Labor Market Segmentation and the Union Wage Premium

@article{Dickens1986LaborMS,
  title={Labor Market Segmentation and the Union Wage Premium},
  author={William T. Dickens and Kevin Lang},
  journal={Labor eJournal},
  year={1986}
}
Studies of the earnings of union workers have consistently shown that they earn considerably more than nonunion workers. This paper considers whether part of this observed union/nonunion differential is due to unions organizing high paying primary sector jobs. We extend our earlier work on the dual labor market in which we used an unknown regime switching regression to identify two labor market sectors --a high wage primary sector and a low wage secondary sector. Here we estimate a model where… 

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