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By Duane E. Leigh

ISBN-10: 0124428509

ISBN-13: 9780124428508

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Extra info for An Analysis of the Determinants of Occupational Upgrading

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G . , O C C U P ( 6 5 ) is occupational status in 1965); a n d w i , W2, a n d w 3 are disturbance terms. T h e e n d o g e n o u s variables in the m o d e l are O C C U P ( 7 0 ) , I N D U S ( 7 0 ) , and R E G I O N ( 7 0 ) , w h e r e a s the r e m a i n i n g variables are treated as either e x o g e n o u s l y d e t e r m i n e d — E D , T R A I N , T E N U R E , AGE, and RACE—or as lagged endogenous variables— O C C U P ( 6 5 ) , I N D U S ( 6 5 ) , and R E G I O N ( 6 5 ) . T h e variables E D , T R A I N , and T E N U R E are p r e s u m e d to b e e x o g e n o u s l y deter­ m i n e d as they are i n t e n d e d to measure e n d o w m e n t s o f human capi­ tal possessed b y the i n d i v i d u a l prior to 1965.

I n other w o r d s , barriers b e t w e e n markets d o not appear high enough to generate " m o n o p o l y rents" to w o r k e r s e m p l o y e d in concentrated industries. Weiss d o e s report, h o w e v e r , that unions h a v e a p o s i t i v e i m p a c t on w a g e s ; and m o r e recent studies indicate that after c o n t r o l l i n g for differences in human capi­ tal, such factors as g e o g r a p h i c location, occupation, industry, and union m e m b e r s h i p all affect w a g e s ( B l i n d e r , 1973; Kalachek and Raines, 1976).

For each year b e t w e e n 1957 and 1971, the i n c o m e distribution is d i v i d e d into t w e n t y proportional parts c a l l e d v e n t i l e s . U s i n g the fifth v e n t i l e as the d i v i d i n g l i n e b e t w e e n sectors o f the labor market, Schiller finds that sufficiently great m o b i l i t y existed o v e r the 1957-1971 p e r i o d to indicate that the secondary sector cannot b e v i e w e d as a self-contained trap for either black or w h i t e w o r k e r s . A s w i t h the Andrisani study, the particular p r i m a r y - s e c o n d a r y bound­ ary used b y Schiller is arbitrary although he notes that the results are not sensitive to the c h o i c e o f the fifth v e n t i l e .

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An Analysis of the Determinants of Occupational Upgrading by Duane E. Leigh


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