Labor Market Segmentation in Colombia Using Markov Chains
18 Pages Posted: 27 May 2010 Last revised: 9 Jun 2010
Date Written: December 26, 2009
This article discusses regional labor segmentation using stochastic Markov chains. We present a formal model and derive preliminary results using the evolution of wages in Colombian urban areas. The results show that there was regional labor market segmentation in wages for university graduates during the period from 1993 to 2000, and corroborate the existence of structural changes in wages during the nineteen nineties.
Keywords: Labor Market Segmentation, Markov Chains, Structural Changes
JEL Classification: C11, C14, J30, J42
Suggested Citation: Suggested Citation