Segmentation by skills and wage discrimination in a trans-border labor market
Global markets, free mobility and political integration among nation states should have a relevant impact on key issues in regional labor market studies, such as immigration, segmentation and delimitation. This paper presents an economic analysis of the impacts on segmentation, salary and human capital of the tight Swiss regulation imposed in past on immigrant workers. The case studied is the canton Ticino, a labor market whose gravity center is located at 20 km form the Italian border and 50 km from the center of the agglomeration of Milan. This very specific location allows to study the differentiated impacts on salaries, contract duration and allocation to industries of trans-border commuters as compared to short and long term immigrants. First evidence indicates the presence of a relevant immigration surplus (Borjas 1995) for the Ticino economy in the case of commuters and seasonal immigrants on the lower scale of qualification. Concerning more qualified labor force, empirical analysis of wage functions indicate a segmentation with respect to duration of contracts, more stable contracts being offered to resident workers. Here, the benefits are reaped by the protected labor force while industry does not seem to realize a significant surplus. The paper end with a theoretical discussion of the possible changes provoked by the imminent change in regulation implied by bilateral treaties on free mobility with the EU entering in vigor this year and draws some conclusions on the future relevance of the concept of border regions in a labor market context.
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.:
- Heckman, James, 2013.
"Sample selection bias as a specification error,"
Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
- Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, vol. 47(1), pages 153-161, January.
- Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb..
- Dickens, William T & Lang, Kevin, 1985. "A Test of Dual Labor Market Theory," American Economic Review, American Economic Association, vol. 75(4), pages 792-805, September.
- William T. Dickens & Kevin Lang, 1984. "A Test of Dual Labor Market Theory," NBER Working Papers 1314, National Bureau of Economic Research, Inc.
- Rosen, Sherwin, 1987. "The theory of equalizing differences," Handbook of Labor Economics,in: O. Ashenfelter & R. Layard (ed.), Handbook of Labor Economics, edition 1, volume 1, chapter 12, pages 641-692 Elsevier. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:wiw:wiwrsa:ersa02p445. 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: (Gunther Maier)
If references are entirely missing, you can add them using this form.