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Given that the supply of scientific personnel is inelastic, the expansion of public research may negatively influence private research by driving up the wage of scientific personnel and reallocating them away from private sectors. China's massive college expansion since 1999 and labor market segmentation provide us with a unique opportunity to investigate such a reallocation effect on firm innovation. Consistent with the reallocation hypothesis, we find that China's college expansion negatively influenced firm innovation as well as regional innovation in the short run. Moreover, we provide direct evidence on scientific personnel reallocation by finding that when college expansion was more intensive, highly educated laborers were less likely to choose an industrial job, and those working in industries enjoyed a higher wage rate when holding a professional (research related) job.

We propose a new approach to study the structure of occupational labor markets that relies on social network analysis techniques. Highly detailed transition matrices are constructed based on changes in individual workers' occupations over successive months of the Current Population Survey rotating panels. The resulting short-term transition matrices provide snapshots of all occupational movements in the U.S. labor market at different points in time and for different sociodemographic groups. We find a significant increase in occupational mobility and in the diversity of occupational destinations for working men over the past two decades. The occupational networks for black and Hispanic men exhibit a high overall density of ties resulting from a high probability of movement among a limited set of occupations. Upward status mobility also increased during the time period studied, although there are large differences by race and ethnicity and educational attainment. Finally, factional analysis is proposed as a novel way to explore labor market segmentation. Results reveal a highly segmented occupational network in which movement is concentrated within a limited number of occupations with markedly different levels of occupational status.

Commenting on the significance of work as a pathway for the realization of human needs, evidence has shown the challenges of non-standard employment (NSW) on the actualization of human needs on many grounds. However, this study attempts to stretch this discourse beyond the realm of other industrial sectors in Nigeria to the food processing industrial sector with sparse documentations. The paper interrogates how the labor union has been hampered by a constellation of issues towards addressing the rife of employment casualization. In view of this, the labor market segmentation theory was positioned as a theoretical argument to understand the array of these issues. A total of 24 labor union leaders were purposively selected from three organizations in the food processing industry based on some pre-determined criteria. The NVivo qualitative software was employed to identify themes from the transcripts’ data, while the content analysis tool was used to analyze the themes. The study found a range of workplace challenges for casual laborers and the labor union with consequential impact on the membership and financial strength of the union. The lack of political will and patriotism, economic downturn, rivalry and corruption were highlighted as issues constraining labor union efforts in the realization of decent work places. The study recommends a more habitual political climate for labor union through appropriate legislation for a robust function as well as the need to address the rife of rivalry and corruption among rank-and-file labor leaders for a workable labor union agenda for decent work.

This article investigates the link between digital technologies and female labor market outcomes in a country with one of the largest gender disparities. It exploits the massive roll-out of mobile broadband technology in Jordan between 2010 and 2016 to identify the effect of internet adoption on labor force participation. Using panel data at the individual level with rich information on labor market outcomes, internet use and gender-biased social norms, the article finds that internet adoption increases female labor force participation but has no effect on male labor force participation. The increase in online job search explains some -- but not all -- of the total increase in female labor force participation. Only older and skilled women experience an increase in employment in response to having internet access. The internet also reduces the prevalence of gender-biased social norms, early marriage and fertility.

This paper provides new evidence on the impacts of the COVID-19 economic crisis on a labor market with a high prevalence of informality. The analysis uses a rich longitudinal household survey for Peru that contains a host of individual and job outcomes before and during the first months of the lockdown in 2020. The findings show that workers who had jobs in non-essential and informal sectors were significantly more likely to become unemployed. In contrast to developed countries, having a job amenable to working from home is not correlated with job loss when controlling for informal status. This is consistent with the high level of labor market segmentation observed in Peru, where high-skilled occupations are disproportionately concentrated in the formal sector, which was also better targeted by policies aimed at supporting firms and job protection during the crisis. In addition, the findings show that women were more likely to lose their jobs because female-dominated sectors are more intensive in face-to-face interactions and thereby more affected by social distancing measures. Increased childcare responsibilities also help explain the worse impacts on women in rural areas. Finally, workers who depended on public transportation before the crisis were more likely to lose their jobs during the early months of the pandemic.

I study how the density of executive labor markets affects managerial incentives and thereby firm performance. I find that U.S. executive markets are locally segmented rather than nationally integrated, and that the density of a local market provides executives with non-compensation incentives. Empirical results show that in denser labor markets, executives face stronger performance-based dismissal threats as well as better outside opportunities. These incentives result in higher firm performance in denser markets, especially when executives have longer career horizons. Using state-level variation in the enforceability of covenants not to compete, I find that the positive effects of market density on incentive alignment and firm performance are stronger in markets where executives are freer to move. This evidence further supports the argument that local labor market density works as an external incentive alignment mechanism.

