TY  - JOUR
AU  - Rebitzer,James B.
AU  - Robinson,Michael D.
TI  - Employer Size and Dual Labor Markets
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 3587
PY  - 1991
Y2  - January 1991
UR  - http://www.nber.org/papers/w3587
L1  - http://www.nber.org/papers/w3587.pdf
N1  - Author contact info:
James B. Rebitzer
Professor of Management, Economics, Public Policy
Markets, Public Policy and Law Department
Boston University School of Management
595 Commonwealth Ave.
Boston, MA 02215
Tel: 617-383-7356
Fax: NA
E-Mail: rebitzer@bu.edu

Michael Robinson
Dept. of Economics
Mount Holyoke College
South Hadley, MA 01075
E-Mail: mirobins@mhc.mtholyoke.edu
AB  - Recently developed effort regulation models argue that labor markets are segmented because of differences in the technology of supervision across firms. primary jobs pay above market clearing wages because these jobs are difficult to monitor. Secondary jobs, in contrast, pose no monitoring difficulties and therefore pay a market clearing wage. If, as the literature suggests, increases in employer size make supervision more difficult, we should observe that wages increase with employer size in primary jobs but not in secondary jobs. We test this hypothesis using a switching regression model. We find evidence of an employer size wage effect in both primary and secondary labor markets. However, consistent with the prediction of effort control models, the size effect on wages is considerably larger in primary than secondary jobs.
ER  -