Using a switching regression model with unknown regimes, this paper presents a test of the duality of labor market in Cheonrabuk-Do. We find that the labor market in the region can be described as consisting of two distinctive sectors; a low-wage (sec...
Using a switching regression model with unknown regimes, this paper presents a test of the duality of labor market in Cheonrabuk-Do. We find that the labor market in the region can be described as consisting of two distinctive sectors; a low-wage (secondary) sector with low returns to schooling, tenure and market experience and a high-wage (primary) sector with opposite characteristics. The main determinants of labor market segmentation are gender, human capital, and types of employment. However, establishment size are not found to be an contributing factor in labor market duality.