This paper is a study of the effect of Brazil's staggered Internet rollout between 2000 and 2014 on municipality employment and wages. The study uses a new, annual data set on Internet availability from the Brazil school census, with the assumption that the share of schools that have Internet access in each municipality reflects the general accessibility of Internet connections. These data are combined with Brazil's rich, matched employer-employee survey, which contains annual occupation and wage earnings information for all formally-employed workers in Brazil across all sectors, including primary, secondary, and tertiary industry groups. Contemporaneous and lagged effects are considered. The analysis finds that increased Internet access has no statistically significant net effect on aggregate employment, and has a negative effect on average wages, with a reduction in measures of wage dispersion. Brazil’s Internet rollout results in employment shifts from sectors with more limited expansion opportunities (wholesale and retail trade, public administration, and largely publicly-owned utilities, which jointly comprise almost half of the formal workforce in 2010) to sectors with more output expansion opportunities. The employment effects are positive and most pronounced in the manufacturing, transport and storage, finance and insurance, and hospitality industry groups. In the manufacturing sector, Internet access induces positive employment and wage effects in medium- and high-skill occupations.

Recent immigration and migration patterns have altered the ethnoracial composition of Alameda County, California. Sociopolitical leaders have struggled to adjust to these changes. In an effort to facilitate limited English speakers’ access to critical municipal services, Oakland—the largest municipal in Alameda County—passed an Equal Access to Services Ordinance on May 8, 2001, which is a groundbreaking language access legislation for the City of Oakland’s public administration. Using data from the 2000 Census and the 2005–2011 American Community Survey, this study examines the impact of bilingual employment policies on the ethnoracial segmentation of Alameda County workers. Logistic regression reveals that bilingual employment policies have reorganized both targeted (i.e., public contact) and non-targeted occupations within the local government public administration sector. Specifically, Spanish/Chinese bilingual speakers made gains in the public administration sector (the intended effects), while Black monolingual English speakers experienced losses (the unintended effects). The representation of Black monolingual English speakers in public contact jobs within the local government public administration sector declined by as much as 18 percentage points after the implementation of the nation’s first municipal-level bilingual employment policy. The impact of bilingual employment policies on the East Bay’s Black/Brown relations and African American’s hold on low-skilled jobs in service industries is examined.

This report provides a detailed diagnostic of the Jordanian labor market. It finds that labor market outcomes are worsening in Jordan. It has one of the lowest levels of labor force participation in the world, and only one out of every three working-age Jordanians has a job. Low rates of firm entry and exit suggest that the process of creative destruction is limited. Most private sector firms are either small – and stay small or large and old. The share of employment in small firms -which tend to be less productive- is growing. Employment is increasingly informal, less productive. High levels of informality drive down overall levels of labor productivity and suggests that important distortions affect the allocation of resources in the economy. At the same time, a large inflow of Syrian refugees and economic migrants makes the need for job creation even more urgent.

The coordinated development of population urbanization and employment in urban areas is an important issue in the process of China’s economic and social development. On the one hand, the rapid development of population urbanization may intensify the contradictions between the supply and demand of urban labor, hence creating a great pressure on urban development in terms of employment; on the other hand, the segmentation of the labor market caused by institutional factors may impede the effective transfer of the rural labor force to urban areas and affect the speed and quality of population urbanization.

This article revisits the fitting of parametric distributions to earned income data. A new candidate is proposed in line with Camilo Dagum's dictum that candidate distribution should not only be chosen for fit, but that economic content should also play a role. The fit of a simple finite mixture performs as well or better than the widely used generalized beta of the second kind (GB2) and is argued to be easier to interpret economically. Specifically, the good fit is taken as evidence for a finite number of distinct labor market segments with qualitatively different generating mechanisms. It is speculated that this could be reconciled with either modern search-and-match models in which agent and / or firm heterogeneity can lead to multiple equilibria, or with an older theory of labor market segmentation. Regardless, the use of the mixture model addresses one of the central weaknesses of testing the older theory of dual labor markets empirically. The approach taken in this article is also motivated by the work of E. T. Jaynes, the father of maximum entropy approaches to statistical inference, and related to recent work by physicists on the income distribution.

The dysfunction of the Tunisian labor market is exacerbated particularly by the segmentation between public and private sector employment. These different segments differ in terms of returns to human capital, social protection and mobility, affecting career development and the wage structure in the economy. In this chapter, we present the patterns of wage distribution in Tunisia across important socioeconomic groups and a detailed analysis of the wage gap between public and private sectors. Our results show particularly that while in the bottom sector of the wage distribution the positive wage gap between public and private sectors is mainly attributable to the composition or characteristics of workers, the wage gap in the upper sector of the distribution is due to returns to characteristics effect. The public-sector wage premium explains the strong preference in public positions.

Although Chinese government has promoted the privatization of state-owned enterprises since the end of the 1990s, in the important industry sectors, which are related to the country’s security and economy, the Chinese government has enforced management and control by financing preferential policies and industry entry regulations. Particularly, a set of macroeconomic stimulation policies after the global financial crisis of 2007–2008 concentrates the government public investment support for these monopolistic industry sectors. Thus there exists segmentation between the monopoly industry sector and competitive industry sector. In addition, there also exists a segmentation between the migrants and local urban residents by the Hokou system (registration system) in China. Chapter 4 considers the two kinds of labor market segmentation, and investigates how the industry sector segmentation influences the wage gap between the migrants and local urban residents. It is found that the individual productivity characteristic differentials (e.g. human capital) in the same industry sector is the main factor causing the wage gaps in both 2002 and 2013, and the problems of discrimination against migrants in the same industry sector become more serious from 2002 to 2013.

