chicago Press, vol. 90(4), pages 777-793, August.
  18. Dennis Snower & Christian Merkl & Alessio J. G. Brown, 2010. "An Incentive Theory of Matching," 2010 Meeting Papers 439, Society for Economic Dynamics.
  19. Mario Cleves & William W. Gould & Roberto G. Gutierrez & Yulia Marchenko, 2010. "An Introduction to Survival Analysis Using Stata," Stata Press books, StataCorp LP, edition 3, number saus3, September.
  20. Robert J. R. Elliott & Joanne Lindley, 2006. "Skill Specificity And Labour Mobility: Occupational And Sectoral Dimensions," Manchester School, University of Manchester, vol. 74(3), pages 389-413, 06.
  21. repec:rer:articu:v:02:y:2013:p:195-221 is not listed on IDEAS
  22. Stephen Machin & Alan Manning, 1998. "The Causes and Consequences of Long-Term Unemployment in Europe," CEP Discussion Papers dp0400, Centre for Economic Performance, LSE.
  23. Maia Guell & Luojia Hu, 2003. "Estimating the Probability of Leaving Unemployment Using Uncompleted Spells from Repeated Cross-section Data," Working Papers 854, Princeton University, Department of Economics, Industrial Relations Section..
  24. Steiner, Viktor, 2001. " Unemployment Persistence in the West German Labour Market: Negative Duration Dependence or Sorting?," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 63(1), pages 91-113, February.
  25. Christopher Pissarides, 2008. "EconomicDynamics Interviews Christopher Pissarides on the Matching Function," EconomicDynamics Newsletter, Review of Economic Dynamics, vol. 10(1), November.
  26. Dale T. Mortensen, 2007. "Island Matching," NBER Working Papers 13287, National Bureau of Economic Research, Inc.
  27. Mortensen, Dale T & Pissarides, Christopher, 1999. "New Developments in Models of Search in the Labour Market," CEPR Discussion Papers 2053, C.E.P.R. Discussion Papers.
  28. Pablo Álvarez de Toledo & Fernando Núñez & Carlos Usabiaga Ibáñez, 2011. "An empirical analysis of the matching process in Andalusian," Hacienda Pública Española, IEF, vol. 198(3), pages 67-102, September.
  29. Ronald McQuaid, 2006. "Job search success and employability in local labor markets," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 40(2), pages 407-421, June.
  30. Arellano, Manuel & Bover, Olympia, 2001. "Learning About Migration Decisions from the Migrants: Using Complementary Datasets to Model Intra-Regional Migrations in Spain," CEPR Discussion Papers 2746, C.E.P.R. Discussion Papers.
  31. Abraham, Katharine G. & Katz, Lawrence F., 1986. "Cyclical Unemployment: Sectoral Shifts or Aggregate Disturbances?," Scholarly Articles 3442781, Harvard University Department of Economics.
  32. repec:adr:anecst:y:2009:i:95-96:p:08 is not listed on IDEAS
  33. Coles, Melvyn G & Smith, Eric, 1994. "Marketplaces and Matching," CEPR Discussion Papers 1048, C.E.P.R. Discussion Papers.
  34. McCall, Brian P, 1990. "Occupational Matching: A Test of Sorts," Journal of Political Economy, University of Chicago Press, vol. 98(1), pages 45-69, February.
  35. Jovanovic, Boyan & Moffitt, Robert, 1988. "An Estimate Of A Sectoral Model Of Labor Mobility," Working Papers 88-32, C.V. Starr Center for Applied Economics, New York University.
  36. Carrasco, Raquel, 1999. " Transitions to and from Self-employment in Spain: An Empirical Analysis," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 61(3), pages 315-341, August.
  37. Robert H. Topel & Michael P. Ward, 1992. "Job Mobility and the Careers of Young Men," The Quarterly Journal of Economics, Oxford University Press, vol. 107(2), pages 439-479.
  38. N. Lesca, 2010. "Introduction," Post-Print halshs-00640602, HAL.
  39. Christopher A. Pissarides, 2000. "Equilibrium Unemployment Theory, 2nd Edition," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262161877, September.
  40. Jeremy Fox, 2016. "Estimating Matching Games with Transfers," CeMMAP working papers CWP14/16, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
  41. Kuo, Mien-Yun & Smith, Eric, 2009. "Marketplace matching in Britain: Evidence from individual unemployment spells," Labour Economics, Elsevier, vol. 16(1), pages 37-46, January.
  42. Ebrahimy, Ehsan & Shimer, Robert, 2010. "Stock-flow matching," Journal of Economic Theory, Elsevier, vol. 145(4), pages 1325-1353, July.
  43. Reich, Michael & Gordon, David M & Edwards, Richard C, 1973. "A Theory of Labor Market Segmentation," American Economic Review, American Economic Association, vol. 63(2), pages 359-365, May.
  44. Faini, Riccardo & Galli, Giampaolo & Gennari, Pietro & Rossi, Fulvio, 1997. "An empirical puzzle: Falling migration and growing unemployment differentials among Italian regions," European Economic Review, Elsevier, vol. 41(3-5), pages 571-579, April.
  45. Ahn, N. & de la Rica, S. & Ugidos, A., 1998. "Willingness to Move for Work and Unemployment Duration in Spain," Papers 9801, Centro de Estudios Monetarios Y Financieros-.
  46. Carlos Iglesias-Fernández & Raquel Llorente-Heras, 2007. "Sectoral Structure, Qualification Characteristics and Patterns of Labour Mobility," The Service Industries Journal, Taylor & Francis Journals, vol. 27(4), pages 411-434, June.
  47. Pissarides, Christopher A & Wadsworth, Jonathan, 1989. "Unemployment and the Inter-regional Mobility of Labour," Economic Journal, Royal Economic Society, vol. 99(397), pages 739-755, September.
  48. Neal, Derek, 1995. "Industry-Specific Human Capital: Evidence from Displaced Workers," Journal of Labor Economics, University of Chicago Press, vol. 13(4), pages 653-677, October.
  49. Lucas, Robert Jr. & Prescott, Edward C., 1974. "Equilibrium search and unemployment," Journal of Economic Theory, Elsevier, vol. 7(2), pages 188-209, February.
  50. Gautier, Pieter A., 2002. "Non-sequential search, screening externalities and the public good role of recruitment offices," Economic Modelling, Elsevier, vol. 19(2), pages 179-196, March.
  51. Ricardo Lagos, 2000. "An Alternative Approach to Search Frictions," Journal of Political Economy, University of Chicago Press, vol. 108(5), pages 851-873, October.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:eee:ecmode:v:36:y:2014:i:c:p:252-267. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.