Employer size and dual labor markets

  • 17 Pages
  • 2.31 MB
  • English
National Bureau of Economic Research , Cambridge, MA
Wages -- United States -- Econometric models., Labor market -- United States -- Econometric models., Industries --
StatementJames B. Rebitzer, Michael D. Robinson.
SeriesNBER working paper series -- working paper no. 3587, Working paper series (National Bureau of Economic Research) -- working paper no. 3587.
ContributionsRobinson, Michael D., National Bureau of Economic Research.
The Physical Object
Pagination17, [6] p. ;
ID Numbers
Open LibraryOL22438263M

Employer Size and Dual Labor Markets. Book. Full-text available. This paper develops a model of dual labor markets based on employers' need to motivate workers. In order to elicit effort. If, as the literature suggests, increases in employer size make supervision more difficult, we should observe that wages increase with employer size in primary jobs but not in secondary jobs.

We test this hypothesis using a switching regression model. We find evidence of an employer size wage effect in both primary and secondary labor by:   Dual Labor Markets considers the macroeconomic implications of the dual market.

The book uses theoretical models derived from the author's research over the past six years to analyze such policy issues as the level and persistence of unemployment, the level of real wages, the accumulation of human capital, and the political viability of labor Cited by: Dual Labor Markets and Business Cycles of the size observed in East Asia in Second, how much of the decline in urban wages Employment In the urban labor market, there are workers employed in informal sector who seek jobs in the formal sector, NU t.

Firms in. DUAL LABOR MARKETS AND PRODUCTIVITY Abstract The present study analyzes cross-country and sectoral differences in productivity levels and growth in eleven European Union countries and the United States and twenty-two sectors from to The aim of this paper is to evaluate the role of dual labor markets as a result of the proliferation of.

The American workforce and the role of employee benefits have changed dramatically since the s when economists seriously considered dual labour market models to describe pay and employment patterns. Then, dual labour market models described men's labour markets, but not women's and the tests applied to wages and salaries, not total.

Description Employer size and dual labor markets FB2

employment changes over the business cycle. Theory is ambiguous and prior literature is not fully conclusive. We examine the relationship between multiple job holding and local unemployment rates using a large Current Population Survey data set of workers in urban labor markets during High unemployment labor markets have moderately lower.

The formal labour market is characterized by search costs following the approach used in Ravenna and Walsh (). There has been little attempt to model a dual labour market with matching function.

In Batini et al. (), the formal wage is equal to the informal wage aug. Employer signaling of hiring requirements remains elusive and a major challenge in connecting people to jobs and improving the overall functioning of labor markets.

The result is a perpetual misalignment among education, workforce, and credentialing systems and employer hiring practices, a disconnect that has stymied education and workforce. The World Economic Forum is an independent international organization committed to improving the state of the world by engaging business, political, academic and other leaders of society to shape global, regional and industry agendas.

Incorporated as a not-for-profit foundation inand headquartered in Geneva, Switzerland, the Forum is tied to no political, partisan or national interests. The labor market consists of two tiers.

Workers in the upper tier enjoy high wages, good benefits, and employment security, and they are often unionized. Workers in the lower tier experience low wages, high turnover, job insecurity, and little chance of promotion.

Until now, dual labor market theory has focused mainly on microeconomic factors such as discrimination, poverty, and public welfare. Category 4: Labour Markets. Dual Labour Markets Revisited. Abstract. This paper provides an overview of recent research on dual labour markets.

Theoretical and empirical contributions on the labourmarket effects of dual employment protection legislation - are revisited, as well as factors behind its resilience and policies geared towards. that has studied Dual Labor markets (for example, Bentolila et al.

Cahuc and Postel- VinayCostain et al.Dolado et al. or Sala et al. ) and, less intensively, 4 An American put option is a –nancial contract in which the buyer of the option has the right, but not the.

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Labor market segmentation is a key player both in the dual labor market structure and the development of labor markets as a whole. Generally speaking, a segmented labor market refers to the individual submarkets that divide labor markets, so that the primary and secondary sectors may themselves be subdivided into other sectors.

dual labor market theory for men and women simultaneously, and fi nd that, since more than 95 percent of women over the age of 30 fall into the secondary labor market, the dual labor market theory does not apply to the women’s labor market. There are several ways in which our work differs from, and improves upon, their analysis.

