A DYNAMIC ANALYSIS OF SEGMENTED LABOR MARKET

Patrice Gaubert (1) , Marie Cottrell (1, 2)

1 MATISSE - UMR 8595 - Modélisation Appliquée, Trajectoires Institutionnelles et Stratégies Socio-Économiques
2 SAMOS - Statistique Appliquée et MOdélisation Stochastique

Using the Panel Study of Income Dynamics data on the period 1982-1992, this paper investigates some mechanisms of the labor market in the United States. This market is analyzed as a stable structure constituted of segments which present contrasted characteristics under the usual distinction between primary and secondary sectors. Using a neural network algorithm applied on quantitative variables measured at the level of heads of household, a broad classification in four classes of situations is constructed. It shows a clear hierarchy going from situations of very precarious work or no work at all, to situations of stable jobs with higher wages than the average. A Markov chain, constructed with the trajectories between the different situations of these workers, shows a very stable structure of this segmented labor market. Keywords: segmented labor market, unemployment, trajectories, Kohonen algorithm, Markov chain.

Mots clés: Markov chain; Keywords: segmented labor market; unemployment; trajectories; Kohonen algorithm; Markov chain.

Domaines: Statistiques [math.ST]; Economies et finances

Patrice Gaubert, Marie Cottrell. A DYNAMIC ANALYSIS OF SEGMENTED LABOR MARKET. Fuzzy Economic Review, 1999, Vol IV, n° 2, pp.63-82. ⟨hal-00134147⟩