One of the most important factors that determine individuals' quality of life and wellbeing is their position in the labor market and the type of jobs that they hold. When workers are rationed out of the formal segment of the labor market against their will, i.e., the labor market is segmented, their quality of life is limited, and their wellbeing is reduced. When they can freely choose between a formal or informal employment relationship, i.e., the labor market is integrated, their wellbeing can reach high levels even in the presence of informal employment. We, therefore, test whether the Ukrainian labor market is segmented along the formal-informal divide, slicing the data by gender and age. The analysis that we perform consist in the analysis of short-term and medium-term transitions between five employment states, unemployment and inactivity. We also analyze wage gaps of mean hourly earnings and across the entire hourly earnings distribution, controlling for time-invariant unobserved heterogeneity. According to our results segmentation is present for dependent employees: for a large part of informal employees informal employment is used as a waiting stage to enter formal salaried employment and is not voluntarily chosen. As far as self-employment is concerned the evidence is mixed regarding segmentation in the Ukrainian labor market. This heterogeneity in outcomes implies that not all informal work is associated with a low quality of life and reduced wellbeing in post-transition economies.

One of the most important factors that determine individuals’ quality of life and wellbeing is their position in the labor market and the type of jobs that they hold. When workers are rationed out of the formal segment of the labor market against their will, i.e., the labor market is segmented, their quality of life is limited, and their wellbeing is reduced. When they can freely choose between a formal or informal employment relationship, i.e., the labor market is integrated, their wellbeing can reach high levels even in the presence of informal employment. We, therefore, test whether the Ukrainian labor market is segmented along the formal-informal divide, slicing the data by gender and age. The analysis that we perform consist in the analysis of short-term and medium-term transitions between five employment states, unemployment and inactivity. We also analyze wage gaps of mean hourly earnings and across the entire hourly earnings distribution, controlling for time-invariant unobserved heterogeneity. According to our results segmentation is present for dependent employees: for a large part of informal employees informal employment is used as a waiting stage to enter formal salaried employment and is not voluntarily chosen. As far as self-employment is concerned the evidence is mixed regarding segmentation in the Ukrainian labor market. This heterogeneity in outcomes implies that not all informal work is associated with a low quality of life and reduced wellbeing in post-transition economies.

It is known that because socialism policies which promote social equality were enforced by Chinese government, the gender gap in wage and employment was little during the planned economy system period in urban China. The gender wage gap became enlarged during the economic transition period. What factors can explain the gender wage gap in the 2000s? As described in Chap. 3, to counter the developing countries and the other economic transition countries in central and eastern Europe, there exists the labor market segmentation between public sector and private sector which is a special labor market structure for China. Does the labor market segmentation by public sector and private sector affect the gender wage gap in China? Chapter 5 focuses on this issue which is not noticed in the previous studies and provides some evidence to answer the question. Some interesting findings are obtained. For example, it is found that the problem of discrimination against female workers in a given ownership sector (public or private sectors) is becoming more serious, and is the main factor which causes the gender wage gap expanding in urban China from 2002 to 2013.

The increase in Qatar's population, over the last decades, has not been caused primarily by a natural growth of indigenous population, but by the influx of migrant workers (MW). During past last four decades, Qatar population multiplied 15 times from 111,000 to 1,624,761 in July 2011 (Permanent Population Committee, 2011). The total number of MW in Qatar increased during the period 2004-2014 from 400,000 to 1,400,000, with annual growth rate of 14.7 percentage, 70 percentage are semi/unskilled workers in the private sector (4th Qatar Human Development Report, 2015: 48). Overtime, the MW has become one of the most dynamic economic factors in Qatar. More recently, the employment of large numbers of MW has been a structural imperative in Qatar, as the oil and gas-related projects, construction development, Education City, specific projects as the Pearl, Lusial, Qatar Rail, and Qatar 2022 depends on the importation of foreign technologies and require knowledge and skills. Such uncontrolled growth resulted in population imbalances in terms of nationality for the sake of non-Qataris and gender for the sake of male population imbalances, as well as labor market segmentation, mainly government/public and private, and skilled and un-semi-skilled market, where the former is dominated by the Qataris while the latter is dominated by the MS. Over the last two decades, Qatar has revised its policies related to migration in order to monitor and supervise the influx of MW. In turn, this led to the establishment of some local institutions, membership of some international institutions, and issuing some rules and regulations that conform to international standards. This paper discuss those policies, with special focus on sponsorship system, kafala, and to what extent it supported Qatar»s need of Highly-Skilled Migrants (HSM) in driving its economy.

While the average labor market advantage of college graduates with STEM (Science, Technology, Engineering, and Mathematics) degrees relative to non-STEM students is well established, how this STEM versus non-STEM income gap varies across institutional contexts has been understudied. From the perspective of new institutionalism, we investigate the moderating effects of hierarchically situated higher education institutions and labor market sectors on the economic disparity between STEM and non-STEM majors by pooling data from two nationwide representative surveys collected in contemporary urban China. The results of median regression models suggest that (1) On average, STEM majors are more lucrative than non-STEM majors in Reform-Era China, a pattern resembling that of many other societies. (2) The vertical stratification of higher education institutions, i.e., the postsecondary education sector's segmentation into “junior” and “regular” colleges, is relevant, where a smaller STEM advantage over non-STEM fields is detected among junior college graduates after accounting for potential cohort variation. Moreover, this moderating effect of college tiers declines across birth cohorts. (3) Working in the state sector, such as the Communist Party and government department and institutions, relative to the other sectors, significantly narrows the earnings gap between STEM and non-STEM graduates. However, this labor-market-sector heterogeneity in the STEM versus non-STEM income gap also declines across birth cohorts. Theoretical implications of empirical findings are discussed.

