Employer Size and Dual Labor Markets
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.
Volume (Year): 73 (1991)
Issue (Month): 4 (November)
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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.:
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- repec:pri:indrel:258 is not listed on IDEAS
- Alan Krueger, 1989. "The Evolution of Unjust-Dismissal Legislation in the United States," Working Papers 638, Princeton University, Department of Economics, Industrial Relations Section..
- repec:fth:prinin:258 is not listed on IDEAS
- James B. Rebitzer & Lowell J. Taylor, 1991. "A Model of Dual Labor Markets When Product Demand Is Uncertain," The Quarterly Journal of Economics, Oxford University Press, vol. 106(4), pages 1373-1383.
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