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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"Policy Relevant Heterogeneity in the Value of Statistical Life: New Evidence from Panel Data Quantile Regressions,"
Center for Policy Research Working Papers
118, Center for Policy Research, Maxwell School, Syracuse University.
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"Characterizing Selection Bias Using Experimental Data,"
NBER Working Papers
6699, National Bureau of Economic Research, Inc.
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