Testing for segmentation: an establishment-level analysis

It has long been suggested that the industrial structure inBritain is partitioned along core-periphery lines, as positedin segmented labour market theory. Empirical evidence for thisproposition, however, has not been strong. In contrast to previouswork, this study uses establishment-level data, which is generallyrecognised to be the most appropriate level of analysis. Theresults are supportive of a segmentation approach (though thenature of this segmentation is more complex than simple dualistmodels suggest), but it is shown to be strongly associated withexpected outcome variables, particularly those relating to employmentstability and low pay. Manuscript received September 15, 1995; final version received April 25, 1997.