The Decomposition of Wage Differential in a Segmented Labor Market

Volume 3, Issue 3, June 2019     |     PP. 93-101      |     PDF (273 K)    |     Pub. Date: August 19, 2019
DOI:    213 Downloads     6263 Views  

Author(s)

Jun Kong, School of Economics and Management, Northwest University, China
Tingting Niu, School of Economics and Management, Northwest University, China
Qing Deng, School of Economics and Management, Northwest University, China

Abstract
Through theoretical frame design and number simulation, a new approach on nondiscriminatory wage structure is established so as to decompose wage differential by linking the labor market and product market, assuming a segmented labor market. Results indicate that the nondiscriminatory wage structure may be overestimated, and the coefficient value may exceed the range of respective coefficients for whites and blacks regressed under the condition of labor market segmentation.

Keywords
Decomposition, wage difference, nondiscrimination, labor market segmentation

Cite this paper
Jun Kong, Tingting Niu, Qing Deng, The Decomposition of Wage Differential in a Segmented Labor Market , SCIREA Journal of Sociology. Volume 3, Issue 3, June 2019 | PP. 93-101.

References

[ 1 ] Arai K． Cooperation，Job Security，and Wages in a Dual Labor Market Equilibrium． The Journal of Socio-Economics，1997, 26(1): 39-57．
[ 2 ] Becker, Gary S., 1971, The Economics of Discrimination, second edition. Chicago: University of Chicago Press.
[ 3 ] Berger, S. and M. Piore. 1982. Dualism and Discontinuity in Industrious Society, Cambridge: Cambridge University Press.
[ 4 ] Blinder, Alan S., Wage Discrimination: Reduced Form and Structural Estimates, Journal of Human Resources,1973, 8: 436-455.
[ 5 ] Brown, R., M. Moon, and B. Zoloth, Incorporating Occupational Attainment in Studies of Male-Female Earnings Differentials, Journal of Human Resources, 1980, 15(1): 3-28.
[ 6 ] Bulow J I，Summers H L． A Theory of Dual Labor Markets with Application to Industrial Policy，Discrimination and Keynesian Unemployment．National Bureau of Economic Research，Working Papers Series 1666，1986．
[ 7 ] Cotton, Jeremiah, On the Decomposition of Wage Differentials, The Review of Economics and Statistics, 1988, 70(2): 236-243.
[ 8 ] Doeringer, Peter and Michael Piore, 1971. Internal Labor Markets and Manpower Analysis (Lexington: Lexington Books).
[ 9 ] Kerr, Clark. 1954. The Balkanization of Labor Markets, in W. Baake (ed)., Labor Mobility and Economic Opportunity, New York:Wiley.
[ 10 ] Levinson H M． Unionism，Concentration，and Wage Changes: Toward a Unified Theory．Industrial and Labor Relations Review，1967，20( 2) : 198-205．
[ 11 ] Neumark, D., Employers Discriminatory Behavior and the Estimation of Wage Discrimination, Journal of Human Resources, 1988, 23(3): 279—295.
[ 12 ] Oaxaca, Ronald L., Male-Female Wage Differentials in Urban Labor Markets, International Economic Review, 1973, 14: 693-709.
[ 13 ] Reimers, C.,Labor Market Discrimination against Hispanic and Black Men, Review of Economics and Statistics, 1983, 65(4): 570—579.