In traditional publishing, female authors' titles command nearly half (45%) the price of male authors' and are underrepresented in more prestigious genres, and books are published by publishing houses, which determined whose books get published, subject classification, and retail price. In the last decade, the growth of digital technologies and sales platforms have enabled unprecedented numbers of authors to bypass publishers to publish and sell books. The rise of indie publishing (aka self-publishing) reflects the growth of the "gig" economy, where the influence of firms has diminished and workers are exposed more directly to external markets. Encompassing the traditional and the gig economy, the book industry illuminates how the gig economy may disrupt, replicate, or transform the gender discrimination mechanisms and inequality found in the traditional economy. In a natural experiment spanning from 2002 to 2012 and including over two million book titles, we compare discrimination mechanisms and inequality in indie and traditional publishing. We find that indie publishing, though more egalitarian, largely replicates traditional publishing's gender discrimination patterns, showing an unequal distribution of male and female authors by genre (allocative discrimination), devaluation of genres written predominantly by female authors (valuative discrimination), and lower prices within genres for books by female authors (within-job discrimination). However, these discrimination mechanisms are associated with far less price inequality in indie, only 7%, in large part due to the smaller and lower range of prices in indie publishing compared to traditional publishing. We conclude that, with greater freedom, workers in the gig economy may be inclined to greater equality but will largely replicate existing labor market segmentation and the lower valuation of female-typical work and of female workers. Nonetheless, price setting for work may be more similar for workers in the gig economy due to market competition that will compress prices ranges.

Labor market segmentation theories arose as an alternative to neoclassical notions of labor and labor markets in the 1970s. After briefly revisiting the strengths and the weaknesses of this approach, the article discusses more recent developments around the question of difference and diversity in labor markets, directing attention to three key developments associated with the rise of neoliberal capitalism: (i) the formation of entrepreneurial subjectivities and the treatment of labor as a diverse human resource; (ii) the blurring of the boundaries of the business firm and the implications for labor; and (iii) offshoring and “governance at a distance.”

Based on a 2009 national survey on college graduate employment in China, this article analyzes the relationship of college graduates’ place of work to their birthplace and where they attend college, using a conditional logit model. The findings indicate that graduates tend to stay to work in their birthplaces or places of study, controlling for economic, higher education, and personal characteristics. Graduates from Project 211 key universities and those with graduate degrees are more likely than non-211 graduates or bachelor or associate graduates to leave their birthplaces but stay to work in their places of study. To balance the distribution of college graduates and improve the efficiency of human resources, existing labor market segmentation should be broken down and more emphasis placed on the distribution of higher education.

Summary This paper contributes to the continuing debates on the mechanisms driving labor market informality in developing countries by proposing an innovative way to discriminate between segmented and competitive markets. An empirical analysis is applied to Egyptian paid employment in the highly dynamic context of 1998–2006. The study is based on recent nonparametric methods applied to estimate the model with essential heterogeneity. The model is extended to decomposing the treatment effects into unobserved and observed components. The results show triple heterogeneity of workers on the Egyptian labor market, offering support to both segmented and competitive views on informal labor.

Purpose– The purpose of this paper is to take occupation opportunity as an indicator to examine the impact of hukou on labor market segmentation in China. It estimates the scale of the impact and identifies the way of the impact. Especially, the paper takes hukou uniform reform as an example and tests whether hukou reforms helped in eliminating labor market segmentation.Design/methodology/approach– The data sets this paper adopted are the 2000 Census and 2005 Mini Census data in China. Linear model and Probit model are used in estimating hukou's impact. Oaxaca/Blinder decomposition is used in decomposing the difference in occupation distribution among hukou statuses. DID evaluation method is used in comparing the region with hukou uniform reform and the region without to capture the influence of the reform.Findings– The result shows that occupation segmentation based on hukou significantly exists in urban labor market. Hukou uniform reform improved the occupation opportunity of local rural workers but migrating rural workers were somehow crowded out. Migrating urban workers did not benefit from the reform. To conclude these, the reform released employment segmentation between rural and urban workers within the reformed region but strengthened the segmentation between the local residents and outcomers which could influence future labor source and scale in reformed area.Originality/value– The paper evaluates the hukou uniform reform's impact on the labor market using an empirical way for the first time and makes concrete policy recommendations based on these findings.

