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Discrimination and open unemployment in a segmented labor market

Discrimination and open unemployment in a segmented labor market
Discrimination and open unemployment in a segmented labor market
Jobs in the primary sector require firm-specific training, with wages determined as a result of bargaining. Firms pay for the training and since they are imperfectly informed about worker productivity, they test workers before hiring them. The secondary sector is competitive. Taking a job in the secondary sector signals low productivity, and therefore workers in the secondary sector are unable to get jobs in the primary sector. Open unemployment coexists with unfilled vacancies for low wage jobs.
discrimination, segmented, dual, screening, unemployment
0014-2921
1-15
Goffries, Nils
c1c1a625-f61d-4488-8ca3-9db94bc2f905
McCormick, Barry
6030c745-bb61-4e93-ab8f-91e676281e08
Goffries, Nils
c1c1a625-f61d-4488-8ca3-9db94bc2f905
McCormick, Barry
6030c745-bb61-4e93-ab8f-91e676281e08

Goffries, Nils and McCormick, Barry (1995) Discrimination and open unemployment in a segmented labor market. European Economic Review, 39 (1), 1-15. (doi:10.1016/0014-2921(94)00012-O).

Record type: Article

Abstract

Jobs in the primary sector require firm-specific training, with wages determined as a result of bargaining. Firms pay for the training and since they are imperfectly informed about worker productivity, they test workers before hiring them. The secondary sector is competitive. Taking a job in the secondary sector signals low productivity, and therefore workers in the secondary sector are unable to get jobs in the primary sector. Open unemployment coexists with unfilled vacancies for low wage jobs.

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More information

Published date: January 1995
Keywords: discrimination, segmented, dual, screening, unemployment
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Identifiers

Local EPrints ID: 33012
URI: http://eprints.soton.ac.uk/id/eprint/33012
DOI: doi:10.1016/0014-2921(94)00012-O
ISSN: 0014-2921
PURE UUID: c0e92da9-98e9-4f8a-902c-d774a48c0ec0

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Date deposited: 12 Dec 2007
Last modified: 15 Mar 2024 07:41

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Contributors

Author: Nils Goffries
Author: Barry McCormick

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