In this article, I describe a methodology for analyzing the earnings distribution in segmented labor markets. I model earnings inequality as a function of labor market structure, then model change in the distribution of earnings between and within labor markets as a function of aggregate economic performance. Finally, I derive statistical models that can be estimated with existing data on earnings and employment. I conclude by discussing the relevance of this methodology for adjudicating theoretical issues in the political economy of inequality.
Get full access to this article
View all access options for this article.
References
1.
AKERLOF, G. A.
and J. L. YELLEN [ed.] (1986) Efficiency Wage Models of the Labor Market. Cambridge: Cambridge Univ. Press.
2.
ALLISON, P. D.
(1978) “Measures of inequality.”Amer. Soc. Rev.43: 865-880.
3.
ATKINSON, A.
(1970) “On the measurement of inequality.”J. of Economic Theory2: 244-263.
4.
BERG, I.
[ed.] (1981) Sociological Perspectives on Labor Markets. New York: Academic Press.
5.
BLINDER, A.
and H. ESAKI (1978) “Macroeconomic activity and income distribution in the post-war United States.”Rev. of Economics and Statistics60: 604-608.
6.
BODDY, R.
and J. CROTTY (1975) “Class conflict and macro-policy: the political business cycle.”Rev. of Radical Pol. Economics7: 1-19.
7.
BOWLES, S.
and H. GINTIS (1986) Democracy and Capitalism: Property, Community, and the Contradictions of Modern Social Thought. New York: Basic Books.
8.
BRAVERMAN, H.
(1974) Labor and Monopoly Capital. New York: Monthly Review Press.
9.
CAIN, G.
(1976) “The challenge of segmented labor market theories to orthodox theory: a survey.”J. of Economic Literature14: 1215-1257.
10.
COLEMAN, J.
(1968) “The mathematical study of change,” pp. 426-478 in H. M. Blalock, Jr. and A. B. Blalock (eds.) Methodology in Social Research. New York: McGraw-Hill.
11.
DOREIAN, P.
and N. HUMMON (1976) Modeling Social Processes. New York: Elsevier.
12.
EDWARDS, R.
(1979) Contested Terrain: The Transformation of the Workplace in the Twentieth Century. New York: Basic Books.
13.
FISHLOW, A.
(1972) “Brazilian size distribution of income.”Amer. Economic Rev.62: 391-402.
14.
FLEISHER, B. M.
(1970) Labor Economics: Theory and Evidence. Englewood Cliffs, NJ: Prentice-Hall.
15.
FREEMAN, R. B.
and J. L. MEDOFF (1984) What Do Unions Do?New York: Basic Books.
16.
GORDON, D.
(1972) Theories of Poverty and Unemployment. Lexington: D. C. Heath.
17.
GORDON, D.
(1986) “Procedure for allocating jobs into labor segments.” (unpublished manuscript)
18.
GORDON, D.
, R. EDWARDS, and M. REICH (1982) Segmented Work, Divided Workers. Cambridge: Cambridge Univ. Press.
19.
HANUSHEK, E. A.
(1974) “Efficient estimates for regressing regression coefficients.”Amer. Statistician28: 66-67.
20.
HIBBS, D.
(1976) “Economic interest and the politics of macroeconomic policy.” (unpublished manuscript)
21.
HIBBS, D.
(1977) “Political parties and macroeconomic policy.”Amer. Pol. Sci. Rev.71: 1476-1487.
22.
HIBBS, D.
(1986) “Political parties and macroeconomic policies and outcomes in the United States.”Amer. Economic Rev.76: 66-70.
23.
HODSON, R.
(1978) “Labor in the monopoly, competitive, and state sectors of production.”Politics and Society8: 429-480.
24.
HODSON, R.
and R. KAUFMAN (1981) “Circularity in the dual economy: a comment on Tolbert, Horan, and Beck, 1980.”Amer. J. of Sociology86: 881-887.
25.
HODSON, R.
and R. KAUFMAN (1982) “Economic dualism: a critical review.”Amer. Soc. Rev.47.
26.
KALLEBERG, A.
and L. GRIFFIN (1980) “Class, occupation, and inequality in job rewards.”Amer. J. of Sociology85: 731-768.
27.
KALLEBERG, A.
, M. WALLACE, and R. ALTHAUSER (1981) “Economic segmentation, worker power and income inequality.”Amer. J. of Sociology87: 651-683.
28.
KAUFMAN, R.
