Investigating Dual Labor Market Theory for Women

Using a switching model with unknown regimes, this paper demonstrates that the women’s labor market is significantly better described by two wage setting mechanisms than by one. Though the evidence is consistent with the hypothesis that women may be rationed into the sector with low wages, the secto...

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Bibliographic Details
Published in:Eastern economic journal Vol. 33; no. 3; pp. 301 - 316
Main Authors: Meyer, Christine Siegwarth, Mukerjee, Swati
Format: Journal Article
Language:English
Published: Basingstoke Palgrave Macmillan 01-07-2007
Eastern Economic Association
Series:Eastern Economic Journal
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Summary:Using a switching model with unknown regimes, this paper demonstrates that the women’s labor market is significantly better described by two wage setting mechanisms than by one. Though the evidence is consistent with the hypothesis that women may be rationed into the sector with low wages, the sectors do not entirely conform to traditional notions of dual labor markets and to results from the men’s labor market. Both sectors have different patterns of rewards to human capital formation which explains the different patterns of labor force attachment in the two sectors.
ISSN:0094-5056
1939-4632
DOI:10.1057/eej.2007.27