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Risky jobs and wage differentialsAn indirect test for segregation

Author

Listed:
  • Vincenzo Carrieri
  • Edoardo Di Porto
  • Leandro Elia

Abstract

Social scientists have developed several indicators to address the existence of segregation processes. Thispaper 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 ofcompensating 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 segmentationin risky jobs. According to the theory, workers segregated in risky jobs, earn a lower wage.

Suggested Citation

  • Vincenzo Carrieri & Edoardo Di Porto & Leandro Elia, 2011. "Risky jobs and wage differentialsAn indirect test for segregation," Working Papers in Public Economics 144, University of Rome La Sapienza, Department of Economics and Law.
    • Handle: RePEc:sap:wpaper:wp144
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    References listed on IDEAS

    as
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    5. Joni Hersch & W. Kip Viscusi, 1990. "Cigarette Smoking, Seatbelt Use, and Differences in Wage-Risk Tradeoffs," Journal of Human Resources, University of Wisconsin Press, vol. 25(2), pages 202-227.
    6. Mary Evans & V. Smith, 2010. "Measuring how risk tradeoffs adjust with income," Journal of Risk and Uncertainty, Springer, vol. 40(1), pages 33-55, February.
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    8. Heckman, James J. & Lalonde, Robert J. & Smith, Jeffrey A., 1999. "The economics and econometrics of active labor market programs," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 31, pages 1865-2097, Elsevier.
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    More about this item

    Keywords

    wage differentials; risky jobs; segregation; propensity score matching; Rosenbaum bounds.;
    All these keywords.

    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

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