Labour Market Segmentation: a local labour market analysis using alternative approaches

Earlier studies have generally attempted to establish the presence or otherwise of labour market segmentation using a single technique. Using data drawn from the British Social and Economic Life Initiative (SCELI) for six local labour markets this paper tests for segmentation using four different methods of analysis (a simple career/non-career model, cluster analysis, factor analysis and switching regressions). The results in general suggest that explanatory power is not improved by analysing the labour market in different segments. But this simple career model points to higher rewards for given characteristics in the career sector and the results of the switching regression model are consistent with duality in one of the six markets.