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Quarterly Journal of Economics Vol. 104 No. 1 1989

A Theory of Wage Dispersion and Job Market Segmentation

Martin L. Weitzman

Massachusetts Institute of Technology

Abstract

Job market segmentation refers to the idea that there tends to be a correlation among high wages, high productivity, high capital intensity, high value added, few quits relative to layoffs, and low labor turnover. This paper develops a model of wage dispersion and job market segmentation based on the very sparse assumption that the only departure from a strictly orthodox neoclassical world consists of wages being sticky in the short run. Implications of the model are explored and discussed.

DOI
10.2307/2937837
Volume
104
Issue
1
Pages
121
Sources
openalex crossref

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