Labour Market Segmentation: Wage Differentials and Hysteresis Effects

17 Pages Posted: 19 Feb 2005

See all articles by W. David McCausland

W. David McCausland

University of Aberdeen - Business School

Ioannis Theodossiou

University of Aberdeen - Business School

Abstract

Competitive labour market analysis proposes that an individual's human capital endowment is the main mechanism for pay determination. This study develops a model to highlight hysteresis effects on either investment in physical capital for firms or investment in human capital for workers on wage differentials.

Suggested Citation

McCausland, W. David and Theodossiou, Ioannis, Labour Market Segmentation: Wage Differentials and Hysteresis Effects. Available at SSRN: https://ssrn.com/abstract=669591

W. David McCausland (Contact Author)

University of Aberdeen - Business School ( email )

Edward Wright Building
Dunbar Street
Old Aberdeen AB24 3QY, Scotland AB24 3QY
United Kingdom

Ioannis Theodossiou

University of Aberdeen - Business School ( email )

Edward Wright Building
Dunbar Street
Aberdeen, Scotland AB24 3QY
United Kingdom

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