Is the Swiss Labor Market Segmented? An Analysis Using Alternative Approaches

30 Pages Posted: 1 Apr 2004

See all articles by Alfonso Sousa-Poza

Alfonso Sousa-Poza

University of Hohenheim - Institute of Household and Consumer Economics; IZA Institute of Labor Economics

Abstract

In this paper, three common empirical methods encountered in the segmentation literature are used in order to establish whether or not the Swiss labor market is segmented: (i) a hierarchical cluster analysis; (ii) a switching model with unknown regime; and (iii) an analysis of low-wage mobility with a bivariate probit model with endogenous selection. According to method (i), segmentation can hardly be observed. Method (ii) shows that the Swiss labor market is dualistic in nature. Method (iii) reveals that a certain degree of persistence exists in low-wage jobs. Whether or not the Swiss labor market is segmented, thus depends on the choice of method, i.e., on the definition and understanding of segments. In any case, none of the methods used in this study point to the existence of a large and well-defined secondary segment.

JEL Classification: J16, J31, J41

Suggested Citation

Sousa-Poza, Alfonso, Is the Swiss Labor Market Segmented? An Analysis Using Alternative Approaches. Available at SSRN: https://ssrn.com/abstract=516148

Alfonso Sousa-Poza (Contact Author)

University of Hohenheim - Institute of Household and Consumer Economics ( email )

Fruwirthstrasse 48
Kavaliershaus 4 116
70599 Stuttgart
Germany
++49 (0)711/459-22863 (Phone)
++49 (0)711/459-23953 (Fax)

HOME PAGE: http://www.uni-hohenheim.de/hhoek/englisch/people/alfonsosousapoza/index.html

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
26
Abstract Views
909
PlumX Metrics