We extend the scarce research on corporate crime to include gender by developing and testing a gendered focal concerns and crime opportunities framework that predicts minimal and marginal female involvement in corporate criminal networks. Lacking centralized information, we developed a rich database covering 83 corporate frauds involving 436 defendants. We extracted information from indictments and secondary sources on corporate conspiracy networks (e.g., co-conspirator roles, company positions, and distribution of profit). Findings support the gendered paradigm. Typically, women were not part of conspiracy groups. When women were involved, they had more minor roles and made less profit than their male co-conspirators. Two main pathways defined female involvement: relational (close personal relationship with a main male co-conspirator) and utility (occupied a financial-gateway corporate position). Paralleling gendered labor market segmentation processes that limit and shape women’s entry into economic roles, sex segregation in corporate criminality is pervasive, suggesting only subtle shifts in gender socialization and women’s opportunities for significant white-collar crimes. Our findings do not comport with images of highly placed or powerful white-collar female criminals.

This paper investigates the relationships between the phenomenon of underemployment in Poland - defined as a non-standard form of employment, particularly as work on fixed-term contracts - and the role of informal social networks and family in meeting social needs. Two different hypothesis are considered. The first hypothesis. Extension of labor market segmentation leads to an increase in the role of family and informal social networks among workers, who are deprived of stable employment and with limited chances of promotion. Employees with fixed-term contracts (according to Eurostat 28,2% of all employees) have a limited access to public and commercial institutions that meet social needs. For those people the family and community should play an important role in providing individuals with goods and services. In other words, underemployment fosters familiarization in Poland. The second hypothesis. Employees with lower average incomes from fixed-term work have a limited access to affluent social support networks. The rule of reciprocity is weaker among these segments of social structure. Thus, the role of community and family plays a less significant role in households where non-standard employment is prevalent. The intensity of family's and informal social network's support is explored in reference to child care and financial transfers within informal networks. The analysis is based on the EUSILC data from 2008.

In contrast with the typical transition to a market economy, earnings inequality in Vietnam between 1993 and 2006 appears to have decreased, and the earnings gap in favor of public employees appears to have widened. We use a comparative advantage model to disentangle the effect of sorting workers across sectors from the effect of the differences in returns to workers' skills. The selection of the best workers into the public sector is clearly an important component of the explanation for the public-private sector earnings gap, but the widening of this gap over time is primarily due to changes in the compensation patterns. We find that in the 1990s, public employees were underpaid compared with their earning potential in the private sector, whereas in the early 2000s, public employees earned similar returns to their comparative advantage in the public and private sectors. The increasing homogeneity in returns to skills in the Vietnamese labor market appears to explain both the increase in the public-private pay gap and the decrease in overall inequality. Copyright 2013, Oxford University Press.

Using data from the 2010 China Family Panel Study and county- and industry-level statistics, we estimate cross-classified multilevel models to examine the determinants of the income gap among Chinese workers. Results show that both regional and industrial differences are important sources of income inequality in China. Taken together, they account for about one fifth of the total variation in individual income. Among them, differences in county explains 7%, while difference in industry accounts for 14% of the total variation. Further analyses demonstrate that county- and industry-level variables have significant independent effects on individual income even after controlling for individual socio-demographic characteristics and human capital resources. We also explore the potential mechanisms through which macro-level factors function in widening income gaps among Chinese workers. Our results show industrial monopolies have been a key driver of the elevated income inequality in China.

使用“2009年中国社会网络与职业经历调查” (JSNET2009) 广州、上海、厦门、 济南和西安五城市数据, 检验了改革以后影响中国城市劳动者职业流动模式以及经济 地位获得的因素。研究结果表明, 高学历劳动者与低学历劳动者群体处于两个分割的 劳动力市场中, 他们的经济地位获得路径完全不同。对于低学历劳动者, 职业流动是 提升他们收入水平的最重要因素, 而人力资本因素 (受教育年限和工作经验) 对他们 的收入没有影响。高学历劳动者的情况刚好相反, 职业流动对收入获得没有任何作 用, 影响他们收入分层的最重要因素是人力资本。本研究揭示了转型期中国城市地区 不同劳动力市场劳动者的经济地位获得的二元路径模式。 关键词: 劳动力市场分割 职业流动 收入分层 人力资本回报 Using data from the “Survey of Social Networks and Occupational Experience in Chinese Cities in 2009” on five cities (Guangzhou, Shanghai, Xiamen, Jinan and Xi’an), this paper examines factors influencing Chinese urban workers’ patterns of job mobility and acquisition of economic status in the post-reform era. The results show that workers with high educational levels and those with low educational levels occupy different segments of the labor market and have completely different paths to economic status acquisition. In the case of workers with a low educational level, job mobility is the most important factor boosting income levels, while human capital variables (years of s...

This article examines the position of charter schools in prospective elementary teachers' job search decisions. Using a labor market segmentation framework, it explores teacher applicants' decisions to apply to charter schools. The data come from a mixed-methods longitudinal study of prospective teachers looking for their first job. This article finds moderate support that the labor market is segmented between charter and traditional public schools. The school's institutional status and applicants' lack of familiarity with charter schools were related to their disinclination to apply to charter schools.

In this paper we use agency theory to present a process of the dichotomization of the Israeli workforce into two structures, each representing distinct organizational cultures. The first structure is the private sector, led by the high-tech industry; a model where the principal has strong control over the activities of the agent. The second is the public sector, an opposing model in which the principal has virtually no control over the activities of the agents and as a result, the effectiveness within this sector deteriorates. We argue that such conflicting systems cannot exist side by side without affecting each other and we suggest a role for human resource management (HRM) in future developments. Within the public sector it is the responsibility of the principal, the Israeli government, to gain more control over the agent and employ professional HRM systems for this purpose.

