Segmented Labor Markets: New Evidence from a Study of Four Race-Gender Groups

Abstract

Using data from a supplement to the 1983 Current Population Survey, the author tests hypotheses of segmented labor market theory. Two labor market sectors (a primary sector and secondary sector) are identified on the basis of occupational segmentation, as inferred from workers' answers to the question of whether specific skills or prior training were conditions for their employment. The results show significant unexplained earnings differentials across sectors for each of four groups: black men, black women, white men, and white women. Other segmented labor market hypotheses are also generally supported by the results, but distinct variations are found across the four groups.