LABOR-MARKET SEGMENTATION - A LOCAL-LABOR MARKET ANALYSIS USING ALTERNATIVE APPROACHES

Earlier studies have generally attempted to establish the presence or otherwise of labour market segmentation using a single technique. Usin g data drawn from the British Social and Economic Life Initiative (SCE LI) for six local labour markets this paper tests for segmentation usi ng four different methods of analysis (a simple career/non-career mode l, cluster analysis, factor analysis and switching regressions). The r esults in general suggest that explanatory power is not improved by an alysing the labour market in different segments. But this simple caree r model points to higher rewards for given characteristics in the care er sector and the results of the switching regression model are consis tent with duality in one of the six markets.