During the last decade Brazil has seen an astonishing reversal in the original north-east-to-south-east direction of migration. Within a framework of human capital and self-selection theory we try to identify the individual characteristics and motivations linked to the migration pattern. The overall results of this procedure suggest that there is a key difference between NE $${\Rightarrow }$$ SE movers and SE $${\Rightarrow }$$ NE movers. (1) SE $${\Rightarrow }$$ NE movers were adverse self-selected in terms of observable education characteristics. (2) No self-selection could be observed among migrants in the NE $${\Rightarrow }$$ SE direction. In general the North-East seems less attractive to highly skilled people. (3) Labor market segmentation with respect to sector occupation is likely. (4) There are clear differences in income determinants between movers and non movers. The majority of migrants except for migrants with higher education cannot expect to realize a return to education comparable to the average in the region of departure or destination. However, in the context of the Borjas selection model the returns to education analysis would predict a different pattern of migrant selectivity than the one observed in Brazil. Apart from soft characteristics connected to the regions we believe, that the large share of the non formal labor market is likely to indicate a surplus labor leading to a migration pattern different than expected from selection theory.

This paper examines the relationship between migration and labor-market segmentation in the northeastern Chinese city of Dalian. Several authors have stressed the importance of institutional arrangements in shaping the opportunity structures confronting migrants to China's urban areas. In particular, the ‘insider status' defined by the differential hukou or household registration status has been implicated in differential access to housing, schooling, health, and other benefits, as well as employment. The examination of the role of the hukou system in shaping employment outcomes in three high-tech industrial sectors of Dalian does not challenge this general finding; however, important variations among the software, biotech, and digital manufacturing industries are found. In these industries, the increasingly decentralized decision making of local economic development policy and shortages of skilled workers are leading to a selective relaxation of the hukou system—at least for some migrants. The implications of these changes for labor-market outcomes and urban development are highlighted.

This paper investigates the occupational mobility and job quality of young people in Indonesia and relates this to the concept of “scarring.” The concept of labor market scarring in this paper is the occurrence of low or zero returns to certain types of work (for example, self-employment). Scarring is expected to occur whenever an individual spends periods working in occupations in which their human capital is either stagnant or deteriorating. Fixed effects estimations using panel data from the Indonesian Family Life Survey reveal that a period in self-employment is associated with negative returns for youth (about 3 to 4 percent per year penalty), but not for older adults. In addition, there are clear patterns of persistence in self-employment over time with few individuals progressing from petty self-employment to businesses with permanent workers.

This paper analyzes recent trends in Sweden's labor market regulations in relation to comparator economies and examines the relationship between labor market regulations and outcomes. The paper finds that the Swedish labor market responded more rapidly to the recent global financial crisis than the majority of the European Union economies, which helped Sweden to recover quickly. Sweden's hiring regulations are more flexible than those of many comparator economies, however, fixed-term contracts of short duration might have adverse consequences for the economy. In addition, Sweden's regulations on work during the weekly holidays and mandatory paid annual leave are stricter than those of the majority of comparator economies. Moreover, among the economies of the Organisation for Economic Co-operation and Development, Sweden has one of the largest differences in employment protection between permanent and temporary employees, which could lead to a segmented labor market, where insiders enjoy high job security and outsiders are largely marginalized. This could be cause for concern, given that Sweden has a higher share of involuntary temporary workers among youth and involuntary part-time workers than both the Nordic and European Union averages. While protecting employees is important, excessive protection, particularly if it differs across different types of employment contracts, has been shown to have adverse effects on welfare and economic performance.

Executive Overview This article provides a different viewpoint to the article “Sizing the Emerging Global Labor Market,” written by Diana Farrell et al. in this issue of Perspectives. The article and the important report Farrell and her colleagues at the McKinsey Global Institute (MGI 2005) completed in late 2005 provide much food for thought regarding offshoring of service jobs. The accompanying article gives only a flavor of the results, while the report contains the most detailed micro-level analysis available of the employment impacts of offshoring upon specific sectors. In contrast to the report's rather muted conclusion regarding the dimensions and implications of services offshoring, a more comprehensive reading suggests a profound transformation of the employment and wage structure for many college-educated Americans is underway.1

Within the last decade, a considerable literature has emerged on the growth and location of producer services employment in North America, and in the role of labor market characteristics in shaping these changes. One of the outcomes of this research has been the realization that producer services are overwhelmingly concentrated in metropolitan areas, and that there is a strong core-periphery dichotomy in the representation of these activities. This paper explores the labor market characteristics of a set of producer service activities within the peripheral urban hierarchy of Saskatchewan, Canada, dominated by the regional cores of Saskatoon and Regina, and surrounded by ten peripheral regions. The data set was provided by Employment Canada, and divided into Canada Employment Centre (CEC) Areas. It was found that the higher order producer services, such as Finance and Business Services, are significantly underrepresented relative to the rest of Canada, while others, such as Services to Primary Producers and Transportation and Communications, are significantly overrepresented. However, the nature of these services, as reflected in their labor market characteristics, are very different. Gender and the role of part-time labor appear to be distinguished on the basis of the specific producer service sector, with very few distinctions across space. On the other hand, differences in the roles played by part-year labor is less related to the sector and more related to position within the peripheral hierarchy. Although the heartland-hinterland model is usually applied at national or even international scales of analysis, the nature of the segmentation of the producer services labor force, and its relationship to urbanization and development of the sector, imply that the model can in fact be used as a fiamework for analyzing intraregional employment relationships within the periphery. This study highlights the nature of the labor force as one aspect of this framework.

