Labor Market Segmentation in Urumqi, Xinjiang: Exposing Labor Market Segments and Testing the Relationship between Migration and Segmentation

Author(s):  
Anthony Howell
Author(s):  
Markus P. A. Schneider

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.


2016 ◽  
pp. 60-98
Author(s):  
Markus P. A. Schneider

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.


Author(s):  
Harald Bauder

The relationship between migration and labor markets can be approached from different conceptual and philosophical angles. In this chapter, I draw on labor market segmentation theory to examine how the international mobility of workers interlinks with the international segmentation of labor. In addition, I highlight two aspects of this relationship that have been sidelined in the existing literature but that are important to understanding how this relationship works. The first aspect is the notion of citizenship. Although this notion has received considerable attention in the social sciences in recent years, it has been neglected as a driving force of the segmentation of labor. The second aspect is the cultural representation of migrating populations and workers, which contributes vitally to the regulation of labor markets. The structure of this chapter follows the intention to convey a particular theoretical perspective and to highlight particular aspects of this perspective. First, I present segmentation theory as an entry point into a discussion of the relationship between international migration and labor market regulation. Second, I introduce the notion of citizenship to this discussion. Third, I present cultural representations as critical components in the international segmentation of labor markets. To explain labor market segmentation theory one may begin with Karl Marx. Marx ([1867] 2001) called labor “variable capital” and the means of production “constant capital.” Labor is variable because workers can be hired and fired in response to business and seasonal cycles. The means of production, on the other hand, are constant because they constitute a fixed investment and stay idle in periods of economic slowdown. Segmentation theory begins with the premise that the idleness of machinery and other fixed investments can be prevented or reduced by dividing production into two distinct segments. The primary segment is capital-intensive; high levels of technology ensure the efficient use of the workforce. In times of economic contraction, this primary sector keeps operating to satisfy the basic demand that still exists for products. The secondary segment, on the other hand, is labor-intensive, with only minimal investments in machinery and technology.


Author(s):  
Gary S. Fields

This article is about labor-market models. Its aim is to construct models that are as simple as they can be but as complicated as they need to be. Such models, if carefully done, can contribute to an understanding of observed labor market phenomena and to the formulation of sound labor market policies. Some branches of economics work with models that assume that everybody who works participates in a single, undifferentiated labor market. This article regards such models as grossly unrealistic. The notion of labor market segmentation can be stylized most simply by maintaining that there are two labor market segments. In this article, labor markets should be thought of as consisting not only of wage and salaried employment but also of self-employment. All who work or seek to work in labor markets are termed workers.


2021 ◽  
Vol 10 (5) ◽  
pp. 148
Author(s):  
Rosario Undurraga ◽  
Jóna Gunnarsson

How are the work trajectories of Chilean women? This qualitative study analyzes the female work trajectories through interviews and biograms in a sample of 50 Chilean women, professionals and non-professionals, between the ages of 24 and 88. The article proposes an original typology of female work trajectories and relates type of work trajectory with Piore’s theory of labor market segmentation. The paper discusses the challenges and weaknesses of the Chilean women’s labor outcome and presents recent data to extrapolate the impact of the COVID-19 pandemic on vulnerable work trajectories. It considers the type of State and possible actions to achieve greater welfare and social development regarding gender equality.


2021 ◽  
Vol 570 (9) ◽  
pp. 1-6
Author(s):  
Marek Bednarski

The article attempts to explain the processes of labor market segmentation from the perspective of selected theories included in the New Institutional Economy trend. Finally, the conclusions formulated earlier are confronted with empirical research on segmentation in Polish conditions


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