In this book, 16 leading economists establish the connection between the forces of the labour market and the persistent but ever-changing problem of unemployment. These scholars examine structural unemployment in terms of efficiency wage and dual labour market models, as. The theory of the dual labor market posits that the labor market features two separate segments: the primary sector, which is characterized by higher wages, greater returns to human capital, stable employment, and desirable working conditions; and the secondary sector, which lacks these attributes.

The Labour Market. Wage Rate (R per hour) Number Employed.

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Assume this is the market for Internet developers – the initial wage rate is £30 per hour. As businesses recognise the potential benefits of having a Web site, demand for their skills increases from D to D1.

Q2 Shortage. The demand for developers at a wage. Finally, large employers organize production around teams and pay higher wages to get workers who comply with the discipline of team production. The dispersion of wages and working conditions in the U.S.

labor market reflect the heterogeneity of jobs (employment relations) and individuals. The labor market in the United States has always been more flexible than labor markets of other Western societies.

American employers have been relatively unencumbered in dismissing poor performers or adjusting the labor force in response to exogenous changes in product demand, technological change, or the competitive environment. I wish to thank, the National Institute of Mental Health for providing financial assistance while I was working on this research.

I am grateful to Teresa Sullivan, William Wilson, Ira Katznelson, and Terry Clark for providing helpful comments on this paper. The negative consequences of dual labour markets have been extensively documented, but so far little attention has been paid to their effects on workers’ on-the-job training and cognitive skills.

This column discusses evidence from PIAAC – an exam for adults designed by the OECD in Temporary contracts are associated with a reduction of 8–16 percentage points in the.

This may have been because one version of labor market segmentation, the "dual labor market" theory of Reich, Gordon, and Edwards (), offered a historically-informed narrative to.

discussion by giving several examples from Turkey’s labor market. Keywords: Dual labor market, atypical employment, precarity, primary labor market, secondary labor market 1. Introduction Keynesian economics which dominated the years beginning from the Second World War till. encourage employers to value stable job attachment by their workers.

These factors converge to increase the probability that jobs in the primary labor market will be stable as well as relatively high paying. These jobs also tend to be unionized, and unionization tends to reinforce the stability of these labor market structures. The dual labour market (also referred to as the segmented labour market) theory aims at introducing a broader range of factors into economic research, such as institutional aspects, race and gender.

[citation needed] It divides the economy into two parts, called the "primary" and "secondary" distinction may also be drawn between formal/informal sectors or sectors with high/low. tinction between the dual and radical camps, as well as the appropriate categorization of the various authors, parallels David M.

Gordon, Theories of Poverty and Under-employment: Orthodox, Radical, and Dual Labor Market Perspectives (Heath, ).

There are two parallel stories relating to the U.S. labor market today. The first is what I call the “traditional” labor market story, which relies on the official monthly employment data.

market in California), or by industry (the labor market for production workers in the auto-mobile industry and the labor market for production workers in the steel industry).

Suppose there are two regional labor markets in the economy, the North and the South. We assume that the two markets employ workers of similar skills so that persons working.

SINCE the end of World War II, the United States has experienced persistently high unemployment. There have been 19 postwar years in which the unemployment rate exceeded four per cent; in 11 of those years it surpassed five per cent; in only four years did it fall below per cent.

These continuing labor market divisions pose anomalies for neoclassical economists. Orthodox theory assumes that profit-maximizing employers evaluate workers in terms of their individual characteristics and predicts that labor market differences among groups will decline over time because of competitive mechanisms (K.

Arrow). But by most.Books. Inequality in the 21st Century ; Studies in Inequality ; Research Reports. California Poverty Measure The Dual Labor Market: Theory and Implications. Reference Information. Author: Michael J.

Piore. Publisher: Winthrop Publishers. Publication: The State and the Poor. Read the article.Lecture 6 The Labor Market and Unemployment.

Link to slides / Link to handouts. Understanding why unemployment occurs is probably one of the most important question for macroeconomics. To quote Paul Samuelson in the First Edition of his Principles of Economics, in When, and if, the next great depression comes along, anyone of us may be completely unemployed - without income or prospects.