Employers in all industrial societies have sought greater flexibility in their employment systems. This article discusses some key ways in which employers have sought to restructure their workforces to become more flexible and the consequences of such restructuring for workers and jobs. The author argues that U.S. employers' use of numerical and functional flexibility strategies has led to a division between organizational insiders (standard employment relations) and outsiders (who have nonstandard work arrangements). The consequences of working in nonstandard employment relations differ depending on workers' individual and collective control over skills and other valued resources.

Established migration theories are mostly based on capitalist market economies and downplay the role of institutions in internal migration and labor market processes. In socialist and transitional economies such as those in Russia and China, however, investigations of migration and the labor market must begin by examining the nature and consequences of state institutions. In this article, I argue that the migration and labor market processes in Chinese cities are deeply influenced by an institution-based opportunity structure. The household registration (hukou) system, in particular, is interwoven with distribution of services and job opportunities. Most peasants who enter cities in response to increased demands for cheap labor are not granted urban citizenship and are treated as “outsiders” to the urban society. The experiences of these “temporary migrants” contrast with those of “permanent migrants” who are state-sponsored or have access to institutional resources. Using qualitative accounts from a 1995...

We develop a model of relational contracts with moral hazard and asymmetric persistent information about an employee's type. We find that the form of the optimal contract depends on the job characteristics as well as the distribution of employees' talent. Bonus contracts are more likely to be adopted in complex jobs and when high talent is not too common or too rare. Firms with 'normal' jobs are more likely to adopt termination contracts. In labor market equilibrium, different contracts may be adopted by ex ante identical firms. Hence, we offer an explanation for the co-existence of different employment systems within the same industry.

Analyzing the self-selection of workers into formal and informal sector employment in Tajikistan, a poor transition economy, with higher informal sector than formal sector wages and an informal sector employment share exceeding 50 percent, we find that the selection of formal and informal sector workers is based on comparative advantages rather that labor market segmentation. Furthermore, labor supply to the two sectors reacts rather elastically to relative wages. Policies increasing relative wages in the formal sector could thus be effective in reducing the high informal sector employment share in this country.

Prior research on the Information Technology (IT) profession reflects two conflicting schools of thought. Some consider IT an occupational labor market (OLM) where careers comprise sequences of job...

This article reviews theoretical and empirical work in labor economics and the sociology of work relating to the segmentation of the labor market into a primary and a secondary sector and examines the implications for vocational rehabilitation. Demand-side and supply-side factors associated with labor market segmentation and movement of workers from the secondary to the primary sector are reviewed. Transition into primary sector employment is explored as an important aspect of career development for individuals with disabilities. Recommendations for working toward this goal are offered for job development, job analysis, and job training and support.

Despite the importance placed on reducing public sector employment in sub-Saharan Africa, remarkably little is known about the labor market transition paths of departing public sector workers. This paper uses household survey data from Conakry, Guinea to establish evidence of labor market segmentation between the wage and nonwage sectors. An empirical model of the unemployment durations experienced by departing public sector workers finds that transition paths vary significantly according to personal characteristics that also affect the resulting earnings opportunities in segmented labor markets. Particularly, there is a marked tendency of females to enter quickly the nonwage sector, relative to males, and a negative influence of severance payments on wage sector employment acceptance. J. Comp. Econom., December 1997, 25 (3), pp. 385–402. Department of Agricultural and Applied Economics, Virginia Tech University, 208 Hutcheson Hall, Blacksburg, Virginia 24060-0401 and Cornell University, 3M28 Martha Van Rensselaer Hall, Ithaca, New York 14853.

This paper revisits the fitting of parametric distributions to earned income data. In line with Camilo Dagum's dictum that candidate distribution should not only be chosen for fit, but that economic content should also play a role, a new candidate is proposed. The fit of a simple finite mixture performs as well or better than the recently widely used generalized beta of the second kind (GB2) and is argued to be easier to interpret economically. Specifically, the good fit is taken as evidence for a finite level of segmentation in the labor market, with a distinctly different generating mechanism underlying each segment. It is speculated that this could be reconciled with either modern labor market models in which agent or firm heterogeneity can lead to different equilibrium configurations, or an older theory of labor market segmentation. In fact, the use of the mixture model addresses one of the central weaknesses of testing that older theory empirically. The approach taken in this paper is also motivated by the work of E. T. Jaynes, the father of maximum entropy approaches to statistical inference and related to the recent work by physicists on the distribution of income.

