TY  - JOUR
AU  - Dickens,William T.
AU  - Lang,Kevin
TI  - A Goodness of Fit Test of Dual Labor Market Theory
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 2350
PY  - 1987
Y2  - August 1987
UR  - http://www.nber.org/papers/w2350
L1  - http://www.nber.org/papers/w2350.pdf
N1  - Author contact info:
William Dickens
School of Public Affairs
University of Maryland
College Park, Maryland  20742-1821
Tel: 301 405-3494
E-Mail: wtdickens@gmail.com

Kevin Lang
Department of Economics
Boston University
270 Bay State Road
Boston, MA  02215
Tel: 617/353-5694
Fax: 617/353-4001
E-Mail: lang@bu.edu
AB  - We subject our dual labor market model to a goodness of test fit and compare the results with those obtained using a single equation model with a complex error structure. The dual labor market does an excellent job of predicting the wage distribution except for failing to explain bunching at $7.50 and $10.00 per hour. The null hypothesis that the model is correct cannot be rejected at the .05 level. In contrast, the wage distribution predicted by the single labor market model differs significantly from the observed distribution.
ER  -