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The Decomposition of Wage Differential in a Segmented Labor Market

Volume 3, Issue 3, June 2019    |    PP. 93-101    |PDF (273 K)|    Pub. Date: August 19, 2019
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Jun Kong, School of Economics and Management, Northwest University, China
Tingting Niu, School of Economics and Management, Northwest University, China
Qing Deng, School of Economics and Management, Northwest University, China

Through theoretical frame design and number simulation, a new approach on nondiscriminatory wage structure is established so as to decompose wage differential by linking the labor market and product market, assuming a segmented labor market. Results indicate that the nondiscriminatory wage structure may be overestimated, and the coefficient value may exceed the range of respective coefficients for whites and blacks regressed under the condition of labor market segmentation.

Decomposition, wage difference, nondiscrimination, labor market segmentation

Cite this paper
Jun Kong, Tingting Niu, Qing Deng, The Decomposition of Wage Differential in a Segmented Labor Market, SCIREA Journal of Sociology. Vol. 3 , No. 3 , 2019 , pp. 93 - 101 .


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