The number of ethnic minority and women-owned businesses has increased rapidly during the past few decades. However, the characteristics of these businesses and their owners differ by race, ethnicity, and gender. Using a confidential national survey of ethnic minority and women-owned businesses in the United States, this study examines ethnic minority- and women-owned businesses segmented by industrial sectors. Consistent with gender occupational segregation, male- and female- owned businesses have distinctive sectoral concentration patterns, with ethnic minority women- owned businesses highly concentrated in a limited number of industrial sectors. However, the relationship between business sectoral concentration and business performance is not uniform across ethnic and gender groups. Concentration in specific industrial sectors does not necessarily mean poor performance when measured by sales, size of employment or payrolls. However, for women-owned businesses, those sectors obviously pay less and have marginal profits, especially if considering the size of the firms.

This paper analyzes new forms of flexibility in the US apparel industry and the consequences of this flexibility for labor market segmentation. Post-Fordist flexible work organization takes place only in those enterprises that occupy privileged positions in newly established hierarchical networks of firms. Subcontracting work to smaller firms results in labor segmentation between rather than within firms. Dominant firms in hierarchical networks gain production efficiencies similar to that attained by a fixed hierarchy within Fordist type enterprises. For most apparel workers, the new production system could best be described as neo-Fordist, since it appears to be predicated on routinization and work intensification.

Using material available in the Canadian censuses, we construct some of the most detailed historical estimates for the industrialized world for occupational structure and the gender pay gap from 1900 to 1930. Our findings suggest that pay inequality in Canada diminished over the period under study, although the rate of pay received by women remained substantially below that of men. This decline is found to be due, to a large extent, to the changing occupational structure between women and men over time which involved both the gradual dominance of women in clerical work and the absence of any change in labor market segmentation. We also find that, for each year examined in this study, the differential distribution of women and men between sectors did not play a large role in accounting for the pay gap.

From the perspective of segmented labor market theory, this paper aims to provide evidence-based study on temporary workers and labor marginalization in Taiwan in the period of 1991-2010. New phase of industrial restructuring and monopsony dating back to the early 1990s serves as the main force in shaping Taiwan labor market which is characterized by new type of segmented labor market. The paper demonstrates (1) temporary workers in general and foreign contract workers in specific, and (2) status of labor marginalization by using composite indicator derived from wage gains and working load. Main findings are: (1) because of deindustrialization, manufacturing offshoring, and new business monopsony, temporary workers including foreign contract workers and low-workload low-pay workers are surging, being mostly selective of females, the youth, the less educated, and workers in traditional manufacturing and electronics; (2) in specific, based on existing research, the paper characterizes the interaction of immigrant contract workers with Taiwan native-born workers. The paper concludes that entrapped temporary workers and labor marginalization are polarizing Taiwan labor market and growing foreign contract workers who are entrapped in secondary labor market too are associated with enhancing labor market segmentation effect. Tensions surge sharply in secondary labor market and feelings of relative deprivation among workers in secondary labor market rise sharply. Thus profound and insightful institutional changes in labor market are urgently required. El objetivo de este artículo es analizar, desde la perspectiva de la teoría del mercado de trabajo segmentado, el proceso de marginalización de los trabajadores temporales en Taiwán en el período 1991-2010. La reestructuración industrial y el monopolio comercial experimentado durante la década de los noventa han moldeado el mercado de trabajo taiwanés que se caracteriza por nuevas formas de segmentación. Este artículo analiza las formas de marginalización de los trabajadores temporales en general, y de los trabajadores migrantes temporales en particular, a través del uso de indicadores. Las principales conclusiones del artículo son que, como consecuencia de los procesos de desindustrialización y externalización de la economía y de las nuevas formas de monopolio comercial, se ha producido un considerable incremento en el mercado de trabajo taiwanés de los trabajadores temporales -incluidos trabajadores temporales migrantes reclutados a través de programas- con especial incidencia en el caso de las mujeres, los jóvenes y los trabajadores de baja cualificación y en los sectores tradicionales de la manufactura y la electrónica. El artículo también caracteriza la interacción entre los trabajadores taiwaneses y los trabajadores inmigrantes temporales reclutados a través de programas. El artículo concluye que las formas de temporalidad y de marginalización laboral que experimentan este tipo de trabajadores muestran la polarización del mercado de trabajo taiwanés y realzan el efecto de segmentación. El surgimiento de sentimientos de «privación relativa entre este tipo de trabajadores muestran la urgencia de abordar cambios institucionales en el ámbito laboral.

We provide new evidence on the debate whether CEOs in public U.S. firms are significantly overpaid using their counterparts in private U.S. firms over the period 1999 to 2008. Using public and private firm CEO pay data made available through mandated SEC disclosures, we first show that after controlling for firm and CEO characteristics, public firm CEOs are paid more than private firm CEOs, with a modest pay premium of about 20%, and public firm CEOs are given more on-going equity incentives. This public pay premium becomes economically insignificant after accounting for differences in risk, dividend policy, and CEO turnover between public and private firms. We then show that both public and private firm CEO annual compensation is positively and significantly related to firm accounting performance, and the pay-performance link is much stronger in public firms. We provide some evidence that the pay differential is related to labor market segmentation between the two types of firms and increasing over time. Finally, when firms transition from private to public status, we find that both the level and structure of pay change significantly in ways that corroborate our findings from the cross-section.