Risky jobs and wage differentials An indirect test for segregation
Social 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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