, R. HODSON, and N. FLIGSTEIN (1981) “Defrocking dualism: a new approach to defining industrial sectors.”Social Sci. Research10: 1-31.
29.
KNOKE, D.
, L. E. RAFFALOVICH, and W. ERSKINE (1986) “Class, status, and economic policy preferences.”Research in Social Stratification and Mobility6: 141-158.
30.
KUZNETS, S.
(1955) “Economic growth and income inequality.”Amer. Economic Rev.45: 1-28.
31.
LAND, K. C.
and M. FELSON (1976) “A general framework for building dynamic macro social indicator models, including an analysis of changes in crime rates and police expenditures.”Amer. J. of Sociology82: 565-604.
32.
MASON, W. M.
, G. Y. WONG, and B. ENTWISLE (1984) “Contextual analysis through the multilevel linear model,” pp. 72-103 in S. Leindhardt (ed.) Sociological Methodology 1983-84. San Francisco: Jossey-Bass.
33.
METCALF, C.
(1972) An Econometric Model of the Income Distribution. Chicago: Markham.
34.
MIRER, T. W.
(1973) “The effects of macroeconomic fluctuations on the distribution of income.”Rev. of Income and Wealth19: 385-405.
35.
MITCHELL, D.
(1980) Unions, Wages and Inflation. Washington, DC: Brookings Institution.
36.
MORRISON, D. F.
(1983) Applied Linear Statistical Methods. Englewood Cliffs, NJ: Prentice-Hall.
37.
NIELSON, F.
and R. ROSENFELD (1981) “Substantive interpretations of differential equation models.”Amer. Soc. Rev.46: 148-174.
38.
O'CONNOR, J.
(1973) The Fiscal Crisis of the State. New York: St. Martins.
39.
OSBERG, L.
(1984) Economic Inequality in the United States. Armonk, NY: M. E. Sharpe.
40.
PETTENGILL, J.
(1980) Labor Unions and the Inequality of Earned Income. Amsterdam: North-Holland.
41.
PRZEWORSKI, A.
(1977) “Proletariat into class: the process of class formation from Karl Kautsky's `The class struggle' to recent controversies.”Politics and Society7: 343-401.
42.
RAFFALOVICH, L. E.
(1984) “Distributional bargaining: a critical review.” (unpublished manuscript)
43.
RAFFALOVICH, L. E. (1987a) “Macro-economic processes and the distribution of earned income.” Ph.D. dissertation, Indiana University, Bloomington.
44.
RAFFALOVICH, L. E.
(1987b) “The impact of macro-economic performance on the between-industry distribution of labor earnings.” (unpublished manuscript)
45.
REICH, M.
(1984) “Segmented labour: time series hypotheses and evidence.”Cambridge J. of Economics8: 63-81.
46.
SATTINGER, M.
(1980) Capital and the Distribution of Labor Earnings. Amsterdam: North-Holland.
47.
SCHERVISH, P.
(1983) Vulnerability and Power in Market Relations: The Structural Determinants of Unemployment. New York: Academic Press.
48.
STOLZENBERG, R.
(1975) “Occupations, labor markets and the process of wage attainment.”Amer. Soc. Rev.40: 645-665.
49.
THUROW, L.
(1970) “Analyzing the American income distribution.”Amer. Economic Rev.60: 261-269.
50.
THUROW, L.
(1975) Generating Inequality. New York: Basic Books.
51.
TREAS, J.
(1983) “Trickle down or transfers: postwar determinants of family income inequality.”Amer. Soc. Rev.48: 546-559.
52.
TUMA, N. B.
and M. T. HANNAN (1984) Social Dynamics. Orlando, FL: Academic Press.
53.
WALLACE, M.
and A. KALLEBERG (1981) “Economic organization of firms and labor market consequences: toward a specification of dual economy theory,” pp. 77-117 in I. Berg (ed.) Sociological Perspectives on Labor Markets. New York: Academic Press.
54.
WALLACE, M.
and A. KALLEBERG (1982) “Industrial transformation and the decline of craft: the decomposition of skill in printing industry, 1931-1978.”Amer. Soc. Rev.47: 307-324.
55.
WILLIAMSON, J.
(1980) “Earnings inequality in nineteenth-century Britain.”J. of Economic History40: 457-475.
56.
WILLIAMSON, J.
and P. LINDERT (1980) American Inequality: A Macroeconomic History. New York: Academic Press.
57.
WRIGHT, E. O.
(1978) Class, Crisis, and the State. London: New Left Books.